Conquering your domestic market is one challenge. Going global while establishing a successful business on a worldwide scale is another entirely. Even companies such as Tesco, Starbucks and Walmart have hit rough terrain when expanding to international markets, proving how difficult it is to become a successful brand name across the globe.
Why, then, would a business choose going global when it already dominates domestically?
The main reason is that the company needs to grow and attempting to penetrate international markets is the only way to do that. Managers might also feel that the company could benefit from exposure to new markets or a reduced dependency on the domestic market, should it experience a slump. An entrepreneur may want to pit his or her wits against established worldwide competitors and take them on at their own game. Even if this mission proves unsuccessful, the entrepreneur is very likely to garner valuable lessons from trying to expand globally which can be applied to its indigenous operations.
Before making the giant leap to the international stage, companies need to find answers to key questions.
For instance, is there a solid enough foundation to afford international expansion? Will the product or service translate successfully to overseas markets? Think of how the Vauxhall Nova flopped in Spanish-speaking countries due to the translation of nova as ‘no go’, or the unfortunate case of Irish Mist whiskey in Germany, where mist is a word politely translating into English as manure.
A key factor to succeeding in overseas markets is to be adaptable and flexible. What worked in your home market is by no means guaranteed to succeed elsewhere. It’s imperative to know the consumer traits of any market which you’re trying to break. Otherwise, the resources and effort you’ve invested in taking your business global will most likely be wasted.
Check out this infographic from All Finance Tax for brilliant tips on how to successfully manage the domestic to global transition.
What do you think about going global?
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