The businesses able to make important choices are always the ones that change the market: companies able to choose the path of internationalization, to choose a new way for the evolution or commercialization of their products. As a matter of fact, a company willing to grow cannot always reach its objectives being only present in the internal market, therefore an internationalization path is the answer for all those companies that focus their actions on increasing revenue and marginality.
Revenue growth: the path of internationalization
To choose the path of internationalization means to start with four questions:
- Why choosing the path of internationalization?
- In what countries should I internationalize?
- How to internationalize?
- Who can help me in my internationalization process?
Let’s now try to answer these questions.
1 – Why choosing the path of internationalization?
The first answer to this question is clearly revenue growth, especially when, in some cases, the internal market demand is not sufficient to allow a relevant increase of sales. To internationalize can indeed generate new market opportunities: obviously it allows the company to find new customers but, for example, it is also helpful to use a different pricing strategy and consequently improve margins. There are many possible answers: every company can choose its own path on the basis of its objectives and its business.
2 – In what countries should I internationalize?
This question is certainly more complex than the previous one. First of all, it is indeed necessary to define the criteria of choice. A simple answer may be to choose the countries with the greatest number of potential clients for your product. Another answer may be, on the contrary, to sub-segment the possibilities in terms of distance. This distance could be geographical, so a physical distance; it could be cultural, intended as language and approach to the business; it could be an administrative distance, therefore related to laws and regulations; in the end, it could be economic, intended as purchasing power or productive, logistical or technological capabilities. Usually, countries characterized by a higher similarity and less distance are more likely to close deals easily. About this subject there is a very interesting book entitled “Kiss, Bow, or Shake Hands (The Bestselling Guide to Doing Business in More than 60 Countries)” written by Terri Morrison and Wayne A. Conaway.
3 – What is the best strategy to internationalize?
In academic terms there are two different styles that answer to this question. The first approach is to treat every single country or region in a different way, therefore trying to meet the needs expressed by the target in a very specific way: in other words, differentiation becomes part of the offer made to the client, even though in terms of R&D and production it is clearly an expensive approach. The second style that can be undertaken in terms of internationalization is basically the opposite of the previous one. This approach considers the market as a single unit in which to convey the same message and the same product globally. Naturally, this approach can lead to some lost opportunities, some niches in terms of location or different cultures, but it is certainly less expensive than the first style.
4 – Who can help me in my internationalization process?
If a company does not have all the available resources, then it should open its doors to a commercial consultant or an active customer acquisition company. To understand the differences between these two entities, click here to read an article about this subject. As Vehnta we propose our process of digital active customer acquisition to support our customers in their objectives of internationalization. The key points of the Vehnta process for the active customer acquisition are Presence, Positioning and Engage. By Presence we mean the creation of an image of the company on the web, of the company brand as B2B on different digital channels, whereas by Positioning we mean the result of being present in the mental short-list of the potential customer when he or she thinks about the sector of the company. This result can be obtained with branding activity and ADV. The last step of Engage is focused on the creation of the first relation with potential prospects that then becomes scouting and first contact with marketing automation systems. The output of the process are semi-processed contacts that will be passed to sales department of the customer. For further information fill in the form in the Contacts section.
Internationalization is therefore the only choice for a company willing to grow – to grow quickly. Now it’s time to choose, because as James Joyce used to say “I am tomorrow, or some future day, what I establish today.”
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