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Taking your business to the next level of operation is something the majority of business owners look forward to. If not done well, business growth can often lead to missing out on great opportunities due to the ad-hoc strategies that could lead to logistics problems, lack of communication, and missed marketing opportunities.
Taking your business to grow on a global scale is a big deal! That’s why this article explains the common steps to expanding globally and helps you understand marketing strategies to succeed with ease.
These include choosing the right strategy for expansion, determining the right markets for your business, hiring a team with a global-first mindset, and understanding the targeted markets.
Here’s everything you need to know about global expansion to help your business boom!
What is Global Expansion?
Global expansion is a business growth strategy that involves entering new markets abroad. When planned accordingly, and with the right partners, global expansion can boost your profits, reduce the risk of failing, and most importantly, help the business to grow faster than ever.
Access More of the World
Part of opening a global business is the need to be able to access more of the world. To do this, some business owners opt for a second passport. Many countries offer foreigners the opportunity to invest in their country in order to get a citizenship and passport in exchange. This, in return, can give them better access to tax strategies and visa arrangements. Such a country is St. Kitts and Nevis.
The St. Kitts citizenship cost depends on the type of investment, whether you’ll be purchasing real estate or donating to national funds. Consult an authorized organization and check your rights and the perks of participating in a CBI – citizenship by investment – program.
Choosing the Right Strategy for Expansion
The first step in choosing the right business expansion strategy is the structural model, and while many brands tend to expand their business overseas without considering many factors, globalization doesn’t fit all businesses.
The business strategies for global expansion are:
- International Strategy: This strategy focuses on the imported and exported services and goods within the country. It has one main office in the home country.
- Transnational Strategy: The transnational strategy has local subsidiaries in a variety of countries and one head office in the home country that works on assembling the best-centralized operations. Examples of companies that use the transnational strategy are Nike and Coca-Cola.
- Multi-Domestic Strategy: The multi-domestic strategy focuses on the needs of the local market while using an international marketing approach to shift the focus to the locals. The company employs strategies to understand the culture of the local markets and identify expansion opportunities. Companies like Johnson & Johnson use this strategy for expanding their ventures globally.
- Global Strategy: The global strategy is developed to increase sales worldwide. It involves analyzing global customers, competitors, and production sites.
In case the chosen strategy doesn’t work for your business, you can adapt to the new trends and implement another strategy that will be more suitable for your business model.
Determining the Right Markets for Your Business
Once you’ve determined the right structural model and chosen the best global expansion strategy, it’s time to consider the market entry strategy. Whether it’s via franchising, exporting, or licensing, these strategies align with different sections of the business model.
These are the common market entry strategies on a global scale:
- Exporting: Exporting is a common market entry strategy where businesses engage via direct and indirect exporting through a distributor or a third-party reseller.
- Licensing: The licensing market entry includes two companies from different countries that receive rights to manufacture products in a third, foreign country. These rights are obtained via a license.
- Franchising: This is a strategic way to boost profits and future revenue worldwide while reducing dependence on domestic demand. Franchising involves minimal investment, low risk, and many scaling opportunities.
- Joint Ventures: This is a form of partnership between two sides that create a third one that is managed independently. These two companies agree to work together in the market and share the profits and risks equally.
Hire Top-Quality Talent
For a business company to be successful one thing is crucial – people. The global expansion strategy hinges on the hiring and staffing plans.
The greatest benefit of working as a global business is accessing top-quality talent from around the world, and it’s useful to have people who have first-hand knowledge of the new market and culture you’re diving into. Capable individuals are the driving force of your business operations, so make sure you have qualified people working for you.
There is an old saying in marketing to “understand your audience” and then focus on the growth of your business. This is especially true when you’re expanding your business globally.