As companies look to expand their reach and tap into new markets, business internationalizing can be a crucial step to achieving growth and success. New territory penetration and access to new markets brings opportunities, but it also comes with its relative challenges. From navigating different cultures, regulations and business practices to building strong and effective local teams, the journey to successful market penetration requires careful planning and execution.
Throughout this article, we’ll explore the key steps and strategies which companies can use to successfully penetrate new markets and build a strong foundation for international growth. Whether you own a small startup or a well-established business, the insights and advice shared in this article will help you to navigate the exciting and complex world of new market penetration and business internationalization.
Oh by the way, we’ve broken this article into 2 parts for easier reading …
I. INTERNATIONALISATION RESEARCH
The thrill of taking your business global is unmatched. The promise of new markets, customers, and opportunities is exciting. But before you take the leap, it’s crucial to consider the key factors determining your success in new markets. That’s where research comes in.
The Consultancy Inc recently conducted research that shed light on the inevitable components for success in internationalization new market penetration. The findings were clear:
- accurate information,
- product distribution, and
- market knowledge
are of utmost importance.
Additionally,
- conducting ample research before market entry and
- embracing cultural diversity
were highlighted as critical success factors. And let’s not forget that your internationalization objectives must be coherent with your overall company objectives.
So, you’ve done your research and you feel ready to take the leap. What’s next?
II. INTERNATIONALISATION RECOMMENDATIONS FOR PRACTICE
- Firstly, selecting the right distributor is crucial. Choosing the wrong distributor could slow your market entry and hurt your penetration efforts in the new market. It can also result in low-quality products or services and therefore an inefficient new market penetration. It’s vital to select the right distributor as they will make your operation, and life, easier, and most importantly help to generate much needed revenues. In this context, we have put together a Distributor Checklist that you can consult to make an informed decision and select the most adequate distributor for your business.
- Thus, market research and thorough analysis of consumer needs and wants in the receiving country are super important.
- Having a strong support structure in place in your home country is also key. A support structure at home is familiar with the services and/or products you’re offering as well as your strategy as a company. It can provide all the necessary inputs to make smarter decisions in the new market or to manage crisis as they arise. Companies must be aware of comparative advantages, comparative disadvantages, country-of-origin advantages, and country-of-origin liability. In addition, other drivers such as, institutional learning, competitive learning, brand knowledge, brand history and story are important and are often heavily relied upon within new markets. For companies which are financed as well as staffed by the home country, the success of the expansion into new territories are highly dependent on the stability of the in-country structure. Taken together, these home-country drivers contribute to the success of the internationlisation effort.
Finally, taking your business global is an exciting adventure. But it’s critical to approach it with a strategic and well-informed mindset. By conducting research, embracing cultural diversity, and following recommendations for practice, you’ll set yourself up for success in new markets.
So, are you ready to take your company or startup to the next level and penetrate new markets? Don’t go at it alone! The Consultancy Inc is here to help. With our extensive research and years of experience, we have the knowledge and expertise to guide you on your internationalization journey.
Email us at service@theconsultancyinc.com
