Accessing new markets: exploit opportunities, minimise risks
Trading and economic ties with the US are fraught with uncertainty and confidence in the American market has sustained lasting damage. Hence the pressing need for Swiss companies to start putting feelers out towards new markets. Diversification is the key to ensuring future viability in the current economic climate. SERV can help with that as a reliable partner.
The Swiss export industry is currently facing serious economic upheaval. Trading and economic ties with the US are fraught with uncertainty, considerably impacting competitiveness in a significant export market.
It is really important now that companies remain calm, review their market strategies and look to new partners and sales markets. “Companies need to be more flexible than ever these days and seek new opportunities in alternative markets,” says Bohumil Matousek, client advisor and credit insurance expert for large enterprises and SMEs at SERV. “Diversification is the watchword for spreading risk and ensuring future viability.”
What are the risks when entering new markets?
There are many risks when entering new markets: political instability, potential payment defaults, logistical challenges and other unforeseeable factors. “There can be a lot of groundwork involved in market entry and it’s important to be aware of potential risks in advance and protect yourself against them,” explains Bohumil Matousek.
“With SERV as a partner, exporters can ensure they don’t have to face the risks of conducting international business alone,” continues Bohumil Matousek. “SERV assumes risks that private insurers don’t normally cover. SERV provides a solid basis for market entry with lower risk through its insurance products and reliability.”
How can SERV help companies with market diversification?
As times become more challenging, the more important it becomes to have reliable partners on board early on. “SERV should be included in the planning at the start of the market development process,” advises the SERV expert. “Because SERV has extensive experience in the new target markets and often knows potential buyers. Our early involvement and expertise allow the exporting company to make well-informed decisions from the outset and enter negotiations on a strong footing. SERV insurance also provides access to better priced financing, which in turn makes Swiss bids more competitive.”
As an institution under public law of the Swiss Confederation, SERV insures the export transactions of Swiss companies in an economically viable manner on the basis of subsidiarity. “Not only do our products provide cover against payment defaults, they also help ensure liquidity to support the market entry financially,” explains Bohumil Matousek.
“Our goal is to strengthen the Swiss export industry to compete internationally and retain jobs in Switzerland. It’s when markets are collapsing and uncertainty is everywhere that we can really make a contribution to companies staying successful and entering new markets,” concludes Bohumil Matousek.
