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Export Readiness

In: Business and Management

Submitted By victoryroarglory
Words 742
Pages 3
Export Readiness Analysis 2XU is an Australian sports apparel company established in 2005, the firm employs 45 full time employees making the firm a SME (Small and Medium Sized Enterprise) (Global Execellance, 2013). The firm specialises in producing compression clothing in the growing international sportswear market, which is worth US$244 billion (Heathcote, 2013). 2XU began as born global, with goals to establish itself as a global brand from conception. These goals were achieved in 2007, with direct exports to distributors based in the United States. Since, 2007 the firm has established itself as a gloabal brand with exports to 57 countries world wide (Heathcote, 2013). A crucial aspect of 2XU establishing itself as an international firm, has been the successful application of Export Market Development Grants from Austrade totalling $500,000 (Australian, Business Financing Centre, 2013); with the EMDG, reducuing the initial costs of exporting. While 2XU, has already established itself as a global firm, the company needs to continue its expansion into new markets, if it is to achieve is goal of $1 billion of sales within the next 10 to 15 years. Therefore it must be asked, is 2XU is ready to begin exporting to a new market?

Export readiness measures how prepared a firm is to conduct its business within a new export market. An Export ready firm must fufill three criteria, it must have; a competitive advantage, suitable and adequete resources and have a clear strategy and commitment. When 2XU began exporting, its competitive advantage was their technological and innovative product line and their successful implementation of both an online and overseas distribution network which gave them a first-mover advantage,. However, due to the rapid growth in the sports apparel industry particularly with compression garments, 2XU is unlikely to have a first-mover...

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