The CARICOM Exporter’s Cheat-sheet: CARICOM vs. International Markets
Based on research done by Dr Lincoln E Bobb
Dr. Lincoln Bobb’s thesis provides a clear framework for agri-business firms in Trinidad and Tobago to successfully export their products. The most important lesson is that a single strategy will not work for both markets.
Below is a summary cheat-sheet outlining the key characteristics, strategies, and success factors for exporting to the two distinct destinations.
Market 1: Intra-Regional (CARICOM) Exportation
This market is perceived as an Extended Home. The strategy here is focused on meeting the everyday needs of Caribbean consumers efficiently and affordably.
| Feature | Strategic Requirement | Key Success Factors |
| Primary Strategy | Cost Leadership | The ability to scale production and manage costs to offer a competitive price point. |
| Market Focus | Mass Market (Balanced with Niche) | Must be able to supply bulk orders and maintain consistent product availability across the region. |
| Customer Driver | Cost, Availability, and Quality | Buyers are often price-sensitive and seeking consistent supply for staple goods. |
| Entry Barrier | Low. Reduced Psychic Distance. | Political agreements (Special Trade Arrangements) and cultural similarity make entry easier. |
| Network Need | Low/None. | Firms are confident entering without relying on a local competitor for support (71.9% enter alone). |
| Goal/Objective | Expansion of Business and Regional Market Presence. | Leverage ease of export to build steady, high-volume revenue. |
🌍 Market 2: International (Non-CARICOM) Exportation
This market is perceived as High-Risk/High-Reward. The strategy here is focused on standing out and selling a unique experience to specific consumer segments.
| Feature | Strategic Requirement | Key Success Factors |
| Primary Strategy | Narrow Differentiation | The ability to craft a distinctive brand, unique flavour, or artisanal quality that commands a premium price. |
| Market Focus | Niche Market | Target small, specific segments (e.g., high-end chocolate, gourmet sauces, specialized pepper products). |
| Customer Driver | Distinctiveness and Quality | Buyers are often looking for products they cannot find locally, including those driven by Diaspora nostalgia. |
| Entry Barrier | High. Increased Psychic Distance. | Higher logistics complexity, foreign standards, and cultural differences must be overcome. |
| Network Need | High. | Firms prefer to follow local competitors (63.5% follow a local competitor), leveraging the network to reduce risk. |
| Goal/Objective | Earning Foreign Exchange and Exporting the Highest Percentage of Sales (81-100%). | Profitability is driven by high margin, not high volume in a broad market |
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