THE IDEAL TIME TO INTERNATIONALISE
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Is now the ideal time to go international? "0 Born global.
In the past, it took many years before a newly established company was considered ready to sell in other countries. Today, however, it takes many years for a newly established company to be considered ready to sell in other countries. There are more and more cases of startups that have internationalisation in their genes. In Silicon Valley, the born global have long ceased to be the exception, and in other parts of the world with a less benign entrepreneurial climate - including our own country - there are already beginning to be some notable examples.
La internacionalización es un proceso crucial para las empresas que buscan crecimiento y diversificación. Con el fenómeno de las «born global», empresas que desde su inicio apuntan al mercado internacional, la internacionalización ya no es un paso secuencial después de consolidarse en el mercado local, sino una estrategia inicial. Este enfoque global desde el principio permite a las empresas aprovechar oportunidades en el mercado internacional, superando las limitaciones del modelo tradicional que recomendaba una expansión gradual basada en la experiencia acumulada y los recursos disponibles.
La decisión de internacionalizar debe considerar varios factores clave, como la solidez del modelo de negocio en el mercado local, la capacidad financiera para soportar la expansión, un equipo preparado para los desafíos internacionales, y la demanda de productos o servicios en el extranjero. La era digital y la globalización han facilitado la internacionalización, ofreciendo nuevas formas de financiación y permitiendo a las empresas ser competitivas desde el inicio. Empresas como BuyVip en España han demostrado que con un equipo con experiencia internacional y una estrategia bien definida, es posible conquistar mercados internacionales de manera eficaz.
Para evaluar el momento ideal para la internacionalización, es esencial realizar un análisis detallado de la situación actual de la empresa y del mercado objetivo. Herramientas como el Pasaporte al Exterior de ICEX pueden ayudar a identificar fortalezas y debilidades, mientras que un enfoque estratégico y realista, combinado con el uso inteligente de tecnologías y alianzas, puede marcar la diferencia en el éxito de la expansión internacional. Con la planificación adecuada y una ejecución estratégica, la internacionalización puede ser un paso decisivo hacia el crecimiento y la competitividad global de la empresa.
START AT HOME
You must have the outward vocation from the beginning, and success in a first market is a prerequisite before you go to other markets. You have to consolidating the business model in the domestic market firstThe export department is then set up to exploit the commercial opportunities spontaneously detected in the closest and best known countries.
Once the importance of international trade justified it, the company could dare to penetrate into more distant geographical and cultural areas! According to this model of organic growth, which experts christened Uppsala, internationalisation is a gradual process that builds on the experience and resources that the company accumulates.
This minimises the risks, at the cost of delaying the exit to the outside world.
In the early stages, the entrepreneur concentrates his efforts on the market he knows best. Opening up to other countries is the result of prolonged learning, always backed by the resources that the company is able to generate. It is therefore a question of a path that fits the circumstances that have traditionally surrounded SMEs. Initially founded to supply local demand, by entrepreneurs with no knowledge of languages or familiarity with foreign countries, and dependent on banks as a source of finance.
THE GLOBAL BORN ERA
However, the advance of globalisation has for some years now brought about a still modest but growing number of projects - especially those related to new technologies - whose business plan incorporates from the beginning of the strategy to extend the business beyond the country's borders.
THERE ARE TWO REASONS FOR THIS:
- The first is that it is increasingly common for the entrepreneur and/or the team he/she surrounds him/herself with to already have international experience before launching the company.
- And secondly, because financing mechanisms have appeared which, unlike bank credit, do not focus on the repayment capacity but on the revaluation of the company..
Thus, a type of global champion emerges that is characterised by having an international vision from the outset, possessing highly qualified human capital and making intensive use of ICTs, the intelligent use of networks of collaborators and strategic alliances, and constant innovation in all areas.
In contrast to the speed and flexibility that characterise the born globalThe appropriateness of the sequential internationalisation model is increasingly being questioned. This is because making expansion conditional on domestic market consolidation is a missed opportunity. that can be taken over by competitors or simply cease to exist.
