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THE Export Support Team Executing Cost-Effective Strategies That Grow Profitability with Sales in Europe The European-American Business Organization, Inc.

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Presentation on theme: "THE Export Support Team Executing Cost-Effective Strategies That Grow Profitability with Sales in Europe The European-American Business Organization, Inc."— Presentation transcript:

1 THE Export Support Team Executing Cost-Effective Strategies That Grow Profitability with Sales in Europe The European-American Business Organization, Inc. (EABO) 1

2 405 Lexington Avenue The Chrysler Building, 37th Floor New York, NY Phone: Contact Information Sven C. Oehme President and CEO John M. Zindar Partner 2

3 EABO Export Services Export Faster with Lower Up-Front Investment EABO can help you export without the costs of building up your own international business development team. We bolster your export efforts, providing you with step-by-step assistance in the entire process. Outsourcing your export development to EABO is a low-cost solution for ramping up overseas business. European-American Business Organization, Inc. 3

4 Why Export? European-American Business Organization, Inc. 95% of the worlds consumers live outside the U.S. The spending power of the EU is equal to the one of U.S.A. Exporting to Europe can double your market potential. Sales abroad can more than make up for slow domestic demand. The dollar has depreciated against many currencies, making your products/services very price competitive. Improve your companys success & profitability. Join the growing number of U.S. Small & Medium-Sized Enterprises (SMEs), which increased by 10% since EABO can give you the right assistance by minimizing costs and speeding up results. 4

5 President Obama in the State of the Union Address on January 27, 2010 We need to export more of our goods. We will double our exports over the next five years. To help meet this goal, were launching a National Export Initiative. We have to seek new markets aggressively, just as our competitors are.* European-American Business Organization, Inc. *Source: New York Times 5

6 Three Pieces of Legislation Already in Progress Small Business Lending Fund: $30 billion Limited to community and smaller banks which devote a higher share of lending to small businesses. A core function of the fund would be offering capital with incentives to increase small business lending. Small Business Export Opportunity Act of 2009 The bill would create a new Office of Small Business Export Development and Promotion at the Small Business Administration, increase the maximum export loan amount and create a grant program that matches funds for expenses incurred by small businesses that are actively working to start or expand export activities. Small Business International Trade Enhancements Act of 2009 This bill would increase the total amount of available trade financing, adjust collateral requirements, and encourage better collaboration on small business export assistance among federal government agencies. 6

7 SMEs & U.S. Exports 97% of U.S. exporting firms are small and medium-sized businesses. Room for Growth: Only 1% of the 27 million businesses in the United States sell overseas. 30% of non-exporting SMEs would sell abroad if they knew how to do it. The EABO team has the knowledge and expertise to provide assistance in each aspect of selling your products overseas. European-American Business Organization, Inc. 7

8 Europe at a Glance The European Union (EU) Single Market: 27 countries with nearly 500 million consumers. Free movement of people, goods, services and capital creates great opportunities. European-American Business Organization, Inc. The Single Currency Euro-Zone: 17 countries with no exchange rate risk. Lower transaction costs. Price transparency. Increased competition. 8

9 European-American Business Organization, Inc. 9

10 The EU Market for U.S. Exports An integrated, open, & competitive market with strong legal & financial structures – like the United States. Diverse markets – wealthy mature & fast emerging. Europeans have disposable income totaling $12 trillion to spend on consumer goods. Favorable Dollar-Euro () exchange rate: Example: 2002: 1,000 units x 1 = 1,000 = $880 TODAY: 1,000 units x 1 = 1,000 = $1,410 Gain market share while the dollar is weak and your products are cheaper for Europeans. European-American Business Organization, Inc. Profitability 60% 10

11 United States – EU Trade Relations Worlds most important commercial relationship. 3% average growth rate for the last 3 years. Europe accounts for 50% of U.S. global profits. EU merchandise imports from USA: $260 billion in 2008.* Chemicals: $47 billion Machinery: $35 billion Agriculture: $14 billion Energy: $14 billion Textiles/Clothing: $3 billion EU services imports from USA: $180 billion in 2008.* European-American Business Organization, Inc. *Source: EUROSTAT 11

