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Overseas expansion is the route to enter different markets, acquire the best minds and set the business venture for a long term success. There are multiple advantages of taking your business to a global level which requires a robust and well thought out overseas expansion strategy without which the business is set to fail. The following piece of information provides a glimpse to the 6 important steps for executing a successful overseas expansion strategy.
An overseas expansion strategy is nothing but a formal business plan which lays down the course of action of the business entity to expand its operations in the foreign markets and at the same time mitigating risks and increasing revenue flows. A successful overseas expansion strategy must have clear timelines and budget, thorough research, realistic goals and a competent workforce. The strategy should give clearly lay down the role of each person involved in the execution of the strategy.
A well thought out, robust overseas expansion strategy helps in the following ways:
Following are the six important steps for a successful overseas expansion strategy:
Before you venture into expansion of your business, be it local or global, it is very important that the goals of the company are clearly outlined. This gives the company, management and employees a direction and helps them in setting short, mid and long terms goals for achieving ultimate target of the company.
Once the goals have been set, the next task is to carry out thorough market research of the market you wish to introduce your product in. Market research helps to predicting and determining the possible advantages and challenges before the resources are engaged in the new found market. Further, it helps in predicting, managing and ultimately remove the possible risks and also reassures the creditors and investors about the expansion plans.
Following are some of the questions which the market research should answer:
There are many strategies for taking business globally. But the fact that one strategy worked at instance may not work well the other time. Based on the goals of the company, the market research done and the resources at disposal, a tailor made overseas expansion strategy should be devised for your organization. The strategy could include exporting goods or services or licensing of the technology or forging strategic partnerships or mergers and acquisitions or venturing individually etc.
Every strategy will bring along its pros and cons and therefore, after due considerations the best possible strategy should be chosen which aligns best with the objectives of your entity’s objectives.
Efforts should be made to hire local talent while expanding because of the following reasons:
A local support is always needed while venturing into the newer markets because the local players have a better understanding how the local regulatory framework and the business ecosystem. This can make things seamless for you. These local partners include the third party logistics partners, legal advisors, advertising agencies etc.
It is always suggested that before entering into contract with any of the local partners, it is very important that due diligence is properly done. A reliable local partner must have an impressive portfolio, positive reviews from previous clients, competitive quote for their services and timely support. A good local partner can help you to easily penetrate the market without much hassle.
Having followed the abovementioned steps, the time arrives of launching the product in the market. Since the first impression matters, multiple advertising mechanisms should be adopted to get your product across your target audience.
Once, the product has been launched, the most crucial step is to constantly monitor how your product is being received by the market. You should take continual feedbacks from the customers for better understanding of their demand, for making modifications in the product and catering to the specific needs of the market.
The process does not stop here. A company should always assess both the positive and negative factors, external and internal events for the success or failure of the product in the market which will set a solid groundwork the next time the product is taken to a different market.
Expansion into global markets is considerably profitable and this opportunity will continue to rise as the world becomes more connected. Such expansion has its genesis at the right overseas expansion strategy. Therefore, before expanding operations globally always factor in the above mentioned factors and the consequent strategies to take your business to new heights.
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