Why companies go international?
With today’s global economy you are no longer competing only with companies in your city, state, or country. More than ever, we need to strive to think more openly and understand international markets.
International expansion can offer many advantages, including greater opportunities for growth and market diversification. The first and most obvious reason why companies go international is related to the company’s growth. Entering a new market provides businesses with the opportunity to acquire customers, increase revenues, and even reduce operational costs.
In addition to that, companies that expand into new markets are forced to innovate and improve their offerings to compete with local companies. Also, entering new markets will give them access to better talents, advanced market trends, and new technologies in their industry.
Finally, it also opens the doors to product diversification, as they can use international markets to launch unique products and services that can help maintain a positive revenue stream and improve risk management.
The combination of these factors can help you not only in new markets, but can also increase your competitiveness in your own country. Therefore, internationalisation can make your business stronger, more successful, and more profitable, as well as increase your brand recognition and credibility.
Take the right measures when expanding internationally.
International expansion is not a short-term initiative and it is not something that should be done by impulse. Entering a new market is a complex process that involves understanding many factors, in which market differences, business culture, regulations, payment terms, human resources, lead generation, negotiations, and translations are just some of them.
Therefore, it has to be done for the right reason and at the right time and requires research, analysis, and a lot of validation before any serious investment.
If there is a fundamental step in the internationalisation process, it is market validation.
Even products that meet global needs may have to be adapted to different markets. The local culture has a big influence on how people communicate, purchase, manage organizations, and do business in general. With that in mind, it is a must to be updated about local trends and understand if and how you can apply them in your market.
More than that, it is extremely important to validate your market assumptions, value proposition, and entry strategies as much as possible before making any bold move into the new country. By doing that, you will be able to understand if that country is, indeed, a good option for your company and how to adapt your business to the local reality with minimum risk involved.
Having the right network and connections is key to make you successful around the world.
Creating and using a solid network in your target market is crucial to support your market entry. Talking to internationalisation experts, local mentors, and potential customers can help you validate uncertainties and provide a broader and more practical perspective on your sector. These conversations will provide faster learning, bringing relevant information and deep insights about the country – things that could take you months to achieve by only doing desk research.
In addition to that, these interactions can help you identify and address potential challenges, avoid mistakes already made by other companies, and generate valuable insights to make you more competitive in that country.
Conclusion:
As you can see, internationalisation is neither a short nor a simple step, and it must be taken in the right direction, at the right time, and with the support of trustable partners. However, it is certainly one of the best and most promising paths your company can take.
To support you with that, the EU-India Innovation Center provides services to prepare European startups to launch and expand activities in India, supporting your market entry strategies and creating a solid local network.
Today India is one of the most dynamic markets of all, combining a rapidly growing and young population with a highly skilled and English-speaking workforce. It is the 3rd largest startup ecosystem in the world and hosts more than 35 unicorns, offering unique advantages and opportunities
Be a part of our community and have access to a select group of specialists, deeply engaged in the Indian and European markets, ready to take you to the next level.
