By focusing in the local market only, U.S. companies ignore 95% of their potential customer base.
According to the U.S. Census department the current population of the U.S. exceeds the 315 million people, but the world population exceeds the 7 billion mark, or 22 times more than the U.S. At the same time according to The World Bank only 14% of the U.S. GDP is derived from exports, well below that one of countries like China (31%), India (25%), and Russia (31%). By focusing on the domestic market, U.S. companies may be forfeiting one of their best potential tools to grow their business, and improve their profitability.
The exporting process it is fundamentally no different from the standard Ansoff growth model, and companies can expand from their existing products and services, by growing into new markets (Market Development), new products (Product Development), or completely new products and markets (Diversification). By…
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