Expanding abroad could be the decisive step in your business’ journey towards its full potential – but it also requires planning, preparation and careful execution. In particular, a business undergoing international expansion must work to ensure that the process of market entry is undertaken with the maximum amount of efficiency and compliance. Here’s what you need to know.
Selecting Your Target Market
Before any further steps are taken, you need to decide upon a target market for your expansion. Attempting to expand too erratically or ambitiously could prove fatal to your chances of success – it is therefore highly advisable to narrow down your options and focus on one individual target at a time.
Carrying out detailed market analysis will ensure that you arrive at the best decision for your company. Analytics tools and a market segmentation analysis can examine trends within your target market and determine whether there are gaps for your business to fill, while a basic SWOT analysis of local companies will give you an insight into the level of competition you are likely to face.
The quality and availability of existing infrastructure should also inform your decision process. Should you find yourself faced with the choice between operating in an established market or an emerging market, the issues of infrastructure and of external risk will prove especially important, as the difficulties you encounter in these areas may outweigh the benefits.
Once you have selected a target market, this pre-expansion period is also the ideal time to begin building up a list of overseas contacts and assessing whether you will need to establish a legal entity within your new country.
Making Your Market Entry
Now that you have decided upon a destination and developed a detailed analysis, it’s time to begin making your entry.
Fortunately, it will not always be necessary to create entirely new campaigns from scratch – many aspects of a market will be unique to its location, but others are more fundamental and remain the same across the globe. While some elements may prove harder to translate than others, these can be phased out as you monitor their performance. This will ensure that your business is making its presence known from the second it touches the ground.
The chances of success in the market entry phase can also be greatly bolstered by the input and support of the right local knowledge. This could simply be business advisors or specialists from your new market, but it could also mean entering into an expansion partnership with an established local organisation. This option carries several distinct advantages – as well as the existing resources, staff and infrastructure that an expansion partner can provide, they can also help you achieve market recognition. Arriving in a new location with the tacit endorsement of a respected local business, with an established customer base and list of contacts, places you in a better position than trying to build a brand identity from the ground up.
From the initial decision-making-phase, right through to on-ground implementation, international expansion can seem like a daunting task. While complacency should certainly always be guarded against, adequate preparation and due diligence can ensure that your business achieves its global goals as effortlessly as possible.
Author bio: Dorothy Jones is an experienced content writer and she writes on different aspects of business. She provides important and useful tips on business expansion. If your business has global ambitions, Galvin International’s award-winning concierge service provides expert guidance, custom solutions and implementation throughout your international expansion. Get in touch to find out more.