An export strategy for conquering the UK market requires an implementation plan that enables a firm to engage in international trade and overcome all the trade restrictions in the target country. Not only does the export strategy foster growth, but it also takes into account all the cross-border collaborations that are risk-free and feasible in the UK market. One of the appropriate export markets for the Asian firm in Sweden. The export strategy herein will address international trade theories, trade restrictions, logistics, transport modes, and strategic decisions concerning the Sweden commerce environment for foreign firms.
The Appropriateness of Sweden Market
The Governing Board should be aware of the recent economic crisis that destroyed the financial platforms for many countries in the EU. However, Sweden avoided the financial crisis through watertight and strong economic foothold. According to OECD Economic Surveys (2013), the country’s GDP is expected to grow by 2.5 percent by the end of 2015, which is a high A milestone that any EU economic giant could achieve. The nation seeks to reduce unemployment rates, although the current price averages 8.5 percent.
The company intends to concentrate on fabrication and engineering services. Schön (2012 ) argues that the Swedish economy has grown over the years to become one of the advanced producing nations in engineering. The organization also aims to take part in efforts by Sweden to eliminate unemployment rates. It Will not only employ local people with the export-entry strategy but will also match the growing need for services in tandem with advanced information communication technology.
The export will feature a direct strategy for manufacturing and engineering products. The nation has a strong demand for resources and a long history in the fields of mining, shipbuilding, and IT. The products must be consistent with sustainability and earth-friendly innovations, and price and quality competitive (Schön, 2012). Also, the export policy accepts the hypotheses of foreign exchange.
Suitable International Trade Theories
The theory informed the process of developing an export strategy for Sweden of international trade, which includes the methods of country similarity and the product life cycle. Being an Asian requires a plan that features expansion to the competitive global market. The program also recognizes the flows of trade, which include customer loyalty, advanced technology, and quality.
The concept of intra-industry trade is the basis of country similarity theory (Gandolfo, 2014). Our organization is targeting Sweden because there are customers in the same stage of growth. The domestic market is increasingly in demand for manufacturing and engineering, while Sweden is looking for exports that can provide consistent supply in the same area. The per capita income for our parent country and Sweden may be dissimilar. Still, there is a considerable chance of success where products will have unique names and reputation once they hit the market.
Product life cycle theory acknowledges the different stages of product development (Kerr and Gaisford, 2007). The export strategy for our organization will feature a manufacturing and engineering operation in the home countries. The firm will produce goods in the parent country and transport them for repackaging to Sweden. The production process in the home country features low-cost strategies when compared to putting up manufacturing and engineering plants in Sweden.
Coping With Instruments of Trade Protection in Sweden
The firm intends to overcome new import duties and tariffs in the Swedish market through provision rates. The financial crisis in most of EU market elicited trade restrictions in a bid to protect domestic firms. Sweden was immune to the financial crisis in 2008-2009, and that will enable the organization to take advantage of the Open Trade Gate (Broz and Werfel, 2014). The platform will give the firm a chance to strengthen its capacity and ability to trade in the foreign market. Additionally, The Swedfund will offer a crucial precaution against high tariffs and customs duties that define trade restrictions for international firms. According to Gawande, Krishna, and Olarreaga (2012), Sweden offers risk capital and financial support for Asian firms besides the EU organizations. An export strategy is a form of investment in a promising foreign market. The trade promotion and investment tools will create a robust new market for our firm and boost the economy of Sweden.
Pricing strategy is based on duty, VAT, and minimum threshold. The import duty 48%, VAT of up to 25%, and the minimum threshold waiver of SEK1300 are applicable (Tullverket.se, 2015). The firm will also consider excise duties and additional customs fees during examination and verification outlets. The organization will contend with local competition from companies such as Alten, Dynapac, Volvo, and Tranter.
