During the last few professional decades for international business there has been a diametrically radical mindset shift in focus to not only provide a product but a better product to stated target audience in the world markets.

The manufacturers today have created a upward gaze and a downward market gaze advantage as they systematically assess the credentials of vendors and create products which satiates the expectations of the buyer fraternity. International business has graduated from profit making as an exercise to stakeholders benefits.

We are rapidly evolving a international business vocabulary which has now emphatically stated that a buyer centric market today does not only champion the cause of market share of world industry leaders but dictates strategic control of international markets by them. Pyhsical assets stand replaced by knowledge assets.
 
The strategic and defined concept of international business has shifted the focus of marketing from maximisation of the profitability curve to managing strategic value oriented partnerships and logically positioning a international firm between its vendors and customers with a defined and explicitly stated aim of creating value and enhancing market value accretions for the customer.

The marketing objectives today are not only simplistic in nature but are also backed by markets ready to experiment and deliver. Today conduct of international business be it through sourcing, exporting, investing or a combination of all three must look at potential country markets, to analyse what are the advantages and disadvantages as also related costs and whether it is well worth the risk for SMEs engaged in exports and still making concerted and diligent efforts in creating viable, profitable and sustainable foreign markets.
 
The first logical step in choosing material export markets is to establish the key factors which diametrically influence sales and profitability of the product in question. Both the merchandiser and service principal in a recessionary market environment must answer a few questions and qualify to understand a few harsh ground realities.

International business for SMEs must appraise vital aspects of viable market potential, potential competition to Indian SMEs, access to various international markets, understand the implications of service requirements, absorb shipping costs and create a international product fit for their chosen wares.

Our domestic currency is weak and therefore it is logical that our SMEs engage in non price competition by improving quality, delivery mechanisms to world markets and improving after sales service. It is imperative for SMEs to improve productivity and engage in well orchestrated methods of cost reduction. SMEs must consider sourcing outside home country as also trim profit margins coupled with marginal cost pricing. SMEs must ensure that all pricing decisions which are a critical element of marketing mix must reflect costs and competitive factors.
 
SMEs while exporting to world markets and creating a viable sales mechanism abroad will undergo risks of credit, currency, carriage and above all country specific risks.

Channel utilitarian advantage by SMEs must be understood in the right context. International business dictates that supply chain management advantage, filling up of distribution pipeline and the purpose of the marketing channels is to create utility for the customers.

In terms of categorisation of channel utilitarian advantage our SMEs must create market advantages in form of place of market operations, time of market operations, form of market operations and above ensure a documented inflow and outflow of market information.

International competitive advantage has implicit guidelines for Indian companies. An ability to understand strengths, weaknesses, vulnerabilities, financial muscle and diversification ability of international competition must be ingrained in our SMEs. Our companies today understand that developing and designing great products are keys to success in international business.
 
In international business the stated aim of market segmentation has always been to create a unique value offer for as many customers as possible.

The digital signature advantage coupled with value accretions of the internet has ensured that our SMEs can address the concerns, expectations and aspirations of the individual customers. The internet viability and availability has opened immense possibilities for creating a relationship with global customers, potential customers, suppliers and channel members.

In a recessionary market it is imperative to create a win-win relationship with the customer. The market relationship orchestrated by our SMEs must be mutually beneficial. We must understand that if market benefits are one sided market relationships can be both marginalised and threatened.
 
Markets are evolutionary. Technology which was earlier considered as a market enabler has now moved to the next level which is that of a market enabler. In a predominantly recessionary setting for international business, firm centric market strategies may not deliver goods. It is essential to create network centric marketing strategies which generate apart from value accretions also market sustainability.

To commence the aspect of international business which must be substantial it must be backed by fierce market commitment. Business conducted beyond the geographical confines of the country has material connotations which are financial in nature and must be handled adroitely.
 
We have market fortitude, an indominatable spirit and while the recessionary clouds have created overcast skies of ill -fortune the industry at large is fighting back. In international business lies the prosperity curve and in creating of more pronounced continental markets lies salvation.

We cannot ignore both the realism of our current surroundings and the shape of world markets. It is now time to stand up and be counted in the league of nations.

Note:

    * The author is the CEO, NGA Consultancy Services and Consultant, Business Development (International Marketing) Orbit Industries Limited.
    * The views expressed by the author in this feature are entirely his own and do not necessarily reflect the views of SME Times.