Are you an entrepreneur with a ‘Type A’ personality? You probably have ambitions to see your company on a list of top multinational companies in the world. Here’s how to successfully build a global company…
7 Steps To Building A Global Company
You are running a successful business, the local response is excellent, and you feel it’s high time you expanded to different regions. A good idea!
Expansion can bring more:
- New expertise
- Diversification of risks
- Reduced costs
- New investment opportunities
Before venturing, it is essential to understand that the local market needs may not be the same as the international market. For instance, when Great Plains Industries was venturing into the global market, to gain relevancy they had to make adjustments to their operation.
How do you make your brand internationally acceptable? Curious how to make yours a global company? We walk you through seven steps for success.
Do Thorough Market Research
As you will realize, local and international needs may differ. Your products may be doing well locally, but you may have to do some work before they are accepted internationally. Before anything, you need to find out if:
- The products are well known in the target region
- The products are culturally acceptable in the region
- The infrastructure of the new region promote growth
- You will be comfortable and safe conducting business in the region
If you don’t get clear answers to these questions in one region, you should try another region of the world. The global market is vast. Therefore, continue your search until you find an area where your business can thrive.
Even when introducing a new product, with the right strategy, you can find an favorable ROI. First, pinpoint your target location(s). Then make the efforts to successfully grow your business.
Learn The Culture
As you will find out, the new region’s culture may be different from your local culture. This impacts how to brand and market your products.
It pays to visit the area and spend some time learning the culture and getting to know the people. The more you understand the culture, the better you can brand and market your product to suit potential customers. For instance, a language acceptable in one region may be insulting or not understood by others.
Also, some colors, packaging material, and shapes of products may do well in one region and not in another. Climatic conditions may also play a role in designing your products. If you are currently operating in a cold area and want to move your products to a hot region, the packaging may change to protect the products.
Craft A Mode Of Operation
Do you want to have a physical presence in the new region? Decide if you wish to set up a shop, a distribution point, or manufacture everything from the new area. Check whether setting up a local manufacturing branch is less expensive than importing the products to the new market.
Whatever arrangement you use:
- Check the local regulations
- Get the required licenses
- Obtain any necessary work permits
You may also decide on a virtual arrangement of communicating with customers from the new region online and then shipping the products to specified destinations. This is cost-effective because you will not need to hire new employees or set up an office or manufacturing unit.
However, before settling on an online business, make sure the region understands and accepts online trading, and has the necessary infrastructure to support an online business.
Engage Local Experts
Local experts may have the insights you need to speed up processes. They understand:
- The local market
- The government regulations
- The infrastructure
To win their hearts, assure them you have the region’s best interest at heart. Let them know you and your company are willing to work with the local communities to:
- Establish the product in the market
- Create jobs
- Get involved in developing the region
You will have to:
- First, visit the region
- Familiarize yourself with the culture
- Champion the people
- Accept local business customs
And understand the area’s concerns before reaching out to the expert individuals you need.
Learn The Local Language
It is easier to penetrate a market if you understand and speak the local language. The locals will embrace you, and there will be fewer communication barriers. That translates to smoother business operations.
If you speak English and want to venture into a non-English speaking community, it can be frustrating. Progress might be slow due to the communication barrier.
The more you familiarize yourself with the local culture and language, the more you will act and live like them. You will be regarded as less of a foreigner, and the locals will be comfortable trusting you and your brand.
Formulate A Marketing Strategy That Supports A Global Company
Marketing strategies vary depending on the country or region. Find the most effective marketing model, then utilize it.
You may find that social media marketing may be more effective in one area than billboard marketing. Television and radio advertisements may be influential in remote areas where the internet is not widely used.
Your market strategy should impact the new region. In turn, use the local language and visual designs that will appeal to the target market.
You may also want to consider gender and age preferences when marketing your products and services. If your concept is gender or age-sensitive, craft your message and brand to appeal accordingly.
Determine The Price Of The Products
Foreign market prices may differ from your home markets. You have to consider the cost of producing the product in the foreign region as well as the cost of exporting.
Another consideration is the purchasing power of your target markets. If you set your prices too high, you may lose potential customers. On the other hand, you may not break even if you set the price too low. Set a friendly price that will help you stay both relevant and competitive.
It would be best to implement local payment options, especially when most transactions are online. Familiarize yourself with the local currency and exchange rates.
How do you take care of taxes, current exchange rates, and payment options? Research the possible payment options and consult local experts before implementation.
Summing It Up: Global Company vs. Multinational Company
Also realize that operating in a global environment is different than operating with multiple country locations. Both take your business international. However, being a multinational company takes more time, effort, and investment.
Making your business go global may seem like a lot of work, especially when starting, but it’s worthwhile in the long run. With enough preparation and research, you can establish a profitable business in a foreign country or multinational region.