Effective Trade Promotion Organisations

Effective Trade Promotion Organisations Effective Trade Promotion Organisations

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What is the Role of a TPO in TodayWhat is the Role of a TPO in Today’’s s International Business Environment ?International Business Environment ?International Business Environment ?International Business Environment ?


Enterprise Export Enterprise Export Competitiveness Competitiveness IssuesIssues

Market related IssuesMarket Kno ledge• Market Knowledge

– Information about foreign markets & market opportunitiesnformation about foreign markets & market opportunities–– Market entry strategies Market entry strategies

• Overseas Networks and Contacts– Information on overseas buyers & distributors Information on overseas buyers & distributors –– Opportunities to meet and network with overseas businessmenOpportunities to meet and network with overseas businessmen–– Know to conduct business with foreign enterprisesKnow to conduct business with foreign enterprisesg pg p

• Export and International Marketing Expertise– Well versed onWell versed on export transaction processexport transaction process–– Updated on marketing expertiseUpdated on marketing expertiseUpdated on marketing expertiseUpdated on marketing expertise

• Trade Finance– Access to competitive trade financingAccess to competitive trade financing

Availability to trade financing facilities and instrumentsAvailability to trade financing facilities and instruments


–– Availability to trade financing facilities and instrumentsAvailability to trade financing facilities and instruments–– Sound knowledge in sourcing for trade facilitiesSound knowledge in sourcing for trade facilities

Enterprise Export Enterprise Export Competitiveness Competitiveness IssuesIssues

Product Development Issues

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Product Development Issues • Product Acceptability

– Fully aware of quality requirements and standards in foreign marketsFully aware of quality requirements and standards in foreign markets–– Understand overseas customers tastes and requirementsUnderstand overseas customers tastes and requirements–– Understand overseas customers tastes and requirementsUnderstand overseas customers tastes and requirements

• Continuous Value Adding on Existing Products – Knowledge in processingnowledge in processing

Access to suitable equipmentAccess to suitable equipment–– Access to suitable equipmentAccess to suitable equipment–– Effective production processEffective production process

• Product MarketingAbilit t h d t lAbilit t h d t l– Ability to enhance product valueAbility to enhance product value

–– Brand developmentBrand development–– Design application Design application


What TPOs need today ? What TPOs need today ?

Defined Mission

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Strategic focus

Right Products

KnowledgeKnowledge

Resources

Connections/Networks/ Partnership


Mission and TPOsMission and TPOs

Missions among TPO may differ in different countriesMissions among TPO may differ in different countries

Singapore Trade Development Board (until 2002)– to contribute to Singapore’s Prosperity through trade expansiong p p y g p

MATRADE - To Develop and Promote Malaysia's Export to The World

Thai Department of Export Promotion (DEP) - to increase national income by boosting the economy through exports

I t ti l E t i Si (2002 d ) T h l SiInternational Enterprise Singapore (2002 onwards)- To help Singapore-based companies grow and internationalise successfully


TPO Strategic FocusTPO Strategic FocusTPO Strategic FocusTPO Strategic Focus

Short and medium termShort and medium term

Foresight

Flexibility and Adaptability

Strategic Options


TPOTPO’’s STRATEGIC OPTIONS s STRATEGIC OPTIONS

M k t P d tMarketPenetration

ProductDevelopmentExisting

Markets

Market Development DiversificationNew

Markets

Existing New


gProducts Products

M k t P t ti St t iM k t P t ti St t iMarket Penetration StrategiesMarket Penetration Strategies

Expand Existing Market ShareConsolidation TechniquesqAssess Production CapacityCompetitive AnalysisTrend of marketShort term activity


Market Development StrategiesMarket Development StrategiesMarket Development StrategiesMarket Development Strategies

Identify Potential New MarketsAssess Characteristics of Market Identify Market Entry IssuesBuild Awareness and CapacityInitial Promotion Activities Short to Medium term result


P d t D l t St t iP d t D l t St t iProduct Development StrategiesProduct Development Strategies

Product Market Study Assess Product Acceptability Market receptivenessProduct Development Support Medium to Longer TermMedium to Longer Term


Di ifi ti St t iDi ifi ti St t iDiversification StrategiesDiversification Strategies

