INTERNATIONALISATION STRATEGY

Accelerate your business with these expert tips on "Internationalisation strategy". Analyse and discover this TIP!

Going abroad is a logical step that will allow you to continue to grow by developing new markets. Exploring the opportunities offered by international business is exciting, but at the same time it is more complex than doing business in your own country.

And it's not just because the customers are different. You also have to deal with customs and other governmental authorities, banks, insurers, import/export service providers and international transport. In addition, you need to familiarise yourself with business practices in other countries, different cultures and currencies.

Success depends to a large extent on having the right internationalisation strategy, starting with a good market analysis and having the necessary help and support.

Internationalisation is the The process a company follows to reach international markets and export the goods and/or services it produces in its home market.

Export activity is not an eventual activity that responds to temporary situations, but requires a medium-term vision and a clearly defined strategy. This process takes time and requires a great deal of effort on the part of the company. But with a With the right strategy and the right know-how, internationalisation can bring very positive results for your company.

From the very beginning, you should think about internationalisation, i.e. how to win over customers in other countries as well. The process of internationalisation is usually gradual: at first it involves occasional exports or imports, followed by a phase of regular international activity, before finally reaching an establishment abroad through commercial or production subsidiaries.

It can sometimes be difficult for small and medium-sized enterprises to understand trends in the global economy in order to take advantage of new business opportunities and to define a strategy that will result in successful internationalisation, but you need to be aware and take advantage of every opportunity.

Digital businesses are just a click away from every customer in the world, but there is no point in trying to win over customers who live in other countries if I have not yet won over those close to me. Going abroad requires an extra effort in terms of activities, partners, resources, investments and people, and you have to be well prepared.

If my business model does not work well in my region, I will not improve by repeating it in other countries; indeed, I may aggravate the situation by trying to internationalise prematurely.

Investors want startups with large growth potential and this requires the entrepreneur to have a strong ambition to internationalise the company as soon as possible. It is all very well to think big, but the right thing to do is to start small, and to internationalise at the right time.

Self-analysing the feasibility of going international

When considering going abroad, you need to be able to answer the following questions:

1. Do I have a product or service that can be competitive in other countries?
2. In which countries would my product or service work? Do I have the financial, technical and human resources to undertake internationalisation?
3. Can my company take on international expansion?
4. How would you enter the country of destination: directly, with local partners?

• Have an internationalisation plan:

It can be complicated to carry out all the analysis and research needed to develop an internationalisation plan.

It is a mandatory task to expand with guarantees, which requires clear objectives, sufficient resources, specialised personnel... leaving nothing to improvisation.

• Consider exporting before internationalising:

It is a very useful prior experience, as a kind of pilot test or market test, because it can help us determine whether to take the definitive step towards internationalisation.

• Define objectives:

We must be very clear about why we want to expand our brand abroad, what are the real objectives for which we want to take the international step.

• Do not be in a hurry:

This is a complex process to tackle, which is not short- or medium-term, but has to be carried out with a view to the long term and permanence in the country of destination; for this reason, it must be taken calmly and without taking unnecessary risks.

• To have the necessary resources available:

Particularly of an economic nature, since it is necessary to have the financial muscle to tackle internationalisation, as well as to surround oneself with professionals in the field and also to have technical resources in terms of the logistical control to be carried out when introducing a product or service in another country.

• Good marketing and branding:

Nowadays there are no frontiers thanks to new technologies, so it is very important to have a quality website, with well prepared content, simple and practical navigation, which adds value to the brand, as well as to the products or services we offer.

• Choose the target market:

There are 194 countries in the world and we have to clearly define in which one we want to land, because of proximity, cultural or linguistic affinities, because an opportunity has arisen, because there are people interested in introducing our business in their country of origin?

• In-depth and exhaustive analysis of the target market:

There are various sources, studies, reports... to obtain information about the country in which we want to disembark; however, the most advisable and reliable way is to to get to know the market on the spot:

Attending trade fairs with internationalisation professionals, knowing the competition, studying legislation, the best locations, cultural habits... and, above all, with the permanent support of a native expert with extensive knowledge of the market.

