Many mid-sized companies feel the pull toward global expansion at one time or another. Developing country markets offer a number of advantages, but venturing into new markets brings new challenges as well. It’s important to do your research and make sure expansion into developing countries is right for your company. Here are some tips to help you ensure your global expansion is a success.
Research your market
As with any new expansion or change in your marketing, it’s important to do your market research. Your brand must be a good fit with your target customers in the country or countries you plan to expand into. Make sure you conduct research before deciding where you want to expand. This will help ensure you choose the right developing country to expand to first.
Learn about your competitors
Just because you are venturing into a developing country, doesn’t mean you won’t have any competition. Local businesses know the regulatory environment better than new market entrants do, and this can be a big advantage. Be sure to research the area and know the local regulations, as well as who you will be competing against.
Know the rules you’re operating under
Global and national rules are different. The demands on a global business are much different from those imposed on a domestic firm. Understanding the regulations you’ll be subject to, as well as any differences – official or unofficial – between how foreign and local businesses are treated will help you accurately weigh the pros and cons of expanding into developing country markets.
Appreciate the locals
Local talent is key to the success of mid-sized businesses that are expanding globally. A global operation can be sustained and supported much more easilywhen it provides jobs for locals. Take the time to make sure that local staff are trained properly and are provided with incentives that encourage long-term employment.
Local employees are a great source of information as well. There will be a number of different international business customs you will need to learn about in order to do business globally and the locals can help you learn them.
It can take some time before your business is completely ready to start selling products in developing country markets. Be prepared to be in it for the long haul when going global. As more companies expand into developing markets, it will become more efficient for other countries, but it’s also important to do your research and make sure this expansion is the right move for your company. Expanding into developing country markets is a long-term strategy, and you may not see rewards immediately.
Making sure your company is ready to enter markets in developing countries is going to take a lot of patience, knowledge, and research. If you’re not sure where to start when it comes to this expansion, Pivot International can help. Pivot offers a wide range of business expertise from managing your supply chain, to advising you on business development and helping guide you through the product certification process. Contact us today to learn more about our International Business Services.