The need for a company to expand internationally is typically derived from growth expectations or characteristics of the (niche) product itself but can also be a result of the pull-effects from a specific region.
Global markets have become tighter and competition ever so much fiercer which have
lead companies to carefully analyze and project intended launches. This has further triggered entry of new strategies like the Blue Ocean Strategy to provide tools for creating uncontested new market space that expand conventional markets. Young and small organizations may well find their best opportunities in such environments.
Taking a business international is, nevertheless, a major strategic action for any company. Such a decision must fit within the overall strategic intent of the company, its business idea and corporate structure as well as the ideology of the management and owners. It is politely argued that businesses carefully evaluate the following 6 Do’s of Strategic International Business Planning:
1. DEFINE – What is the overall strategic intent of the company and why has this been chosen? is it perhaps to Think Big / Think Big over time / Think low risk / Think Niche / Think Strategic Partnership / Think OEM / Think own organisation or something else.
2. DEFINE – Would specific markets offer a unique market opportunity? Explain why and in what way. Alternatively consider would generating a new market be the right thing to do?
3. DEFINE – Would you be able to reach out for an ideal strategic partner that could commit strongly or are you on our own?
4. DEFINE – Based on earlier experience, recommendations or market propositions are you prone to follow any given modus operandi? What is our ideal operational choice and why?
5. DEFINE – the cost structure of our business. What policies do you have regarding social media, production, customer service, product development or adjustment etc.
6. DEFINE – Does your business idea come with a proposition that can raise venture capital, private investment or other external financing for a more rapid market penetration? Alternatively, do you want to grow organically with a 100% control at this point of time?
An evaluation of the prevailing strategic intent and market propositions will offer alternative scenarios for you to work on. You may want to consider e.g.:
– A bridge-head strategy with strict roll-out plans on a larger market defined as lucrative for your purposes. Such strategy can be based on own corporate operations in addition to a strategic partnership.
– A smaller market that might offer a unique market opportunity (with a relaxed cost structure).
– A market that offer suitable conditions for market testing and obtaining of a proof of concept for further commercialization.
Analyzing our prevailing strategic event and market propositions will give us different scenarios including budget frameworks, cash flows and financial requirements to consider.