Over 16 million companies are operating in the world. Some are big corporations while others are small startups dreaming of making it big in the corporate world. Running a domestic firm is not easy. However, when you later expand to an international market, you realize how challenging the landscape suddenly becomes. You can be a very successful business domestically but might not do well when you enter global markets.
Yes, there have been success stories. Coca-Cola started off small and later went to rule the international markets. Now, 94% of the world recognizes the brand!
Do you wish to become a success story that people talk about in years to come? If so, here are features you need to excel in to make it big as an international business.
1. Understanding And Molding Your Business To The Cultural Differences
Remember, the world is not a homogenous place. Every country is different from another. Each state has its own culture. As an international business, you must ensure that you understand and alter your business model according to the culture. Merely using a word translator to translate your communication into a country’s language is not enough. You must change your communication keeping in mind the culture of the country.
Moreover, you must also decide whether your product is even of value to the international market. Is it meeting their needs? If it isn’t, you must re-evaluate your decision to go global, or at least change your product to tap into a desire of an international market.
Here are some questions you need to ask yourself to ensure that you understand the culture of the given market:
• Does your product/communication offend cultural values and principles of your target audience?
• Are there are any language barriers? (Remember KFC’s infamous disaster of translating Finger-Lickin' Good in Mandarin!)
• Are there any religious considerations that could hamper your business operation in the country?
• Are values of your business aligned with the values of the country? (for instance, in China Apple’s communication of a laid-back attitude was not preferred since they believe in being proper)
2. Localization
While there was a time when companies succeeded in international markets with a standardized product, those days are long gone. Now, the audience prefers some degree of localization. For example, if your company produces phones in the USA, and wish to now expand to the Asian market, there are specific changes you will have to make. While the localization might not be a lot, it still has to exist. Ask yourself if you are willing to or are able to localize your offering according to the needs of the international market. Decide how much localization is needed. One thing is for sure; you will need to localize your marketing campaign. This is where options like The Word Point will come in handy. This is because this will allow you to translate your communication to the language of your choice after you are done making it specific to the country.
3. International Partners
You can’t expect to enter a foreign market as a lone wolf and expect to succeed. Instead, you must form a close partnership with an international partner if you wish to excel. This is because unless you have someone vouching for you, you won’t be able to get your new potential audience to trust you.
Therefore, you must be well aware of the different businesses operating in your target country. Form strategic partnerships with them. Decide whether you want to export your product and sell it via them or wish to form a joint venture. Regardless of what you do, you need local support and partnerships are the best way to go about it.
Apple, one of the biggest companies of today, also had to form a partnership with China Mobile to enter the China market. Partnering with this company is what allowed Apple to gain the title of being the number one smartphone manufacturer in China!
4. Being Well Aware Of The Legal And Regulatory Barriers
Each country has its own set of laws and regulations. More often than not, these laws are more tough for foreign companies. This is because each state wishes for its domestic firms to thrive and hence may set challenging rules for international businesses.
To do well in international markets, you must be well aware of all the regulatory constrictions. You need to work within the system and follow it to the core. To decide whether the regulations and law are favorable enough for you to operate in the country, review the following:
• Laws concerning labor and employment (minimum wages, employment conditions, etc.)
• Level of duties imposed
• Export and import laws and restrictions placed
• Ease of doing business (registration process)
• Laws about dispute resolution
• Custom and tax laws
Make sure to do this review in the presence of your legal advisor. Get someone on board who deals with overseas businesses. This helps in better analyzing the feasibility of operating in a market given their laws and regulations.
5. Knowledge And Intercultural Competence
There is a reason why your business did so well domestically. You are bound to have acquired knowledge and competence along the way. The trick is to transfer all this acquired knowledge to your business unit operating in the foreign country. However, know when the skills are no longer applicable. Merely using the same tricks don’t work in an international market. You must use the acquired knowledge and combine it with intercultural competence to be genuinely successful in a global market.
Conclusion
Running an international business is not easy. There are various things you need to excel at before you can begin reaping sustainable profits. However, today’s world is a global village. If your business is a success in the domestic market, the chances are you would want to expand it globally sooner or later. Don’t be afraid to do so. Just make sure you are equipped with all the features discussed above. You will then be ready to rule the world.
Author Erica Silva Erica Silva is a business blogger who loves to discover and explore the world around her. She writes about everything from marketing to technology, science and brain health. She enjoys sharing her discoveries and experiences with readers and believes her blogs can make the world a better place. Find her on Twitter: @ericadsilva1
I hope you enjoyed this blog post about what your business needs to have to do well in the competitive international market.
Interested in more articles about becoming a global business?
Read Related Resources:
• Should Your Company Compete On The Global Stage?
• How Affordable Is It To Go Global?
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