Edging out the competition in global markets

Finding and qualifying new overseas customers can take a lot of time and resources. That’s why enlisting experts is a good idea. The following strategies are often useful:

• Join your industry association in your target market and/or in Canada to help you connect with potential customers abroad. This is one of the hidden keys to networking.
• Attend trade shows in your target market, either as an exhibitor or visitor. This helps you introduce your products to many potential buyers in just a few days.
• If you’ve already developed a basic export plan for a target market, contact the Canadian Trade Commissioner Service (TCS). The TCS can help you assess market potential and find qualified contacts.
• International sales are inherently more risky than domestic ones, so conduct careful due diligence on a buyer using EDC Company InSight tool before striking a deal. If non-payment could be an issue, consider using EDC’s Credit Insurance to protect your receivables.

Collecting good competitor intelligence helps you decide whether your product or service can outclass its competition in the target market. You can:

• Consider hiring a specialist consulting firm to analyze potential competitors and the competitive environment in your new market—the price of the report may be a good investment. Your trade association’s publications may also provide useful intelligence.
• Track your competitors’ social media presence to pick up information about their activities and see what their customers are saying about them.
• Examine their marketing materials and annual reports to glean useful intelligence. 
• Attend trade shows to examine your rivals’ products and capabilities.

As you analyze the information, look for evidence that exposes your competitors’ objectives and weaknesses, and reveals any threats to your position. For example, are they:

• Merely trying to maintain their market share or trying to become a market leader?
• Maximizing short-term profits or staying in for the long haul?
• Introducing new products or sticking with their existing wares?
• Using tactics such as deep discounting?
• Struggling with their existing competition?

Understanding their goals and behaviour will help you tailor your own competitive strategies.

A USP summarizes what makes your business and products unique and valuable within your target market. It can be developed from the results of your customer and competitor analysis, and should tell potential buyers:

• How your product can solve their problems
• What unique features and benefits they can expect from your product
• The extra value your product offers over that of your competitors
• How you can support your claims (through testimonials and case studies, for example)

To be truly competitive, it’s important to understand clearly how and why your company and products surpass what other businesses are offering. By developing an effective USP and training your staff to use it as marketing and sales tool, you gain an edge over companies that don’t one.