You have spent years building your business (if you are lucky, months), and now you are wondering what is next on the cards. Well, building a brand after you have successfully created your business is what will give accurate recognition.
More on the best methods
Going international can bring exponential growth to your business and help you establish your brand. International expansion is a multi-level strategic plan to be more structured and sustainable. Expanding business globally can be done with many methods, but each requires determination, some R&D, and experience or expertise. Few international expansion strategies are as below:
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An in-house expansion process
You can be doing exactly what others are doing but is your company and its functions precisely the same as others? Your company has its own needs and limitations, and it might not fit in with the strategies you have adopted for the company looking at others. You need to prepare an expansion method with your company in mind. It will, however, need a lot of research and commitment. The aim is to create a path for your company from where it is to where you want it. Remember to keep your plan open-ended for regular reviews and make any changes to it if needed.
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An international business license agreement
When involving international business, a license agreement consists of two-party from different countries. After this agreement is approved, the licensee gives the rights to manufacture in a foreign country. The benefit of this method of international expansion is that the business now has the advantage of reaching new marketplaces that are not open to exported goods. Let us understand this with an example, suppose there is an ABC business in the US and wants to expand their business in the Indian market using the international license. The US Company will enter an agreement with an Indian firm that will use ABC’s product patent and manufacture the product in India to be available in the Indian market. There are two ways to do this, franchising or private labeling. If the company is franchising, then the company’s name and the label will be used when operating in international land. KFC, for instance, is a very well-known global franchising model. In private labeling, the company’s products are availed in the foreign market under a new name chosen by the other firm.
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Exporting
Exporting without an argument is the best way to enter a foreign market. It is the trade of the products and services of the company in the chosen foreign lands that are carried across from the homeland.
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Partnerships
You can also form a strategic alliance with a local company in the country you want your international expansion to be established and then a partnership. This way, both the businesses will have something to gain out of it and then achieve the goal that was set initially. When starting a partnership, companies should be looking at the values that the other company will bring in with this partnership – both financially and holistically.
When you plan on expanding internationally, you will need to do your market research thoroughly. You need to sit and sort what will be your key strategies. A well-researched international expansion will decrease risk and maximize profit. As yourself question and look for the answers with a design thinking process.
- Will the foreign land hold the demand for your product or services?
- Who are the competitors in this field in the new area, and how will your product or approach be better than them?
- Are there any local laws and restrictions that might land you in trouble regarding your product? (The local laws and restrictions is a very serious concern and needs through research)
These are just a few ideas on what sort of questions you need to ask yourself before you begin the international expansion strategy. The learning curve is always going up when you are in the process of expansion.
