If you live and breathe by the ‘carpe diem’ mantra, you would understand why companies go international.
Taking the step across borders and into foreign markets sounds like a challenging decision for a business – and for good reasons. With this venture, you’ll see more significant liabilities and potentially massive losses, so is it worth the risk?
We think it certainly is – here’s how making a sincere effort to expand borders and go global can reap massive rewards that positively impact a company’s revenue and image.
Why Do Companies Go Abroad?
The prospect of entering the global market would mean a chance to make your brand’s name successful outside your headquarters. But there’s more to it than being globally recognized.
There are plenty of reasons for international expansion, and most of the businesses who have done this before would agree that the entire journey is definitely worth it.
Increase Your Revenue
No company would even consider expansion outside the country if they know that the losses would be bigger than the financial wins.
When a business has already exhausted and explored all possibilities within its home country, it may find it hard to increase sales revenue. This is when you get out of your comfort zone and identify a new environment with a completely different market that would value your product or services.
Due to mere curiosity, reliable recommendations, or just the excitement of trying something new, your new market can become curious or eventually become solid and loyal clients. Naturally, this means additional revenue and an increase in profit.
Discovery of New Talents and Resources
Another reason why companies go international is the possibility of unlocking a new set of indispensable talents.
You have the opportunity to learn and adapt business processes that might be local and fully implemented to another country but foreign to your existing processes. And if these methodologies work, you can get the best practices for your own company.
Additionally, you will also have entry to local and cheaper suppliers, local workers who understand the market, and home-grown leaders that can communicate with you and your potential clients.
Puts You Ahead of Your Competitors
The business world wouldn’t be as exciting and brutal as it is without competition. And one way to be ahead of your competitors is to establish your market presence in a new place before they do.
This is the most strategic move for you, especially if your existing market is already saturated. There are so many of you, but the customer population is not getting any bigger.
Take advantage while you can to be the ‘pioneer’ brand abroad. Sure, they may follow suit, but you have been operating for a while now before that happens, thus building a solid portfolio and a sizable clientele.
Better Investment Opportunities
Surprisingly, not all money-making opportunities can be found at home. Instead, what you need and want might be found in the foreign markets, and you can have visibility of these potential ventures when you expand globally.
If you are looking into long-term goals, then taking advantage of fruitful investments abroad is the way to do it. Along the way, you can also start building your network that can help your global endeavor.
There are more grounds for companies to go international, and all of these can make your existing business better in all aspects – a definition of success in the corporate world.
How do Companies Go Global?
This is one of the exhausting and stressful parts once you decide to go global. Unfortunately, there is no definite step-by-step guide on entering the international market, but here are the non-negotiable aspects.
- Do extensive market research.
- Know your target market.
- Create necessary adjustments to your current products and service to tailor to your new customers.
- Incorporate customer education in marketing.
- Ensure that you are choosing the correct target country.
- Learn about the culture, people, lifestyle, and commerce of the new country.
- Have the right set of leaders and employees.
- Experience the country yourself.
These are just the starting points of going global. There’s so much more to be considered and addressed. And having that mindset to succeed plus the right set of tools can make the entire experience better.
What you Need to Stay Connected in a Global Economy
For a lot of companies, a global economy is an exhilarating place for trade. However, the new and exciting marketplace also has challenges.
In a global economy, a company’s clients are not always in the same city or country as the company’s place of business. So how can any organization ensure that they give their customers the best service regardless of distance or time zone?
Online collaboration software such as AgreeDo is the answer!
Companies that elect to utilize collaboration software are discovering that they can interact with their customer on a comparable level as an in-person meeting. In addition, the software provides tools that make transnational sessions more interactive compared to the standard conference call.
With collaborative online software, companies can connect with their clients and share information as if they were next door.
For instance, project managers can share their agenda with clients before a meeting and allow them to weigh in or add comments. Also, the software allows for easy tracking of meeting notes and important decisions made during a meeting.
In addition, scheduling meetings and topics of discussion is as simple as a few clicks of a mouse. Long and monotonous client conference calls have become a thing of the past for companies that use collaboration software!
There are enough reasons for you to go out there and introduce your brand to the other continents.
It’s no longer a question of why companies go international because it’s a well-walked path by so many companies. Instead, the real challenge is, does your company have what it takes to go global?
If you agree with Reid Hoffman’s “Don’t try to beat the competitors at their own game. You have to invent a new game and master it,” then yes, you have what it takes.