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Updated: Aug 17, 2022

To date, almost all businesspeople have considered, at some point of the trajectory of their business, to export their products as an alternative to face the current situation and then being able to access international markets that could offer them new business opportunities.

Companies must carry out an internal analysis before going abroad. Internationalizing means to work with a global market and to be subject to a lot of competition. Companies deal with people from different cultures, languages, and habits when they go abroad. Internationalization implies getting away from your comfort zone and a difficulty added to the company production process, even though it is worth following this path. That is why on this post we will talk about the 5 main reasons why companies should expand their business to other countries: INCREASING SALES AND PROFITS If your company is succeeding within the national market, a global expansion will probably improve total sales. Growth rates in Europe, United States, and Japan are really low in comparison with big new emerging markets. It suggests that clients are global and, if the company looks beyond its borders, there might be an actual growth potential. Sales in the external market might have as well a higher price (a margin) than the internal market. Many imported products are paid as premium products and brands. Thus, more sales in the external market usually bring more profit. INTERNAL MARKET SATURATION There are some products, which in specific markets, have already reached the maturity stage, or even worse, the decline stage. If your company is in this situation in which the growth pace is stagnant, or even negative, it is time to look for growing markets if you intend to keep the company main activity. RISK DIVERSIFICATION Internationalization may have the aim of protecting the business against internal risks (such as a new law that impairs the company), national crisis, change of behavior of the local audience, etc. INTERNET The importance of taking advantage of the internet as a communication channel, which enables you to exhibit and divulge products and/or services globally, with no physical barriers, facilitates the relationship with clients in any market. Nowadays, the great technological advance is helping us a lot when it comes to business internationalization and it is an opportunity we cannot miss. The ways of bonding with clients are evolving and we must take advantage of online marketing. GAINING PRESTIGE IN THE INTERNAL MARKET Your business can gain prestige in the internal market by conveying a great image of the brand. The international projection of companies implies giving them added value in the form of raised prestige and a good image of the brand. In most sectors, participation in a leading foreign trade market would be a prerequisite for qualifying as a global brand or leader, even if the profits of this market were small.

The process of company internationalization should begin with a detailed planning, it should include of a study of the company itself, the economy of the foreign country, your competing market, target audience, among other features. For entrepreneurs or professionals, who want a thoughtful planning, we offer a complete advisory service in the field to help you as best as we can.


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