Trading Opportunities in a Recession Presentation to: Waterford City CEB WORKSHOP By: John Whelan CEO Irish Exporters Association
Introduction>> VIEWS NOW ● Major down turn in Ireland, also in EU and USA ● Businesses more optimistic about export sales growth than home market. ● Services exporters more optimistic than manufacturing sector. ● Labour costs still the main concern, but energy costs a close second concern. ● Broadband access and cost no longer a concern.
Did you suffer bad debts last year?
What are the main causes of late payment?
Do you use credit insurance?
EXPORT OUTLOOK ● Trade barriers still high in E.U. countries. ● But mainland Europe seen as offering more export opportunities than UK or US, over the next 3 to 5 years. ● In particular new EU 10>>exports to Poland up by 39% in first half of ● Also Asia>>exports to China up 33% in first half of ● Outsourcing continuing to rise.
Business Impact Analysis ● Quick and straightforward self evaluation ● Five areas for consideration 1. Competitors 2. Suppliers 3. Product / Service 4. Organisation 5. Customers ● Impact High or Low on your business in a Recessionary times
COMPETITORS >IMPACT< Low High BUSINESS >IMPACT< Low.1.
SUPPLIERS >IMPACT< Low High COMPETITORS >IMPACT< Low High BUSINESS >IMPACT< Low.
PRODUCT- SERVICE >IMPACT< Low High SUPPLIERS >IMPACT< Low High COMPETITORS >IMPACT< Low High BUSINESS >IMPACT< Low.1
PRODUCT/SERVICE >IMPACT< Low High SUPPLIERS >IMPACT< Low High COMPETITORS >IMPACT< Low High ORGANISATION >IMPACT< Low High BUSINESS >IMPACT< Lo
PRODUCT/SERVICE >IMPACT< Low High SUPPLIERS >IMPACT< Low High COMPETITORS >IMPACT< Low High ORGANISATION >IMPACT< Low High CUSTOMERS >IMPACT< Low High BUSINESS >IMPACT< Low.
PRODUCT/SERVICE >IMPACT< Low High SUPPLIERS >IMPACT< Low High COMPETITORS >IMPACT< Low High ORGANISATION >IMPACT< Low High CUSTOMERS >IMPACT< Low High BUSINESS > IMPACT< Low > <Hi
● Many companies find difficulties expanding into foreign markets ● Strategic partnerships may be the answer ● Simple contractual agreement; Cross-distribute products, or service back up Production agreement, sharing of production facilities Sourcing or Bulk buying agreements Sharing R & D facilities STRATEGIC PARTNERSHIPS
● Advantages >Access to distribution >Greater economies of scale >wider product range >Reduced risk >Cheaper finance >New markets >Shared market knowledge STRATEGIC PARTNERSHIPS>>cont’d
● Main Considerations 1. Clearly establish goals expected from the Partnership 2. Conduct market research for potential partners. 3. Identify suitable Partnership vehicle 4. Examine financial options 5. Appoint a negotiator, to work on a short list of candidates 6. Agree main roles of each partner 7. Conclude a legal agreement STRATEGIC PARTNERSHIPS>>cont’d
Thank You John Whelan Chief Executive Officer Irish Exporter Association