Friday, 4 June 2021

Steps to Internationalize your Service Business (Service Marketing 04.06.2021)

Steps to Internationalize your Service Business

Internationalizing a service business is a significant undertaking, but when you approach it methodically and thoughtfully, it can transform your company and lead to incredible opportunities. Let’s take a look at the steps toward internationalizing a business.

 

1. Choose Your Expansion Country

Using reliable and accurate metrics, evaluate the market attractiveness of each country under consideration. Look for the best fit for your particular products and services, noting the following factors:

·                  Demand for your products and services

·                  Local regulations that would affect your business

·                  Taxation issues

·                  Licensing and certification

 

2. Conduct a Market Analysis

Tools like Porter’s Five Forces and the classic SWOT analysis can be beneficial in determining the advantages and disadvantages of setting up a business in specific countries. As you analyze your options, pay special attention to the external environment, since this will be the most substantial departure from your current operations.

 

3. Plan Your Market Entry

Will your current business model work well in the new country? To successfully enter the new market, you may want to consider acquiring a local business to capture their core business expertise. In this way, you can access local knowledge or make a strategic alliance with an existing company.

 

4. Evaluate Your Market Position

You know and understand your position in the current local market, but you’ll need to consider your positioning in international markets. Evaluate the competition and their positioning to help you find your own place. Some businesses find that they must seek out a new niche or modify their products to fit well in their new market.

 

5. Consider Your Targets

Due to differences in consumer taste, lifestyle, and spending, you may need to target different customers internationally than you do at home. Carefully analyze geographical, demographic, psychographic, and behavioral data as you narrow in on your target customer base.

 

6. Fine-tune your Services

Do your current products and services meet the needs of consumers in your target countries? Many businesses find that they need to adapt their products / services to suit the needs and desires of their international customers.

 

Market research will help you to determine demand in your target countries. If you can meet specific needs and wants of local consumers, your chances of success will increase substantially.

 

7. Evaluate Core Competencies

Once you’ve gathered about your market position, target customers, and products and services, it’s time to evaluate your core competencies.

 

Do you currently have access to the skills and resources you need to position your business internationally successfully? If not, do you know how to acquire those core competencies? Will you be able to hire locally for critical positions? Alternatively, will you need to relocate workers for specific jobs?

 

8. Analyze Supply Chain and Value Chain Options

Internationalizing a business requires attention to importing / exporting, franchising, regulations, and licensing. Do you have systems in place to manage all elements of your supply chain? How will you acquire everything you need in your new location? Moreover, how do the costs stack up with your current cash flow and budgetary requirements?

 

Consulting with an international business expert can help you to determine whether now is an advantageous time for your company to internationalize. Team up with an adviser who knows the ins and outs of the process.

No comments:

Post a Comment