THE BUYVIP CASE
- We can all think of many examples of successful Silicon Valley companies that respond to the idea of born global. But the truth is that there are also some in Spain.
- BuyVip is one of them and the steps he took to conquer the Spanish, Italian and German markets almost simultaneously are well documented.
- This online outlet can be considered a paradigm because of the profile of its promoter team. The founder himself was a professional forged in multinationals and startups technological projects in Spain and abroad.
- The differential value of the projection towards some of the major European markets from the outset is significant.
- In fact, these two factors were what seduced both the funds that bet on BuyVip in its early stages and, a few years later, the Internet giant that founded BuyVip. Jeff Bezos.
WHAT IS MY INTERNATIONALISATION POTENTIAL?
- With the online tool Passport to a foreign country from ICEX you will be able to test your potential abroad and identify your company's strengths and weaknesses.
WHAT INTERNATIONALISATION ALTERNATIVES CAN I CONSIDER?
- The most direct way to internationalise the company is by exporting products or services.
- We can do this through a intermediary. In this case, we would in fact be selling locally (to this intermediary or trader) for others to do the work for us.
- But we can also make a direct exporti.e. the sale from the source market to the distributor in the chosen market.
- In this case, the company would be responsible for managing the entire process until it reaches the distributor at the destination. It involves a higher risk but also a higher volume of sales and more control.
- There may also be an export with direct sales to consumers, through agents who receive a commission.
- Or through the concentrated exportsThe Commission has also identified a number of cases in which it has been able to identify the most appropriate measures to be taken in order to ensure that the EU is able to provide the best possible assistance to the target country.
- Examples can be found in thes export consortiawhere several companies that are not in competition with each other, are of similar size and are from the same country, work together to export in a common way.
- Also, in the joint-venturesThe "exporting" process, which occurs when two companies from different countries end up forming a single company in the country where they want to export.
The latter example would be a form of intermediationwhich goes beyond exports.
AT THIS LEVEL, WE FIND OTHER FORMS, SUCH AS:
An agreement for the local agent to exploit the company's patents, technology and know-how.
An agent uses a trade name and everything related to the brand to open a business in exchange for a price.
They are based on a business relationship with a local producer, but where all processes are controlled.
The decision to internationalise a company requires, as we have seen, the following a calm analysis of the situation and a realistic strategy. Thanks to international companies, national companies are integrated into the global economy, and this brings many benefits to society. You can complement the information obtained in this TIP with this video (+).
In order to know if it is the right time to internationalise your company, several key factors need to be taken into account.
Here are some questions you could ask yourself to assess whether it is the right time to internationalise your business:
DO YOU HAVE A SUCCESSFUL AND PROFITABLE BUSINESS MODEL IN THE LOCAL MARKET?
Before expanding your business to other markets, you should make sure you have a solid and profitable business model in the local market. If your company is not yet generating profits or has not established a stable business model, it is probably not the right time to go international.
DO YOU HAVE THE FINANCIAL CAPACITY TO SUPPORT INTERNATIONAL EXPANSION?
International expansion can be costly and require significant investment in marketing, advertising, staffing and other associated expenses. Make sure you have sufficient capital to finance expansion and minimise risks.
DO YOU HAVE A STRONG TEAM READY FOR INTERNATIONALISATION?
Internationalisation can be a complex process and requires a team with specific skills and knowledge. Make sure you have a strong team that is well prepared to meet the challenges of international expansion.
DO YOU HAVE THE KNOWLEDGE AND EXPERIENCE TO EXPAND YOUR BUSINESS TO OTHER MARKETS?
It is important to have a good knowledge of the market you are expanding into, including regulations, business culture and the local market. If you do not have experience in the market you want to expand to, it is advisable to hire a consultant or an agency specialised in internationalisation.
IS THERE A DEMAND FOR YOUR PRODUCTS OR SERVICES IN THE INTERNATIONAL MARKET?
Before expanding into other markets, it is important to assess whether there is demand for your products or services in the international market. Do market research to assess the demand and competition in the market you want to expand to.
Assessing these key factors will help you determine whether the time is right to internationalise your business. Remember that internationalisation is a complex process and requires careful planning and strategic execution to be successful.