Most ambitiousMost ambitiousDetail Market and Product StudyAssessment of industrial and HRD infrastructure T t i d t iTarget industries :-

Low technologyMedium technologyHigh technology

Case Studies : •Malaysia’s move into electronics;S f•Singapore’s development of precisions engineering

• Singapore’s move into bio-technology


Time Frame ContextTime Frame Context

Short Term Medium Term Longer term

Market penetration

Market Development

Product Development

Diversification


Therefore it is important for a Therefore it is important for a TPOTPO to know what is the to know what is the current situation as well as the potential situation current situation as well as the potential situation developingdevelopingdeveloping. developing.

This will help in planning and even changing strategy This will help in planning and even changing strategy and s bseq entl theand s bseq entl the t pe of ser ices to offert pe of ser ices to offerand subsequently the and subsequently the type of services to offer.type of services to offer.


Providing The RightProviding The Right ““ProductsProducts””Providing The Right Providing The Right ProductsProducts

Providing “clients” the right products

Assess the needs of “clients” – is there a mechanism ?

Relevancy of products in a changing environment

Developing new services


Defining yourDefining your ““clientsclients””Defining your Defining your clientsclients

Generally enterprises are in the following situations :-

• Export Starting Enterprises aware of export opportunities but need capacity buildingEnterprises aware of export opportunities but need capacity buildingMainly SMEsMainly SMEs

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Mainly SMEsMainly SMEsAim to assist SMEs on the way to become viable exportersAim to assist SMEs on the way to become viable exporters

• Export Capable Enterprises that have done some export ordersEnterprises that have done some export ordersAssistance in structuring a proAssistance in structuring a pro--active international marketing strategyactive international marketing strategy

• Export ReadyExport Ready Enterprises already exportingEnterprises already exportingLooking at other markets and even higher value products Looking at other markets and even higher value products Assistance in market and product developmentAssistance in market and product development


Possible collaboration with other enterprisesPossible collaboration with other enterprises

Managing your ClientsManaging your ClientsManaging your ClientsManaging your Clients

Do you know your clients needs ?

Are your services relevant ?

Off l t k t d h iOffer complete packages not ad hoc services

Therefore does your TPO :Constantly reach out to enterprises ?Constantly reach out to enterprises ?

Have an institutionalised form of networking with enterprises ?Have an institutionalised form of networking with enterprises ?

Therefore does your TPO :-

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Have advisory committees ?Have advisory committees ?

Conduct quality surveys ?Conduct quality surveys ?


Maintain a client management database ?Maintain a client management database ?

Knowledge Management and the TPO Knowledge Management and the TPO g gg g

To be effective a TPO must have the following depositary ofknowledge within its domain:-

• Current International Business and Trade Environment Developments • Characteristics of Overseas Markets

K l d f L l E t• Knowledge of Local Exporters• Understand International Marketing • Aware of Industry Trends y• Competent in International Exhibitions and Trade Fairs• Working with International Organisations


ResourcesResources StaffStaffResources Resources –– Staff Staff

St ff th t i t tStaff are the most important resource

Training and skills• Structured training programsStructured training programs•• Practical training Practical training

Identify skill sets needed

AAssess gaps

In-house and external training

Right corporate valuesRight corporate values

Learning Organisation


ResourcesResources –– ICT systemsICT systemsResources Resources ICT systems ICT systems

InternalInternalInternal Internal Databases = Knowledge management system Access available by all staffFacilitates communication among staffFacilitates communication among staffImportant for decision making

E t lE t lExternalExternalAllows enterprise access to information Channel information to enterprises about TPO’s servicesDevelop an intra communityDevelop an intra-community


Connections/Networks/ PartnershipConnections/Networks/ PartnershipConnections/Networks/ Partnership Connections/Networks/ Partnership

Agencies under the Ministry of TradeAgencies under the Ministry of TradeOther relevant government agenciesChambers and Business Organisations Industry Associations Banks and Financial Institutions AcademiaAcademia Country NetworksMajor Export EnterprisesTPOs of other countriesInternational Organisations


THANK YOUTHANK YOUTHANK YOU THANK YOU


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Effective Trade Promotion Organisations