Bolivia, as the poorest country in South America, can gain a lot from international trade. It is an important factor for a country to build prosperity and gain economic growth and thereby reach a higher standard of living.
But for a company to succeed in the international market is a demanding task. Both internal and external factors that influence a company’s competence need to be taken into consideration. This study deals with two Bolivian wooden door producers’ possibilities to export to the Swedish market.
The demand of tropical wood products is expected to increase and the Bolivian wood industry has been identified as an export industry of the future. Another thing in favor for the Bolivian export is the fact that the country is number one in the world when it comes to sustainable management of forest resources. This gives the companies the possibility to offer an environmentally friendly and unique product and thereby create competitive advantages. There are though areas that need improvement. One of the most important improvement areas for both of the companies is marketing and understanding what the customers needs. They need to keep the costumer in focus in all of their activities and learn how to promote their products advantages.
The facts that both the studied companies have earlier experience in export and a high level of motivation support the possibility to succeed in this matter. But, these factors are not enough for the studied companies to succeed in export. The result of this study also shows that the instable situation in the country results in financial problems and lack of trust. Therefore the companies must focus on building trust to attract new customers and investors. This should be done by keeping an even level of quality, fulfilling promises and finding ways to reduce the risk for potential investors.
The trend towards more individual and exclusive doors in the Swedish market results in the recommendation to focus on offering a niche product in the middle-price segment. It is also recommended for the Bolivian companies to use some kind of representative to reach the market. A good alternative is to work as a supplier to a door producing partner and help them widen their assortment and in turn get someone present in the market that can work close to the customers.
Source: Linköping University
Author: Rosén, Malin | Lindmark, Monica