26th Feb, 2020
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In todayâs era, going global is a movement which leads us toward economic, financial, trade and communication integration. This also indicates that the success of an organization is measured on a single most parameter which is âExpansion in terms of customer database and outreachâ. Therefore, today, businesses of every size are gaining deep understanding of the target markets, competition, current local market trends etc. to lay a critical foundation beforehand. Not skipping the fact, all these steps are directed towards a single goal – to increase the influence perimeter and the revenues.
Nevertheless, it is easier said than done. Entering a global market is no doubt a good opportunity for a company but with the personification of age-old hare and tortoise story, it is important to work smarter so as to win the race. On a similar note, one who can utilize the best tools and is able to take right decisions at the right time can catch the big fish from the ocean.
Technology disruption has been the backbone of the economy, the rate of change and the level of disruption driven by modern technology is exponential. Undoubtedly, companies that adopt bold strategies in the face of industry digitization will definitely come out the winners. Well, there is no denying the fact that technology is not only fuelling major business transformation across industries, but it is also changing the face of how technology enterprises are selling their product and services, operations and planning for future growth. Letâs take for instance, development in cloud computing, analytics and machine learning have unfolded in recent years which are enabling multiple opportunities that were once impossible both technologically and economically. Additionally, the use of social networks like Facebook, LinkedIn, and Twitter along with the advent of smartphones and tablets, are enabling businesses to find opportunities in the world market.
So, as these disruptive technologies continue to evolve and play out, it will be up to business leaders, entrepreneurs and policy makers to maximise the opportunities while dealing with the challenges and expanding globally. Business leaders need to be on the winning side of these changes and they can do that by being early adopters or innovators or by turning a disruptive threat into an opportunity.
With solid investigation, companies data effective planning, resourcefulness and efficient implementation, many organisations can find success in the global marketplace today. Letâs have a quick view on steps to be taken before launching the products/services globally:
Determining your business model and the essence of target market:
Before expanding your business in the international market, it is important to understand your business blueprints. It helps in empathizing the essence of the target marketplace, hypothetical customers and competition prospects. Few steps that can be taken care of are:
- Classification of miscellaneous geographical market platforms by performing foreign market research
- Choosing right techniques to distribute products/services globally. It can be administered through any channel, be it privately owned foreign business or a joint venture firm
- Recognition of demographic, geographic and cultural challenges which can influence business during transportation of products as it will aid in placing up price and negotiation deals
- Abundant deployment of government and private resources for financing to validate the upliftment in funding.
Adapting a flexible approach:
Every business is unique in a way they deliver their services and products to fulfil the needs of customers. This implies that while moving the business across the globe, there should be a credible promotion for customer outreach. Clearly, to avoid any fall-back, the product or services should be tested amongst the target audience locally. Moreover, employees working overseas can actually act like a helping hand to discover a better gig.
Identifying the native opponents:
It is said that people almost invariably arrive at their beliefs not on the basis of proof but on the basis of what they find attractive. This can be achieved through active persuasion. Competing with similar products which are also well-established is no doubt bit difficult. Thus, it is essential to make efforts in persuading the international market in regard to the product/service efficiency and also position the product/service differentiator beforehand.
Partnering with right associate – Most important issue which businesses suffer while expanding its wings into the global markets is the financial threat. Hence, it is important to align with a third-party to ensure the sustainability of an organization. Also, partnering with the right associate should cater to bring forth a keen knowledge of the local market. In the long run, it will help in building a trust factors and also enable to scale up the business to a greater extent.
Formulation of new ideas:
Ideas can come from anywhere and everywhere but executing them efficiently results in success. Likewise, expanding business across the geographical boundaries requires execution of ideas amongst both the international as well as national customers. Sometimes, there is discrepancy amongst customerâs taste that can lead to making changes in the sales approach, hence tweaking the product is an utmost requirement in order to offer the differentiate flavours. With the same aspect, the term âGlocalâ was coined. In a nutshell, the entire agenda is to give it a mix of global + local audienceâs taste, to avoid the threat of upsetting any geo partners.
Planning for Budget:
Isnât it obvious that every business plan can shut down due to inappropriate budget? A proper allocation of a budget is a prior need before stepping into the international market. This prior allotment not only serves in predicting the income and expenses while preparing the blueprint of business but also help identifying future financial requirements.
To conclude, all the above-mentioned factors like different partners, nature of products, business expansion, partnership management, innovation, budget-wise readiness etc. aids in creating basic suggestive thoughts while planning to expand globally.
Entering foreign markets can be rewarding and highly profitable step towards business growth but entrepreneurs need to make sure their company is fully prepared. As underestimating the challenges can lead business to struggle more in an unknown territory. The key to success is understanding what scaling means for the business and knowing how to do it a correct way. It can only be achieved by identifying which questions to ask and which metrics to give precedence to ascertain a clear roadmap for expansion.