The extent to which your company is willing to modify products sold into export markets is a key policy issue to be addressed.

Selecting and preparing your product for export requires knowledge of the unique characteristics of each target market. Some exporters believe their domestic products can be exported without significant changes; others seek to develop uniform products that are acceptable in all markets. It is very important to do research and to be sure of the right strategy. Here are some things to consider and resources to help.

Product Adaptation

To enter a foreign market successfully, your company may have to modify its product for:

  • foreign government regulations
  • geographic and climatic conditions
  • buyer preferences, such as religious practices or the use of leisure time
  • local standards of living
  • facilitating shipment
  • possible differences in engineering or design standards

Potential vs. Cost

Market potential must be great enough to justify the direct and indirect costs involved in product adaptation.Your company should assess the costs to be incurred and, though it may be difficult, should determine the increased revenues expected from adaptation.

The decision to adapt a product is based partly on the degree of commitment to the specific foreign market;a company with short-term goals will probably have a  different perspective than one with long-term goals.

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