• Choose the entry formula for the country of destination:

The most practical and effective way to enter another country is through local partners, as they will provide the precise knowledge of the market, which will greatly facilitate the internationalisation process.

It is therefore essential to partner with people who have the right profile to help us introduce and then expand our product or service in their country. To see if you are ready to go abroad, I recommend you to complete the following steps this test (+).

Internationalisation strategy:

TO INTERNATIONALISE YOUR COMPANY YOU HAVE TO FOLLOW A FEW STEPS AND MAINTAIN A CONSTANT STRATEGY:

• Be very clear about the main aspects of the business: such as the strategy developed, in the national framework, the definition of the business itself, the working methodology, the good knowledge of the product offered to the client, etc.
• Thoroughly investigate the competitive advantages and disadvantages of the market. to which your company is going to be introduced.
• Assessing the costs involved in penetrating a foreign marketFor this purpose, it is recommended that you travel and make new contacts.
• Take into account factors such as the need for more advanced logistics, higher production, larger workforce, etc.
• Have your product ready to compete in a new market. and be able to offer something different from what already exists in the market to be entered.
• Your company must be prepared to take on the initial expenses internationalisation.
• Knowing the market legislation in which your company is going to operate.

There is a lot of funding and support for internationalise your project. Participate in the practical workshop on how to sold in Europe (+). To improve your ability to internationalisation (+) we recommend you to complete one of the acceleration programmes we organise every month.

Once a company has chosen the country in which it wishes to internationalise, there are a number of strategies it can follow to establish its presence in the target market.

THE FOLLOWING ARE SOME OF THEM:

1. Direct export: This strategy involves shipping products or services directly to the target market. It is a good option for companies that do not want to make a significant investment abroad, as it does not require the creation of a subsidiary or direct investment in the country.
2. Strategic alliances: Creating an alliance with a local company in the target market can be an effective strategy for entering the market and establishing a local presence. This option can allow the company to take advantage of the local partner's knowledge and experience, which can reduce the risks and costs of market entry.
3. Franchising: This strategy allows a company to expand its presence in the target market without having to assume all the costs and risks associated with setting up a subsidiary. By licensing local franchisees to use its brand and business model, the company can leverage the franchisee's local expertise and generate revenue through royalty payments.
4. Procurement: Acquiring a local company in the target market can be an effective strategy to establish a quick and strong presence in the market. This option can allow the company to leverage the existing expertise and infrastructure of the acquired company and minimise the time and costs required to establish a local presence.
5. Joint Ventures: This strategy involves setting up a joint venture with a local company in the target market. This option can allow the company to share risks and costs with the local partner, take advantage of its knowledge and experience, and establish a local presence more quickly and effectively.

It is important for the company to carefully evaluate each of these strategies and determine which one is the most appropriate for its objectives and resources. In addition, it is essential to have the support of professionals specialised in international trade and with experience in the target market.

TO USE CHATGPT TO FIND THE RIGHT INTERNATIONALISATION STRATEGY FOR YOUR COMPANY, FOLLOW THESE STEPS:

MAKE A LIST OF SPECIFIC QUESTIONS YOU HAVE ABOUT THE INTERNATIONALISATION OF YOUR COMPANY, FOR EXAMPLE:

• What is the best way to enter a new market?
• How can I assess the potential of a foreign market?
• How can I mitigate the risks of internationalisation?
• How can I find reliable local partners?

ACCESS THE PLATFORM WHERE CHATGPT IS LOCATED. YOU CAN USE ANY DEVICE WITH INTERNET ACCESS

1. Log in or register if you have not already done so.
2. Write your questions clearly and precisely in the chat.
3. ChatGPT will provide you with real-time answers based on its knowledge of your internationalisation strategy.
4. If you need more detailed information on a particular topic, ask ChatGPT to elaborate on it.
5. As you chat with ChatGPT, be sure to take note of any useful responses and any other advice or information they may give you and note it in your deliverable so that you can share it and receive feedback.
6. Use ChatGPT's answers and advice to develop your internationalisation strategy and achieve your business goals abroad.