Assessment of Challenges in Export Marketing: The Case of Ethiopian Vegetable and Fruit Commercial Growers

Abstract

Globalization forces companies to internationalize their operation in the global market. Exporting plays a vital role in economic development of a nation as well as for the development of the particular exporting company. Although, the benefits derived from exporting in an increasingly globalized marketplace are enormous, but for many companies, exporting is constrained by numerous challenges. The purpose of the study was to assess export marketing challenges of Ethiopian vegetable and fruit commercial growers. The study investigated 20 Ethiopian vegetable and fruit commercial growers and 8 stakeholders with questionnaires and interviews. The research utilized a mixed research design and analysis techniques specifically concurrent embedded approach. It is found out that the Ethiopian vegetable and fruit commercial growers export volume and sales lacks consistency and constrained by different challenges. Of the major challenges which were classified as internal barriers and external barriers, macro environmental barriers highly affected the growers. Local investors were highly affected by both the internal and external problems whereas foreign and joint ventures are affected in some extent with those problems. Less experienced growers were highly affected by the export problems than those who are more experienced. Management commitment problem; technological advancement problem; financial; lack of accessible transport system; low awareness of stakeholders; seasonality of Ethiopian supply; shortage of cargo; shortage of infrastructure; government bureaucracy; lack of potential markets; and shortage of inputs were identified as problems for the vegetable and fruit export. Therefore, to minimize these problems creating enabling policy environment; fair and competitive air freight cost; the growers to incorporate challenges in their export marketing strategy; the government to explore new markets, provide technical supports and long-term loans to growers; to create new competitive input suppliers; integration of stakeholders of the sector; and to recruit skilled manpower are forwarded as recommendations.