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The 21st century brought the internet boom, different communication channels, reduced time-to-market spans, and much more. The US Chamber of Commerce states that 95% of consumers reside outside the US. Therefore, scaling and expanding internationally presents a valuable opportunity for your business to tap into new markets and drive growth.
But expanding your business beyond the borders of your hometown may sound daunting, and it is indeed challenging. The biggest mistake you can make is to forget that you’ll be a guest in another country. So, what global expansion strategies can help your business grow while remaining authentic to your original brand goals?
This is extremely important because a global market is a whole different deal. You need concrete reasons to expand your business out of its home territory. Remember that the host governments and local entities will also try to gauge your long-term intentions.
Are you setting up a temporary branch just to market your new product? Or do you intend to establish operations in this new country? Be clear upfront about your level of commitment and the length of time you plan on operating your international business.
There is no denying that your objectives may change over time as your business grows into the new market, but your identity shouldn’t. And without clear goals, the entire endeavor could waste massive resources.
Definitely, before stepping out of the country, you must learn the customs of the place where you are going to expand. Comparing local culture and business understanding is central to the basic aspects of market research and segmentation.
Airbnb has expanded its operations to almost any part of the globe—220 countries to be exact. Why has their international growth been so remarkable? The reason is that they modify their listings in line with the demands of the local markets. For instance, in Japan, Airbnb accommodations include the locally known ”Kominka” traditional Japanese houses as a unique cultural experience.
Forging or joining global business alliances can help you quickly gain a foothold in new foreign territories. Steve Steinhilber, the author of Strategic Alliances, 3 Ways to Make Them Work, says that since 2011, over 2,000 global alliances have been established annually. This number increases by 15% annually.
These numbers aren’t surprising if you consider that partnerships benefit from established markets and distribution systems and increase innovation.
Your business can benefit from expert advice on modifying your product to meet local market preferences and government regulations. You can also work with a local team of experts to guide you on international business salary, culture, taxes etc.
Assimilating your business into a new culture requires mindfulness, dedication, and patience. Remember—no one is too good to fail in a new country. Whether you are a startup or an established company, following the three global expansion strategies outlined above can unlock new markets and revenue dreams for your business.
