One of the key components of a well-defined export strategy deals with the method of export.
Many firms make the mistake of assuming a foreign market is a clone of the domestic one.
Such an assumption has cost firms millions of dollars because they tried to enter the global economy without a well-defined export strategy. One of the major causes of dissatisfaction in the global economy is attempting to export using an incorrect or inappropriate method. Just as one would not drive a nail with a screwdriver, a firm should not attempt any exporting until the choice has been thoroughly investigated and the export strategy has been defined, refined, and understood by all key players in the firm. A market analysis is normally done prior to the first export to a country. Each exporting technique entails risk, and each firm needs to assess the risks involved in their industry and then develop an export strategy to best manage the associated risks.