Once you have mastered your domestic market, the next natural step is to go global market today. However even the most notable companies can struggle on international markets, so you need to be assured that you can make your business work in foreign markets before expanding globally.
Continued growth for your business once it has understood the domestic market share
Access to new technology in IT industry, financial & human resources
Opportunity to grow your company's brand
Opportunity to compete against foreign multinationals
Greater knowledge of foreign cultures
Increased sales potential from selling your product/service in new markets
Reduced dependence on sales from within your domestic market
Possibility of taking of what you have learned from foreign markets & applying it domestically
Opportunity to remedy reduction in sales cycle from seasonal cycles by tapping into other markets with contrasting fluctuations
Key Questions to Ask Before Going Global- Global Market Analysis
Does the business have a solid enough domestic foundation to afford going to all global markets?
Would it be easier & cheaper to just expand your company's online presence?
Will your product/service sell adequately in foreign markets today?
Is the infrastructure of the target global market distribution good enough to support your company's operations?
Is your target market familiar with your product/service or do you need to educate consumers on it?
Will you be able to adapt to foreign market cultures?
Do you have a working knowledge of the language & culture of target markets should you need to spend time there?
Do you have planned strategies for entering foreign markets?
Mistakes to Avoid When Going Global - Global marketing issues
Hastily deciding to expand to international markets without first conducting thorough research
Failing to conform your products/service to the needs of overseas markets
Failing to budget for unforeseen expenditure
Chasing a large number of inquiries at an early stage instead of focusing on a small pool of
countries at first
Expecting an immediate return on investment
Inability to understand the difference between domestic market and international market
Assuming that all business can be done through the English language
6 Steps to Going Global-Global Market Solutions
Prepare an international business plan to evaluate your needs & set goals.
Seek funding from government & private sources for expanding into foreign markets.
Evaluate alternative methods of overseas distribution & select whichever is/are appropriate
Conduct research into potential foreign markets & identify suitable markers
Educate yourself as to the finer cultural, social, economic & legal points of exporting
Move your product/service into the international market
How to Prepare for & Act in International Meetings
Educate yourself about the country's culture & learn a bit of the language. Your partners will appreciate this show of respect for them & their country
Familiarise yourself with cultural differences in body language. It differs from country to country.
Make your own interpreter. Even if your partner has one, they won't have your interests at heart
Dress as appropriate for the country in which the meeting is being held
Engage in a small bit of open chat with your partners prior to the start of the meeting. It's a good way to make a positive first impression before properly getting down to business
Don't set time limits. By keeping the meeting open, you are strengthening your negotiating
position
Tips for Hiring a Distributor
Decide whether you want a stocking or non – stockings distributors. Stockings distributors are often larger firms who commit to purchasing your product
Ascertain whether your product/service requires a distributor with specialist knowledge of a certain subject
Favour distributors with a track record of selling to customers who you have identified as your target market for your product/service
Favour distributors who are multi-lingual especially if your language skills aren't developed
Take note of distributors who reply to communication promptly & consistently
Meet any potential distributors in person before formally hiring them
How to Identify Sources for Imports
Attend national & international export exhibitions which feature exhibitors who seek to Export Business to your domestic market
Focus on countries where your domestic market is granted favoured status, as this will incur lower import duties.
Contact export business representatives working at the embassies of the countries that you have selected
Study magazines newspapers & export data publications for advertisements or articles about commodities you might wish to import