Trade Restrictions Coping Approaches, Promotion and Investment Tools
The free trade agreement will provide safe exploitation of marketing opportunities in Sweden (Svensson, 2012). The free trade agreements negotiation will occur between the investors in the organization and the relevant government bodies. The agreements will acknowledge the taxation and commerce policies and legislations involving exportation. The cross-border collaboration will increase growth prospects because of the open trade-oriented economy.
Exporting will overcome some risks prevalent in the Swedish market. The country has low interest, and a negative policy rate might affect the profit margins (Boyer and Schuschny, 2010). The purchasing power of the manufacturing and engineering consumers is high, but the country has limited opportunities for growth due to stiff competition from rival EU firms. The Swedish IT market is still slow, and that might offset the logistics of exports during the advertisement, promotion, and transportation of the export products.
Our organization’s objective is to offer on-time delivery and planning of the export products. The cargo that will be transported by sea, air, rail, road, and train will be second-to-none services will be reliable. The manufacturing and engineering products in Sweden market will be open to the documentation on all inbound clearances processes. Coordination of scheduling and reliable transportation and proactive management will give rise to a firm that saves time and cost.
The ultimate modes of transport that will be used include road, train, sea, and air. Sweden assigns sea transportation for international firms, but the organization will negotiation will negotiate to have air, rail, and road transport to achieve its timely logistics objectives (de Jong et al., 2012). The sea transport will establish docking agreements with Port of Stockholm, Goteborg, Trelleborg, and professionals such as HML shipping to create a network that can penetrate the country fast. The high-speed rail and air transport will increase coordination within the Swedish historical marker and increase the capacity of the organization to deliver products on a timely basis. The business culture of Sweden features the utmost punctuality (Svensson, 2012). Therefore, proper schedules and plans will be complemented with reliable modes of transport.
The information and technology level of Sweden is expected to grow by 4.1 percent by 2019, and that will render the exportation platforms highly lucrative (Gopal, 2008). There are a tremendous support data-network infrastructure, real-time business services, and cloud computing that will complement the transportation and sales logistics. Sweden has been ranked as a leading economy in digital growth in the EU. Management and tracking of exported products will be trouble-free as outsourcing, virtualizing, and moving services become real in the foreign market (Organisation for Economic Co-operation and Development, 2002). Information and technology provide reliable services for international or domestic exportation. In the light of IT, infrastructure in the company will align telecommunications, transportation, and information services relevant structures in the country.
Incorporating Strategic Decision-Making
The organization aims to implement the export strategy using ethical practices in strategic decision-making. The ethical practices will feature environmental sustainability, anti-corruption, and gender equality in all strategic operations.
The improving working environment will be as important as integrating sustainability approaches during export. Every Swedish firm is tasked with corporate social responsibilities to manage major activities (Høgevold and Svensson, 2012). The government requires local and foreign firms to adopt recycling, sustainable manufacturing to reduce environmental carbon footprint. The strategy is subject to Climate Counts that monitors leading firms such as Electrolux.
Gender equality will play a role in administering ethical work practices; parents will be capable of delivering care to their children through gender-based working schedules. The workers will assume work and family responsibilities and occupy leading positions in the chain of command. Sweden is a fourth nation in the world to implement gender equality practices as required by the Global Gender groups (Olah and Gahler, 2014).
Fighting corruption will be a crucial factor, and the company will not participate in any illicit transport during dispatch, transportation, or custom checking of its products. Sweden has low corruption cases, and the situation helps Swedish firms to perform better in the international market than other foreign countries (Rothstein and Teorell, 2015). The corruption-free export trade will promote the global operation and uplift the image of the organization to the Swedish officials as well as target consumers. The conventions of the European Council prohibit firms from participating in illicit international business relationships.
Sweden makes the rules clear for firms that want to enter the export market. The organization will straightforwardly implement the export strategy and increase relations than can reduce the unemployment rates. The welfare of Swedish people is crucial, and that calls firms to have export entry strategies that can protect and serve the economy accordingly. The logistics, risks, IT infrastructure, and transport modes were highlighted concerning the current situation in Sweden. The plan highlighted is feasible and fit for implementation.
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