12 Market Case Study: GERMANY The largest national economy in Europe, the fourth-largest in the world. 88 million people in an area the size of Montana. High demand for electronics, machinery and vehicles, farm equipment, chemicals, foodstuffs, textiles & metals. Germans possess a strong affinity for U.S. products ($41 billion of U.S. goods purchased in 2008). In the middle of Europe with world-class logistics and transportation. Strategy Example: Germans are responsive to innovation and high technology. The most successful market entrants offer those products. Market Highlight: Germany is by far the worlds premier trade fair location. Of special interest to U.S. firms: Medica, Hannover Industrial Fair, CeBIT (computer expo), Automechanika, ITB Tourism Show. European-American Business Organization, Inc. 12

13 Market Case Study: POLAND A very pro-American, open market & fast growing economy. Beneficiary of EU principle of harmonizing standards of living. Fast rising purchasing power since joined EU in Recent investment in infrastructure: $75+ billion from EU. Strategy Example: partner with Polish firms and participate in EU-funded projects. Market Highlight: 2012 European Soccer Championship (Poland, neighboring Ukraine) – Europes # 1 sports event creating wide variety of significant business opportunities for U.S. firms. European-American Business Organization, Inc. 13

14 Jumpstarting Export Sales EABO Services Preliminary market & competitive analysis to evaluate the suitability of your products or services. Facilitating the understanding of EU markets, supply chains, business procedures, negotiation techniques, etc. Strategic Partnership Search – finding best-fit buyers, distributors, wholesalers before traveling to Europe. Facilitate trade event attendance with pre-fixed meetings. Assistance with EU directives, import-export regulations, product certification, legal and tax concerns, etc. Customized marketing designed to fit the cultural preferences and consumption patterns of your target markets. European-American Business Organization, Inc. 14

15 Benefits of Outsourcing Your Export Activities to EABO Keep focused on your core business. Access skill sets not available internally: Knowledge of local languages, cultures & business customs in foreign markets. Local contacts with distributors, customers & government. Highly specialized sales and marketing experience Gain outside perspective with objective analysis. = Save Time, Reduce Costs, Achieve Profitability Quicker. European-American Business Organization, Inc. 15

16 Client Case Study: Fruit Drink Mixes European-American Business Organization, Inc. 16 Arrange at short-notice meetings with potential partners in Sweden & Finland. Comparative market information & analysis to support 2010 marketing strategy in the Caribbean Basin. Examples of Client NeedsEABO Results Trade show strategy for ANUGA 2009 (Germany) & targeting of attendees. Adaptation & translation of product literature for various European markets. Arrange at short-notice meetings with potential distributors in Belize. 8 meetings with large-scale distributors and importers arranged within 1 week. 20 best-fit meetings with potential partners from 10 countries during ANUGA. Material for 6 European markets fitted to cultural & consumption preferences. 4 strong leads within 3 days, incl. food service suppliers to key resorts. Comprehensive report on 22 countries analyzing relevant market & economic indicators as well as political risk.

17 Client Case Study: Emergency Rescue Kit European-American Business Organization, Inc. 17 Examples of Client NeedsEABO Results Provide EU country with emergency resource products. Design best cost-effective strategy toward goals. Identify, contact and obtain information on potential suppliers of EU-compliant emergency resource products. Outsource the supply of products for kits. Identified product compliance requirements for the EU country. Identified similar products, already in compliance with EU regulations. List of 2 manufacturers and suppliers for each of 33 items including product info and price quotes. Qualified and introduced best-fit suppliers from 3 countries.

18 405 Lexington Avenue The Chrysler Building, 37th Floor New York, NY Phone: Contact Information Sven C. Oehme President and CEO John M. Zindar Partner 18

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