How to Take Your Company Global

After a business successfully establishes itself in the home country, and gains substantive market share it may consider to go global. The local market may have become totally saturated such that chances of expanding the company’s market share in the face of competitors may be hard. The companies that are growth-minded can take advantage of the other unexploited markets outside their country of origin. Opening new branches in other countries is one of the options of getting into the international market. Another way of going global is to import and export utilities which have been made easy by the development in technology, for example US imports data entry services from India and other countries and exports IT services and business advisory to other countries.

Advantages of expanding globally

The following are some benefits that a business experience by successfully growing globally:

  • A business can successfully manage to make longer the sale life of its products by getting new markets in other nations.
  • Reduction of overdependence on the already established local market
  • It allows to even out sales if the local market is being affected by cyclical or seasonal changes in demands by taking advantage of markets not being affected at the same time
  • Offers a chance to take advantage of corporate technology and expertise
  • Going global offers an opportunity to learn how to compete with international players and even allows businesses to take the battle to the rival’s home ground.

Questions before going global

According to an expert in international business, you should ask yourself the following questions before venturing in the international market:

Will people most likely buy the product in the targeted culture?

Thorough market research should help you answer this question.

Does the target market have any prior experience with your product or service?

If the product is entirely new to the market, you should prepare to spend heavily on consumer education. You also stand to gain a lot if you are the first to introduce the product.

Do you fit in the other country?

You may have to spend some time there, thus the need to be in a position to use the local language and be comfortable there.

What is the state of infrastructure?

You are seeking to understand how their roads are, if there are accommodation services that are close or like the one in your home country and so on.

Steps to getting into the international market

The following are some necessary steps that can help guide you as you go global:

  1.   Prepare an international business plan to assess your needs and have your goals in place.it is vital to gauge your readiness and commitment before venturing into the global market
  2.   Carry out market research and identify the foreign markets. Your country’s Ministry or Department of commerce can help you identify potential markets for your goods.
  3.   Evaluate and choose the mode of distribution of your products in the foreign market. You can partner with local companies or open a branch office or set up a subsidiary or use any other viable option. The method chosen depends on the specific market.
  4.   Familiarize yourself with the pricing, how to negotiate deals and how to overcome the legal hurdles of exporting. Cultural, legal, economic and social variations may pose some challenges for if you are only familiar with your home country market.
  5.   Seek private and government funding and find ways to ensure you are receiving payments for your sales.
  6.   Make your goods available on the global market by shipping them there. You must ensure your packaging and labelling agrees with the local requirements.

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