FAQ


WHY A DEVELOPING OR EMERGING COUNTRY?

  • Manufacturing sector in full development;
  • Cost-effective labour pool;
  • Advantageous manufacturing costs that will allow you to invest more in research and development;
  • Network of contacts giving you access to complementary products and to new markets;
  • Growing presence of competitors trying to reduce their costs and to increase their market share;
  • Strategies to develop new markets.

RISKS IN DOING BUSINESS WITH A DEVELOPING OR EMERGING COUNTRY?

  • Reliability of the quality and order lead times;
  • Copies of your products;
  • Inability of meeting your orders;
  • Competitor stealing your new supplier;
  • Political and social instability.

WHICH STRATEGY SHOULD YOU ADOPT FOR SUBCONTRACTING?

  • According to your qualifications, determine the components that should be outsourced in order to maximize your performance, considering that the first objective is cost reduction;
  • Decide on the human and financial resources that you need to allocate in order to manage the new suppliers;
  • Plan the adaptation and flexibility necessary in establishing new business relations;
  • Do not neglect the importance of volume and developing your activities in order to establish yourself as a promising client for your suppliers;
  • Have on hand an alternative plan in the event your new suppliers cannot fulfill your orders within the required time.

REQUIREMENTS FOR SUCCESS IN A DEVELOPING AND AN EMERGING COUNTRY

  • Have the necessary financial resources; buying or selling abroad may take quite some time before becoming profitable;
  • Have employees who can adequately deal with suppliers or partners in another time zone and are still expecting an adequate follow-up;
  • Have a short and medium term vision; dealing with these countries supposes that you are in control of your traditional markets;
  • Export experience with your neighbour markets will facilitate the transition to countries with very different approaches than the ones of western countries;
  • Have a good knowledge of the products to be exported or subcontracted in order to minimize the risks of copies;
  • Take time to qualify the suppliers and the partners with whom you want to do business.