Export diversification has been around for the last 50 years, and it has received considerable attention in development literature over this time for its role in the improvement of the economy of developing countries. When executed properly, it has a high potential of propelling businesses to success, thus improving industry operations and contributions to the overall economy, which has made it such an impactful force in many other industries as well.
To summarize its impact on industries and businesses, perhaps the best illustration for this phenomenon is to realize that developing countries have moved to diversify both their export products and export destinations to expand not just in their immediate dealings but also to factors that may not seem connected to their business in the first place. This has sustained their part in the economy over the last 5 decades, and has given rise to the mantra of “Diversify or Die” – essentially meaning that a business is doomed to fail lest they open themselves up to other factors that go beyond their initial scope.
The “Diversify or Die” mantra has become a staple in many export companies, which can mean that this strategy is highly useful and important when it comes to finding new opportunities both in and outside of the industry. It is also quite critical for spreading out the potential risks associated with the ever-changing international trade situations, especially at a time when tensions between countries are magnifying and affecting other industries like travel and hospitality.
Export Diversification is a logical way of dealing with uncertainties in the industry’s market, achieve growth, and reap the benefits of trade liberalization – so much so that businesses run the great risk of failing in their export and logistics efforts if they do not choose to explore the “Diversify or Die” mantra, and in extension, Export Diversification.
Here are the five keys that you need to consider if you want to successfully diversify your export business, as seen in this infographic by Alba Logistics.