In today’s society we move at an incredibly fast pace and with this fast pace comes a continually evolving environment. When we consider the wide-spread integration of high level technology globally, the best may be yet to come. There are numerous reasons why we may want to consider expanding our operations globally; increased sales, access to new resources and markets, and potential productivity cost efficiency improvements. As the world continues to grow, new businesses will continue to be created; these businesses are being created by new breeds of entrepreneurs. These entrepreneurs were born into a world of global business, they see the opportunities and they are not afraid to step forward.
Let’s talk about how we can move forward, let’s talk about resources for a minute. Companies need certain resources to carry out their business activities, this creates a situation where they must constantly monitor and take into consideration the cost of acquiring these needs. In order to keep total product cost levels acceptable, certain built in monitors must be developed. However if there is a more cost efficient and high-quality production option, it should be considered. This is happening around the world now globally, some throw the word “outsourcing” around, and others say they are merging business communities. Regardless, it has created all sorts of new business angles and opportunities for growth and expansion into new markets.
Since the cultures, politics, economics, and laws are not the same in all countries, there can be different barriers to entry in certain regions. We must rely on research based upon the local demographic & economics of the region, and conduct our analysis accordingly. Some barriers may be modifications of products/services for local preferences. In addition, cultural elements play a large role in determining what products are appealing and accepted amongst the local target market.
Government regulations, government stability, and overall corruption are factors that must always be considered when pursuing business in an unfamiliar foreign land, just as it would be domestically. Some governments take a hard line position on new products or forms of commerce being conducted in their country, while other countries are very receptive and offer incentives for doing business in their countries. There are numerous consulting agencies, such as Motivated Entrepreneur Consulting that can assist us in locating individuals who have specific data on any existing as well as emerging markets.
When determining our entry, we should consider numerous variables. “Market Size” gives us a picture of the size of the overall economy, mixed with a comparison of the “Growth Rate” for that specific market, it can be very useful in determining when markets are shrinking or growing. “Commercial Infrastructure” looks at the channels of distribution that exist in the territory as well as the physical feasibility of conducting business in that area, such as paved roads, phone lines, etc.
Once we have done our research and decided our business is going global, the possibilities begin, let’s review and cover the basics. As in any new business we may start, we need to begin networking and assembling our list of needed resources, contacts, and potential clients. We need to determine the best ways to utilize those contacts and start going after our target market. Thanks to the Internet this has become much easier for us to do now. However, beware of Internet scams which are occurring more often these days. A great source of online market information is Lexis-Nexis news reports from around the world.
Marketing our products/services can be difficult anywhere, let alone in a foreign market. Consulting a professional who can guide us in each market we choose to enter will be most efficient. We need to determine how our product/service will enter the market utilizing its strength or minimizing its weaknesses. Going global is a good thing, and the opportunities continue to increase as technology continues to evolve. With the right product/service, there are numerous opportunities waiting to be seized. As long as we do the proper research and put in the necessary time and effort, the rewards should be great.
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