Global expansion plan
International expansion strategy framework
Develop a tactical project plan with commit dates. Chao said this can be particularly tough for smaller businesses, because they have likely been doing everything on their own up to this point. If your product is sold more regionally, you will have to consider the increase in packaging cost associated with labeling. But if many of your potential consumers are lactose-intolerant, you'd want to steer clear of opening an eatery that sells only cheese pizza, says Johnston. But those only scratch the surface. IT security and network protection bolster end-to-end connections, so employees can work securely from anywhere. Licensing agreements allow foreign companies to sell or represent your brands in their home markets, achieving the same kind of product introduction that exporting provides, but with a different set of risks. Develop competitive compensation packages based on local standards and customs. Taking a small business global is an complex and dynamic process. There are many other fast-growing, less-competitive markets. Meet your prospects in person, and, as always, get and check references. Companies get to reinvent the wheel on strategic products or services they think will excel in a new market, and even correct for past errors. Establish a Beachhead Team Many global companies try to launch with executives from the parent company or rapidly build a local team from scratch.
If you don't do this ahead of time, you run the risk of offending your international partners by appearing to be more concerned about yourself [than] them. One of the most popular sources of financing for businesses expanding overseas is the Export-Import Bank of the United States.
If you are seeing international interest in your goods and services, it may be time to take the leap. Do you feel comfortable in that country?
Are you ready for international expansion?
Finally, by entering the global marketplace, you'll learn how to compete against foreign companies-and even take the battle to them on their own ground. Determining market entry strategies deciding value proposal, positioning of the brand, target customer, product, determining price levels and channel strategy Determining operational and organizational model Conducting feasibility analysis Determining road map and action plan Providing support in business partner selection and in the preparation of commercial agreements Providing consultancy on law, legislation, and tax issues Determination of production facility location Who do we work with?
This often means transit times measured in months, with the associated risks of missing market opportunities. Chao said this can be particularly tough for smaller businesses, because they have likely been doing everything on their own up to this point.
based on 94 review