Export Business Plan Business Plan

Export Business Plan: Moldovan Cellular Phones

Purpose-Why has the plan been written?

The plan has been written in order to guide our mobile phone export business. Cell phones in Moldova are rapidly overtaking land phones as many cellular phones now provide Internet access and cell phone computers. SMS, MMS and broadband are becoming standard features on cell phones. Nonetheless, mobile phones are expensive in Moldova and not everyone can afford them. Furthermore, although Moldova has made great lines in improving their technology in the telecommunications area, there is still line for improvement. Cellphones need to be upgrade to a 4G level. At the moment they are ranked at 2G and 3G. Moldovan Cellular Phones can find their niche by exporting refurbished cheap mobile phones to Moldova, introducing cheap policies and incentives, and providing Moldavians with quality mobile phones at competitive prices. The potential for success is huge.

Table of contents-

Sample Outline for the Export Business Plan

I. Purpose-Why has the plan been written?

II. Table of contents-Include a list of any appendixes.

III. Executive summary-This is short and concise (not over two pages) and covers the principal points of the report. It is prepared after the plan has been written.

IV. Introduction-Explains why the firm will export.

V. Situation analysis.

A. Description of the firm and products to be exported.

B. Company resources to be used for the export business.

C. Competitive situation in the industry.

1. Product comparisons.

2. Market coverage.

3. Market share.

D. Export organization-personnel and structure.

VI. Export marketing plan.

A. Long- and short-term goals.

1. Total sales in units.

2. Total sales in dollars.

3. Sales by product lines.

4. Market share.

5. Profit and loss forecasts.

B. Characteristics of ideal target markets.

1. GNP/capita.

2. GNP/capita growth rate.

3. Size of target market.

C. Identify, assess, and select target markets.

1. Market contact programs.

(a) U.S. Department of Commerce.

(b) World Trade Centers.

(c) Chamber of Commerce.

(d) Company's bank.

(e) State's export assistance program.

(f) Small Business Administration.

(g) Small Business Development Center in local university.

(h) Export hotline directory.

2. Market screening.

(a) First screening-basic need potential.

(b) Second screening-financial and economic forces.

(1) GNP/capita growth rate.

(2) Size of target market.

(3) Growth rate of target market.

(4) Exchange rate trends.

(5) Trends in inflation and interest rates.

(c) Third screening-political and legal forces.

(1) Import restrictions.

(2) Product standards.

(3) Price controls.

(4) Government and public attitude toward buying American products.

(d) Fourth screening-sociocultural forces.

(1) Attitudes and beliefs.

(2) Education.

(3) Material culture.

(4) Languages.

(e) Fifth screening-competitive forces.

(1) Size, number, and financial strength of competitors.

(2) Competitors' market shares.

(3) Effectiveness of competitors' marketing mixes.

(4) Levels of after-sales service.

(5) Competitors' market coverage-Can market segmentation produce niches that are now poorly attended?

(f) Field trips to best prospects.

(1) Department of Commerce trade mission.

(2) Trade missions organized by state or trade association.

D. Export marketing strategies.

1. Product lines to export.

2. Export pricing methods.

3. Channels of distribution.

(a) Direct exporting.

(b) Indirect exporting.

4. Promotion methods.

5. After-sales and warranty policies.

6. Buyer financing methods.

7. Methods for ongoing competitor analysis.

8. Sales forecast.

VII. Export financial plan.

A. Pro forma profit and loss statement.

B. Pro forma cash flow analysis.

C. Break-even analysis.

VIII. Export performance evaluation.

A. Frequency.

1. Markets.

2. Product lines.

3. Export personnel.

B. Variables to be measured.

1. Sales by units and dollar volume in each market.

2. Sales growth rates in each market.

3. Product line profitability.

4. Market share.

5. Competitors' efforts in each market.

6. Actual results compared to budgeted results.

III. Executive summary-

The Moldovan Cellular Phones, Inc. is a New York-based corporation that will acquire inventories of in demand cellular phone products such as headsets, chargers, and ear pieces, as well as the phones with the intent to distribute them to Moldova wholesalers overseas and to set up a telecommunications network in Moldova. Cell phones in Moldova are rapidly overtaking land phones as many cellular phones now provide Internet access and cell phone computers. SMS, MMS and broadband are becoming standard features on cell phones. Nonetheless, mobile phones are expensive in Moldova and not everyone can afford them. Furthermore, although Moldova has made great lines in improving their technology in the telecommunications area, there is still line for improvement. Cellphones need to be upgrade to a 4G level. At the moment they are ranked at 2G and 3G. Moldovan Cellular Phones can find their niche by exporting refurbished cheap mobile phones to Moldova, introducing cheap policies and incentives, and providing Moldavians with quality mobile phones at competitive prices.

