Quick Answer: How Can A Company Expand Internationally?

What are the 4 growth strategies?

There are four basic growth strategies you can employ to expand your business: market penetration, product development, market expansion and diversification..

What are the benefits of international business?

What Are the Advantages of International Trade?Increased revenues. … Decreased competition. … Longer product lifespan. … Easier cash-flow management. … Better risk management. … Benefiting from currency exchange. … Access to export financing. … Disposal of surplus goods.More items…•

What are the pros and cons of international business?

InternationalThe pros.Improved visibility of the brand. … Increased revenue with more product exposure. … Less vulnerability to changing trends. … The Cons. … Currency fluctuations can do away with profits. … The politics of host countries affect the business. … Conclusion.

Why do some companies choose not to go global?

Companies lack the size and the resources to go abroad. These companies may lack the resources for finding and managing overseas customers, partners, and suppliers. Some 15% feel international expansion is just too expensive to pursue.

Why would a company want to expand internationally?

Taking your business international allows you the opportunity to diversify your markets, so your revenue is more stable. … Expanding abroad allows you to get out of a saturated market. Expanding abroad gives you access to new customers and in a market where your competitors do not operate.

How a company can go global?

Small businesses can enter the global market by selling directly to customers in export territories, marketing products through a local distributor, participating in a joint venture with a local business partner, or selling through a website.

What are the challenges of international business?

11 Biggest Challenges of International Business in 2017International company structure.Foreign laws and regulations.International accounting.Cost calculation and global pricing strategy.Universal payment methods.Currency rates.Choosing the right global shipment methods.Communication difficulties and cultural differences.More items…

Which companies use global strategy?

Global Marketing StrategiesRed Bull.Airbnb.Dunkin Donuts.Domino’s.Rezdy.World Wildlife Foundation.Pearse Trust.Nike.More items…•

How do you sell globally?

First things first: Put a plan in place.Find your target markets. Like any new venture, it pays to do your homework. … Consider how customers want to pay. Next, start thinking about how you’ll get paid. … Pay close attention to regulations. … Think about shipping and returns. … Plan your market entry.

How do businesses grow and expand?

Extend Your Market Reach There are several ways of growing your business by making your product or service available to a new pool of customers. … Encourage new uses for your product: Discovering and promoting new ways to use your products or services allows you to encourage existing customers to buy more.

What are the disadvantages of international business?

Here are a few of the disadvantages of international trade:Shipping Customs and Duties. International shipping companies like FedEx, UPS and DHL make it easy to ship packages almost anywhere in the world. … Language Barriers. … Cultural Differences. … Servicing Customers. … Returning Products. … Intellectual Property Theft.

Why do business want to expand?

Business expansion has the potential to expose your products and services to a broader audience. Increasing your customer base will help you convert more customers and improve your sales. This leads to higher profits. Just like your team members, customers are important to the success of your business.

When should you expand a business?

Here are five ways to tell if you are ready to start business growth.You Have Regular Customers. You must have regular customers. … Your Customers Want You To Grow. If your customers keep asking you to grow, it might be time to grow. … You Have Regular Profits. … Your Industry Is Growing. … You Have Too Much Business.

What are the benefits of expanding internationally?

Advantages of International ExpansionEntry to new markets. … Access to local talent. … Increased business growth. … Stay ahead of the competition. … Regional centres. … Cost of establishing and termination of an entity. … Compliance risk. … Business practices and cultural barriers.More items…•