Evaluating Influential Factors using Exploratory Analysis in Selecting Product Export Strategy in Food Industries

Managers who are involved in export marketing firstly tend to decision making on how to enter market in order to expand their market abroad. This study aims to investigate the influential factors that effect on selecting method of entering foreign market in an export company. According to analytical review, research hypotheses were made. In this study, a survey was conducted on 72 food companies with export in order to reviewing entry method choice. Exploratory analysis and second order confirmatory analysis were conducted using software SPSS and SmartPLS to identify and test key and effective factors, based on data of this sample. The results of the test indicate that all features and factors of the product, market and company are effective on selecting export strategy. That among these three factors the effect of product features is more. Also, there is a high correlation between complexity of product and management willing about business growth objectives with direct strategies. As a result, it is suggested that if the complexity of the product and/or management willing about business growth objectives are high, companies should use direct exports.

Keywords:

Export Strategies , Direct Export , Indirect Export , Food Industry