To use the ChatGPT to analyse whether it is the right time to internationalise, the entrepreneur could ask specific and detailed questions to the language model.
FOR EXAMPLE, YOU COULD ASK QUESTIONS SUCH AS:
- Is my company in a strong enough financial position to meet the costs of internationalisation?
- Am I seeing an increase in demand for my products or services that could justify expansion into other markets?
- Do I have a strong team experienced in international management?
- Am I familiar with the legal and tax requirements of the foreign countries I would like to expand to?
- How can I identify the most attractive markets for my company in terms of size, competition, culture and regulations?
ChatGPT can help the entrepreneur answer these questions and provide recommendations and advice to make informed decisions on internationalisation.
However, it is important to keep in mind that ChatGPT is a tool and the answers it provides should be considered as guidance and not a definitive answer. It is important for the entrepreneur to consult with experts in the field and conduct proper research before making any important decisions for his or her business.
HERE ARE SOME PRACTICAL EXAMPLES OF HOW TO USE CHATGPT TO ANALYSE WHETHER IT IS THE RIGHT TIME TO GO INTERNATIONAL:
ASK CHATGPT ABOUT CURRENT TRENDS IN THE INTERNATIONAL MARKET:
- What are the current international market trends in my industry?
- What opportunities exist for my company in the international market?
- How can I take advantage of these opportunities to internationalise my company?
ANALYSE YOUR COMPANY'S FINANCIAL SITUATION WITH THE HELP OF CHATGPT:
- Does my company have the financial resources to meet the costs of internationalisation?
- How can I finance the internationalisation of my company?
- How can I minimise the financial risks of internationalisation?
ASK CHATGPT ABOUT YOUR COMPANY'S ABILITY TO COMPETE IN THE INTERNATIONAL MARKET:
- Does my company have the capacity and know-how to compete in the international market?
- How can I adapt my business model to be competitive in the international market?
- What human and technological resources will I need to compete in the international market?
ASSESS YOUR TEAM'S CAPACITY FOR INTERNATIONALISATION WITH THE HELP OF CHATGPT:
- Does my team have the necessary experience and skills to internationalise the company?
- How can I prepare my team for internationalisation?
- What kind of resources should I provide to support my team in the internationalisation process?
In a nutshell, Inteligencia Artificial (IA) can be a useful tool to get information and guidance on the right time to internationalise your company. By using specific questions, you will be able to get clear and concise answers that will help you make the best decision.
APPLY THIS TIP TO YOUR PROJECT
NOW THAT YOU HAVE READ THIS TIP, ANSWER THE QUESTIONS:
- Why are you at the right time to go international?
- If it hasn't arrived, what are you missing? What is your deadline?
CASE STUDY OF AN ENTREPRENEUR WHO WANTS TO KNOW IF HE IS AT THE RIGHT TIME FOR INTERNATIONALISATION AND IS USING CHATGPT TO FIND OUT.
Juan is the founder of an IT product design company. For some years now he has been considering the idea of expanding into the international market, but he is not sure if this is the right time to do so. He has been following the economic and political situation in different countries and has been researching the rules and regulations of the international markets he is interested in.
To get a better idea of whether it is the right time to internationalise his company, John decides to use the ChatGPT. With the help of the chatbot, John asks several questions about the right time to internationalise his company, such as:
- What factors should you consider before internationalising your company?
- How can I assess the demand for my product in international markets?
- What strategies can help me minimise the risks of internationalisation?
- When is the best time to internationalise my company?
Thanks to the ChatGPT's answers, Juan gets valuable information on how to assess the demand for his product in international markets, how to minimise risks and when is the best time to internationalise his company. In addition, the chatbot gives him advice on how to adapt his business model to international markets and how to select the right markets for his company.
After talking to ChatGPT and reflecting on the answers, Juan comes to the conclusion that his company is not yet ready to internationalise and that it is better to wait to consolidate his business model in the local market and to generate the necessary resources for internationalisation. John also decides to continue using the ChatGPT to learn more about internationalisation and to assess the right time to expand his business in the future.
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