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For many businesses, expanding globally is essential to achieving success in today’s world. International expansion increases sales and profits, enhances a company’s reputation, produces jobs, and offers a valuable way for business owners to level seasonal fluctuations. However, determining the best strategy to do so can be a very difficult one; this heavily depends on your goals and level of resources, which may change over time.
To make your job easier, consider some of the factors and guidelines below before you make that move.
Get company-wide commitment
Your employees should be a vital member of your international team; this includes executives, customer service, engineering, production, purchasing, and shipping. If your product or service requires a skilled support staff, make sure it’s available in your target market. If not, it may cost you a lot of money for support back home.
Study economic indicators
Rank your potential country markets by how much of your product they import from you. Then rank each by their total demand or the previous three or so years to determine market size, its rate of growth, and U.S. market share. When ranking total demand, this should include domestic production plus world imports.
Know your competitors
Identify each international market’s trade barriers. Know your competitors, their products, distribution methods, consumers, prices, and after-sale services. If there’s intense competition, consider smaller markets that you can benefit from. You want to find out where in the world your product or service will be in greatest demand. Remember to study a cultures wants and needs – if your product design is not suitable, adapt to it.
Have an extraordinary after-sales service plan
We all know that the relationship between your company and your customer shouldn’t end when a sale is made. This should be the start of a strong relationship that will require more of your attention. This will determine if your customers will come back for future business.
Going global doesn’t have to be a scary proposition. By considering and developing these four essential factors before going global, your organization can realize the full potential of globalization and capture dramatic revenue growth.
After you’ve successfully expanded, you’ll want to be visible in international search engines. Be sure to check out our past blog for tips!