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Step 1: Considering exporting
You are here:Step 1: Considering exporting >The various environments you will encounter abroad > The physical environment


 

The physical environment

 

Although the physical environment is not considered one of the core components of the SLEPT factors, it is an environment that can impact upon your success in exports and consequently needs to be considered.

A country's territorial size, geographical location, natural resources, climate, rivers, lakes and forests constitute its physical environment. The physical environment influences political and economic activities, shapes cultural characteristics such as language and religion, and determines land usage, transportation, and commercial flows.

When planning international marketing activities, the possible impact of the physical environment should take into account. For example:

  • Population distribution will be affected by topography (i.e. a country's rivers, mountains, deserts, etc.) and climate - people tend to settle where the climate is temperate, and there is an adequate supply of water.
  • Certain climatic conditions may dictate adaptations to the product - some glues and oils, for example, will not function in very cold climates.
  • Climate should also influence the arrangements made in respect of packaging (in the marketing context) and protective packing for the purposes of safeguarding the product while it is in transit or in storage. Products which are particularly vulnerable to climatic conditions, are those that are adversely affected by extremes in temperature or excessive humidity changes (fruits being transported to hot climates or across the equator, for example).
  • Abnormal weather conditions (e.g. typhoon season in Asia) can disrupt the transportation of export products while unforeseen changes in the weather can threaten companies which produce seasonal goods.
  • Topography will influence the routing of goods and the choice of transport mode, which in turn will affect cost and thus impact on the price offered to the buyer.

 
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Step 1: more information

Step 1: Considering exporting
      The various benefits of exporting
      The various drawbacks to exporting
      The difference between domestic and export marketing
      The various environments you may encounter
            dotThe sociocultural environment
            dotThe legal environment
            dotThe economic environment
            dotThe political environment
            dotThe technological environment
            arrowThe physical environment
      The various barriers you may face

© Cornelius Bothma

More information on Step 1
Learning to export...
The export process in 21 easy steps
Step 1: Considering exporting
Step 2:Current business viability
Step 3:Export readiness
Step 4:Broad mission statement and initial budget
Step 5:Confirming management's commitment to exports
Step 6: Undertaking an initial SWOT analysis of the firm
Step 7:Selecting and researching potential countries abroad
Step 8: Preparing and implementing your export plan
Step 9: Obtaining financing for your exports
Step 10: Managing your export risk
Step 11: Promoting the firm and its products abroad
Step 12: Negotiating and quoting in exports
Step 13: Revising your export costings and price
Step 14: Obtaining the export order
Step 15: Producing the goods
Step 16: Handling the export logistics
Step 17: Export documentation
Step 18: Providing follow-up support
Step 19: Getting paid
Step 20: Reviewing and improving the export process
Step 21: Export Management
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