International expansion is when a company decides to launch its products outside the geo national market to which it had been primarily established.
Expanding internationally can allow a brand to grow their customer base and create additional revenue. Before going international however, companies need to plan the launch meticulously.
What type of businesses look to expand?
Tech companies that perform well in their primary market aim to expand into other locations, their positioning in their former market is necessary in supporting their upcoming move. It is also important to have existing references, strong foundations and sustainable, which help ensure the success of the international launch. in addition, some of these organisations may have received an investment from a venture company. This step allows them to accelerate their international commercial deployment while intensifying the development of high value services.
What to consider when looking at expanding your business?
There are a few key points to consider having when looking to expand, one of which being a ‘market entry strategy’, but above all a solid market to focus on. You might want to go to UK, France or Germany which can provide great opportunities, but only if the opportunities are quantifiable and justifiable.
It is important to first analyse the market landscape which will enable you to make the right decisions for your business which includes the below key elements:
1 - Opportunities: Identify a “sweet spot” you would like to address primarily. A “Sweet Spot” is your ideal customer, the one that have a need for your products and services.
2 - Barriers: Make a list of the elements that could work against your success in this specific market, for example, language barriers, cultural differences, lack of brand awareness, getting the right people and especially regulatory compliance (which government laws/influence can impact your strategy - including employment regulation).
3 - Competition: Who are the main players? Analyze your competitors and identify their strengths and weaknesses. Identifying and analyzing competition in the potential market can provide tremendous insights into how to expand in and around that market.
4 - Presence: Survey the landscape to find out if you have an existing customer base, prospects or opportunities.
It is essential to take time and think carefully about these points as they will help you elaborate your expansion plan and strategy. However, some startups can reach international markets almost directly after launch. Example of SaaS, which makes the product adoption much easier. They still need to be strategic to move from a local region to some international markets.