Once a company has maximized its domestic market share, one strategy traditionally has been to venture outside local borders and to expand into the international sphere.
As communication networks and business technology continue to advance, there are more opportunities to expand without the extensive travel and legwork that used to be necessary. However, the logistics and differences in cultures can make it challenging to operate in foreign territories. Is it worth the efforts to go global? In today’s market do the rewards outweigh the risks?
In addition to gaining market share, there are many advantages to international expansion, such as diversification and gaining access to a wider pool of investors and international talent. Each company must do its own cost/benefit analysis to determine if a global move is right for them.
Understand Your Positionan style="font-size: 11pt;">As the old saying goes “You won’t really know where you’re going until you understand where you are.” It is important to have a clear and current picture of where your company stands before you expand.
Just as if you were planning the merger, sale, or acquisition of your company, it is sometimes beneficial to bring a strategic consulting firm, such as Teneo in at an early stage. For example, an advisory firm such as Teneo’s firm can help you achieve an unbiased view of where you stand and help you to determine options for moving forward.
Does your company have what it takes to go global? One article published by Harvard Business School goes in-depth on the keys to being prepared for global success. A few of the qualities that were highlighted as key qualities of a successful business candidate for international expansion included flexibility, fortitude, and a clear vision.