21st Jun, 2018
, , Designation
Expansion can be seen through the same lens as we feel about the word âgrowthâ. Quite understandably, expansion of outreach is considered one significant parameter for measuring the success of any organization. And these days we have organizations of every size vying to expand their horizons in global markets. All the efforts and resources directed towards this goal aim to increase the influence and the revenues.
However, easier said than done. The path uphill is never an easy one and there are risk factors involved naturally. Like the age-old hare and tortoise story, it is the smartest and not the one who is just perceived smartest, wins the race. Similarly, in these times, the one who can leverage the best tools, decision-makers and ensure the right timings, is the one who is able to make a mark.
Moreover, with the technological disruptions and advanced communication, the process of expansion and making the right moves at the right time has become easier. However, it is an essential human nature to get confused when presented with choices or to make not-so-apt decisions when shadowed with the competition pace up.
Beyond a composed approach, there are certain strategic moves which can lead you to the wise road and help you take those forward steps more confidently. Letâs have a quick look at those moves:
Hang on to an easy trajectory
It is always advisable to understand the essence of the target market, potential customers, and competition prospects. Some steps can be taken for the same, such as:
- Conducting foreign market research helps to categorize diverse international market platforms.
- The proper selection of techniques aid in disseminating the products worldwide effectively. It can be processed through any medium be it a privately owned foreign company or a joint venture firm.
- Identifying the cultural, legal, social and economic influence during the exportation of products that will cater in setting up price and negotiation deals of trade.
- Ample utilization of government and private resources of financing so as to make sure it provides an upliftment in funding.
- Promoting the goods and services in the international market by trademarking them in accordance with the rules and regulation of market demands.
Taking the flexible way
Every business is entitled to its unique products/services. Thus, while stepping into the global market, the promotion of product should be credible enough as per your global outreach.
Ideally, it should be tested (in case if itâs a new product/service) amongst the target customers locally at first, to avoid any fallback. Going forth, for a better prospect, utilization of overseas employees can act as a boon in identifying a better gig.
Identification of local competitors
Persuasion is an art to make the opposite party believe in your product efficiency. Although, it is not an easy nut to crack, especially amongst the foreign customers when a similar product is being manufactured in their home country.
Therefore, with big players in foreign markets who have already marked their territories overseas, your company is required to put even more efforts in convincing the international market on how efficient and worth your product/service is or what is the differentiating element which you bring to the table.
Global Coalition â Selecting the right partner is the key
Business security is a must task to be performed while stepping into the global outreach programmes. Hence, there is always a requirement of third-party relationship for the sustainability of the organization that can set off minimum chances of financial threat.
Moreover, quality of the partner should cater to having a keen knowledge of the local market. Thus, with the maximum experience in the industry, the partner should be well aware of the prevailing ifs and buts in leveraging the resources. Going forth, it will not only help in building a trust factor but will also enable to scale up the business to a greater extent.
Deliberation of new ideas – #JustRight
Formulation of ideas is always easy but to execute them is like separating the sheep from the goats. Similarly, going global requires the execution of ideas for both global and local customers. Although, we all know what our local customers desire from our products and services but then, as the idea is to set up abroad, there should be a flexibility in observing overseas customerâs requirement as well.
Variation in customerâs taste may call for to make an adjustment with the sales approach, thus it is essential to tweak the product offering with respect to the local flavor. The term âGlocalâ was coined referring to the same aspect. Therefore, formulation of ideas should be implemented in such a way that it should avoid the risk of distressing the international partners.
Budging through the budget-uncertainty barrier
Every strategic planning can be put on hold without a proper allocation of the budget. Hence, even after a proper penetration into the international market, there is a need to set a budget for further modification of plan as and when required. This allocation will thus help to forecast all income and expenses while preparing business in identifying the future financial needs in advance.
In a nutshell, the above-mentioned checklist might differ for different players, centered around the factors like nature of product/ service, history of expansion, partnership management, innovation and flexibility quotient, budget-wise preparedness etc. However, they can form some basic indicative thoughts one can pay heed to while planning to spread globally.
Please add to this list and share with us your thoughts in the comment section below on what else should the organizations keep in mind when planning to expand their geographical footprint.