With the internationalisation it is necessary to be aware of a risky business decision. It represents a possibility of a business growth resulting in an increased revenue. Many companies are facing this strategic issue, questioning themselves whether to expand the business in foreign markets, what markets are the most suitable, when and how to enter.
Opportunities for business growth and development of enterprises
The business expansion in foreign markets opens up numerous possibilities for further growth and development of the company, however, if the company successfully operates in the domestic market, this fact doesn’t necessarily bring a success in foreign markets. If the company is already successful in facing the foreign competition in the domestic market, there is a high probability that it becomes successful in foreign markets with an adequate approach. The internationalisation of business is possible in different forms, both with an independent entry in the foreign market, as well as networking with foreign partners. With the presence and operation in the various markets the company acquires new dimensions of experience and learns. Such broadened scope of competition has positive effect in terms of encouraging the continous development of the company and its businesses as well as products and services, and thus strenghtens its position and the existence in the markets.
Expansion of business in foreign markets
Expansion of business in foreign markets is a long-term project that requires a lot of perseverance, effort, and financial resources. Company has to make a realistic estimate in which foreign markets it is most likely to succeed. The company will be successful in foreign markets only, if they focus gradually, market by market. Even though a demand for company’s products and services exists in several foreign markets, the management of the company needs to check the possibilities to balance an increased demand with its output capacities as well as financial resources. From the experience we know that the entry into foreign markets causes significantly higher costs than initially planned. The company is therefore recommended to make a professional and adequate balance of the benefits and costs, related to this strategic decision. The costs for the foreign markets research, products and services adaptation to foreign markets, related business trips and other unplanned costs, can in the long run become an insurmountable obstacle, resulting in a company’s withdrawal from the expansion decision into foreign markets.
Furthermore is business internationalisation a process in which the company has to be aware of the cultural differences. Each company with high moral and ethical principles should consider and respect this fact at all leves of operation in accordance with the business customs and etiquette.
The Business internationalisation consists of the following consulting services:
- Consultancy at the stage of taking a decision either the Business internatonalisation is the right decision or the company is adequately prepared for the entry,
- Consultancy in setting up the appropriate foreign market entry strategy,
- Consultancy in preparing foreign market entry business plan,
- Consultancy for defining the search criteria of matching business partners in foreign markets,
- Analysis of the matching business partners in foreign markets including their credit ratings and business financial data,
- Establishing relationships with the matching foreign business partners,
- Assistance and coordination in setting up a branch or company in the foreign market and
- Assistance and coordination of the client’s activities in a foreign market.