Problems with doing business in Moldova include sporadic and ineffective enforcement of the law, economic and political uncertainty, and government harassment and interference. These tend to discourage foreign direct investment, but ways may be found around them. Moldova is open to U.S. products and foreign business. It has relaxed its rules on importing goods and is encouraging to foreign businesses.

As regards the cellular phone industry, conditions in Moldova seem to be promising, too. Because Moldova is geographically a small country, telecommunications companies managed to achieve good coverage in both wired and wireless communications infrastructure. Landline is almost always available but most people -- and especially recently -- have evidenced huge interest in mobile phones. Mobile communications infrastructure is fairly well developed and the amount of mobile subscriptions are growing extremely fast. This is particularly so compared to the landline. High prices are a concern there in the mobile industry. This is where Moldovan Cellular Phones can export its services and undercut competitors.

IV. Introduction-Explains why the firm will export.

The firm will export cellular phones to Moldova. This is because Moldova is one of the poorest countries in Europe that is struggling with technology and with many areas of their life. Moldova, in fact, is said to be the poorest country in Eastern Europe -- and Eastern Europe is notoriously poor.

Our reason for exporting cellular phones and introducing cheaper telecommunications incentives is twofold:

1. Moldova experiences a relatively high performance level in telecommunications but their service is still expensive. The observation that there is an interest in the product, despite their poverty levels, is encouraging. We can profit from that interest by introducing a company that can promote itself by selling cheaper phones and cheaper plans.

2. Moldavians are looking for ways to improve the microeconomic standards of their country and the way that this can be done is largely through technology. Exporting computers or farm equipment -- which was another thought - will be too complex and expensive an enterprise for us. Cellular phones are attractive and fundamental wherever they are sold. Many Moldavians lack phone service. The cellular phone is more convenient and transportable and less costly in price. It can help Moldavians not only communicate in private spheres but also help them in developing their economic structure

Our intent then will be to produce affordable simple cellular phones that range in complexity and that Moldovans can use both in their homes and in their work.

V. Situation analysis.

Moldova is reputed to be the poorest country in Eastern Europe. Since the breakdown of the former Soviet Union, its trade has had a serious downfall. Drought and civil conflict has exacerbated the poverty, and the Russian ruble devaluation of 1998 plunged sharply further sending the country in decline. Since 2000, the country has experienced somewhat of a growth and it has made progress in economic reform since its independence. The government has liberalized most prices and has phased out subsidies on most basic consumer goods. A stock market opened in June 1995. Moldova has also made great strides in curbing its previous enormous inflation level. After the National Bank of Moldova increased its purchases on the foreign exchange market, the leu stabilized in November -- December 2004 at 12.00-12.50 to the U.S. dollar.

The country has come a long way in developing a viable free-market economy. The country recorded its fifth consecutive year of positive GDP growth in 2004, with year-end real GDP growth of 8%. This growth is impressive considering that, prior to 2000; Moldova had recorded only one year of positive GDP growth since independence.

Problems with Moldova include clumsy government bureaucracy, corruption, and political and economic instability. These tend to discourage foreign direct investment, but ways may be found around them.

According to the Global Competitiveness Report,[13] the biggest challenges for conducing business in Moldova include access to finances, as well as the government corruption and the clumsy bureaucracy (see Appendix, fig. 1). Nonetheless, Moldova is attracted to foreign business, particularly those form America and these problems can be surmounted.

In the meantime, the country has come a long way in developing a viable free-market economy. It recorded its fifth consecutive year of positive GDP growth in 2004, with year-end real GDP growth of 8%. This growth is impressive considering that, prior to 2000, Moldova had…