4 Key Success Factors For Your Business In Foreign Markets.
Expanding internationally is a logical strategy for Businesses cooling off in their own markets. Developing your activities beyond Borders could be a source of revenue but turning this adventure into success and profit is not an easy task.
So, let me share with you some of the key factors to avoid costly mistakes that could impede your success overseas:
Choose the right strategic approach: countries and markets are different -laws, habits, regulatory, Business ethics, Accounting practices, Culture and other aspects are the pillars of your success internationally. Do a thorough market research not only to identify opportunities and potential in a specific market but also to see how you are going to mold your strategy accordingly
Choose the right market: carefully consider this before rushing into the wrong market. For the last years, companies have heavily targeted what so-called “emerging markets”. Well, it might not always fit your case. Be wary of being “me-too” follower to the same markets. Many of those markets are experiencing a downturn and it is therefore wise to have a plan B when the growth fizzles further.
Choose the right mode of entry: what mode of entry are you going to undertake? Greenfield, indirect through Distributors, Direct with your own staff and operations, affiliates or partnership with a reputed organization within the same industry and many others methods. You have to assess your strategic capabilities, set up costs, market potential, cash flow and the return on investment in order to choose the right strategy. If your investment capacity is limited and you do not know the market you want to go in, choosing a credible distributor or agent is the best choice.
Know the Culture: This is the most critical factor to consider. Many Businesses have failed because leaders did not even bother to learn other cultures. It is evident that the world now is a small village but this does not necessarily mean that all nations have the same beliefs and ways to do Business. Having a cross-cultural literacy and sensitivity to the new market are valuable assets to your Business Beyond Borders.