Going Global: Strategies For Expanding Your Business Internationally
Companies seeking to develop a broader market reach and multiple revenue streams have likely been considering an expansion into one or more different countries already. Perhaps your forecasts say the local market is close to saturation or that your competition is gaining momentum, causing you to start thinking if globalisation is the right move for your operations.
A strategic, measured approach to going global requires significant introspection and self-evaluation concerning your organisation’s strengths and weaknesses. Do you have existing relationships with partners abroad who provide risk management, infrastructure, and 3PL services? What are other key things to consider before formulating a plan for international expansion?
Continue reading for some critical questions you need to consider before making this pivot into untapped markets.
Determine Feasibility
Analyse whether making this expansion is worthwhile, especially in light of the current global challenges. What are your short and mid-term 5-year corporate goals? Can you achieve them in your current locale, or should you modify your strategy? Two studies of your current situation should be performed to answer these questions.
First, SWOT (strengths, weaknesses, opportunities, threats) analysis gives you a point-in-time snapshot of your current competitive reality. This should be an honest, data-sourced evaluation free of bias. Next, use a Gap analysis to assess how your current performance aligns with desired future benchmarks and milestones. If those future markers are cloudy or undefined entirely, it’s time to nail those down before moving forward.
By using these two studies to assess your current situation and how that relates to your ability to pivot, you’ll make better decisions regarding any strategic plans, be it expansion or staying on your current path.
Assess Your Adaptability
Operating in foreign countries means a potentially seismic shift in your current operations. Each new locale requires establishing an intimate working knowledge of the culture, business practices, and language(s). Adherence to the new markets’ legal systems, tax structures, and supply chains is paramount too and cannot be overlooked. You’ll need to decide if your current team has the depth to face these new challenges. How familiar are they with the culture and business climate of the target market? What about senior management? Will you need to source talent in that market, or can you borrow from your current executive staff?
Realise that filling these roles will take significant time and expense before you can realistically expect to begin operations in earnest. It may be a mixture of your legacy staff and a new partnership in your new market. Establishing an exploratory team who travels to the locale, performs due diligence research, and recruits top talent well before the start of operation is prudent. This will ensure you have any potential issues covered by someone trained and skilled enough to handle any situation.
Evaluate The New Locale
How does the market in this new country relate to your existing products? Will you offer the same products to consumers, or will you need to modify products to satisfy the new market? How long will it take to develop and test if you assess that new products are required?
Market segmentation analysis will tell you whether creating new products is worthwhile and how successful the new offerings may be. Assess how big of a demand there is for your products or service in your target market and how much that demand is currently satisfied by local providers.
Define Success
Once you’ve identified, based on accurate data, that there’s a market opportunity for your business, then it’s time to define what success looks like. Map out milestones in the short, medium, and long-term periods. Market conditions will not mirror your current locale, so define separate metrics based on the realities of the labour market, economic markers, and government regulations. Timelines will be affected by forces beyond your control, so be sure your strategy reflects these nuances.
Localise Products
Global markets have different customs, regulations, and languages. You’ll need to ensure compliance with these laws and customs by applying for any required permits, certifications, and licences specific to each country and city. Research and review the new jurisdiction’s product patent, branding, and trademark laws, then ensure compliance with these regulations for each product line.
Prepare product documentation translated into the local language, and evaluate how you’ll approach customer relations management. Will it be centralised in your home jurisdiction or local to this new market? Ensure your service level commitments and quality standards are aligned with those within the target region.
Expansion Through Partnership To Reach Your Goals
Leveraging the benefits of international trade isn’t something to dive into without a strong research, planning, and partnership foundation. A larger customer base and diversified revenue stream await those companies who methodically map out their global expansion aspirations. Potential new markets are within reach through an honest self-evaluation of strengths and weaknesses, combined with robust partnerships for functions like third-party logistics, branding, and inventory management. With the right approach to global expansion, there’s no reason that you can’t take your business into new exciting markets and make a significant impact that will benefit you moving forward.