Why Export?
Why Export?
Who would not accept the importance and necessity of exports for their companies today? To whom "Should we export? Is export important?" If we asked, everyone would say, "Yes, of course!" he replies. However, when we look closely at the actions of the same people, we often do not see that they give this importance to exports. We can explain this as follows, we can give correct answers to some questions without understanding; We know the answer because we have been told or heard from everywhere, but we do not fully understand the nature of the answer. Knowing the answer to a question does not mean understanding it. Knowing and understanding are different things; Understanding is a higher level of consciousness, a state of action. This is how many companies pretend to export today.
Staying Small Takes a Big Risk
Being local, that is, confining yourself to a certain geographical area, brings with it many risks. What could these risks be? For example, an economic recession or turmoil in the region in which you operate will seriously affect the future of your business, as you are solely committed to that market. Another major threat to local businesses is political risks and conflicts. Overwhelming competition and having to work with low profit margins is another curse of confining yourself to a single market.
Cash and Regular Money Can
International trade is largely based on cash. Although short terms such as 30-60 days are used, these are made with relatively more robust payment methods compared to the domestic market. Considering the culture of doing business with postpaid checks up to 90-120 days in Turkey, this is a great comfort for a company. Because it is not tied to just one market, cash flow becomes more streamlined and financial planning becomes more meaningful.
Export Provides Transition to Economies of Scale
Economy of scale is a cost advantage that occurs when unit costs decrease as a result of more production or distribution of a product or service. Increasing export sales to foreign markets gives companies this cost advantage.
In addition, it is possible to get more efficiency from a product in its life cycle by increasing export sales. Likewise, the yield from investments in R&D, design and marketing will be higher.
Exporting Offers Competitive Advantages to Firms
Companies can gain many competitive advantages by exporting, such as discovering new trends, changes and investment opportunities, ensuring brand awareness, being protected from economic turmoil in any market, and carrying some applications that have been tested in one market to other markets. Exporting teaches and develops.
Exporting Strengthens the Firm in Its Domestic Market
Companies exporting their products to various countries of the world will be preferred primarily in the domestic market. Because the product quality and business culture of these companies are expected to be more settled and of a certain standard.
In addition, there are many supports and incentives offered by the government for exporters. While these supports come with a little bureaucracy to deal with, they offer good opportunities for companies to thrive.
As a result
We should open our eyes and see that there is a whole world outside of the place/country we live in. Just as customers have the opportunity to choose richly today, an exporter can also have the opportunity to choose the most suitable market and customer for him; for example, the exporter may choose to operate in less competitive markets with higher profit margins; it can escape markets where there are political risks, economic turmoil, and deadly competition. An exporter's playground is the whole world.