When an SME lacks international experience and does not have the necessary financial resources to cover the costs of starting its foreign activities alone, it can consider the alternative of doing so jointly with other companies that are in the same situation, trying to create a Consortium or an Export Group.
We can define this alternative as the "grouping of a limited number of companies that do not have their own export structure and, therefore, decide to create a common Export Department for all of them, headed by an International Sales Manager"
The constitution, operation and development of a group of this type is not an easy task, since it is necessary to reconcile the interests of all the companies that make it up.
We will focus on the issues that must necessarily be taken into account.
First, it is advisable (1) that the grouped companies operate in the same sector, (2) that their products can be marketed through the same channels, and (3) that these products are complementary, meaning they do not compete with each other. This maximizes the effectiveness of their efforts.
Other conditions would be that all associates have: a homogeneous level in product quality, supply and service, as well as similar size, economic capacity, corporate culture and willingness to get involved in the internationalization process.
In the phase prior to the formation of the consortium or group, the companies must compile a comprehensive list of all the problems that could arise once it is operational, and agree on how these problems will be resolved when they occur—in other words, have "problem-solving solutions" in place. For example: what will we do if one company in the group sells significantly less than the others but is paying the same fixed fee? The solution could be to lower the fixed fee and introduce a new contribution criterion based on a percentage of sales. But all of this must be anticipated before the problems have even arisen.
The role of the Sales Manager is fundamental because, in addition to their professional qualities in the field of international sales and marketing, they must have clear negotiation and leadership skills to eliminate friction between the grouped companies.
In principle, Chambers of Commerce and Manufacturers' and Exporters' Associations are the entities best positioned to help companies interested in this form of international presence find their future partners. Furthermore, they can also advise on the support offered by ICEX (Spanish Institute for Foreign Trade) and the official promotion agencies of the Autonomous Communities to export consortia and groups, which generally covers up to 50% of structural and promotional expenses.
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