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International
Business
At some point in its growth, almost every company, regardless of
size or industry, flirts with the idea of ‘going
international’. Maybe…
- Your product or service has truly global appeal.
- One of your biggest customers is going abroad, and you need to
follow them to keep their business.
- The domestic market is saturated and going overseas can extend
your product’s life cycle.
- An international competitor has set up shop down the street
and you need to maintain (or regain?) your competitive advantage.
- Concerns about our economy warrant a more diversified approach
to the market.
There are any number of reasons to consider becoming an
international company. (Or will you be Global?
Multinational? Multi-domestic?) Whatever your reason,
it’s time to figure out where and how.
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"Globalization has
changed us into a company that searches the world, not just to
sell or to source, but to find intellectual capital - the
world's best talends and greatest
ideas."
Jack Welch |
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Where: Deciding where you want
to open your first (or 30th) overseas office is probably the most
critical decision you will have to make. “Where” has a lot of
implications – politically, economically and
commercially. Every country has considerations for
…
- The most appropriate legal form for your company – a direct
‘local’ company, wholly owned subsidiary, joint venture or agency
relationship.
- The employees you can/should hire – direct, subcontractors,
local or ex-pats.
- Any tax consequences and compliance issues you will be subject
to as well as any US laws, embargos or sanctions you might
encounter.
- The risks of long term political stability vs short term
commercial opportunity
How: The
method of business operation is as important to your success as how
you market your services in your chosen country:
- Do you build, buy or partner? How important is timing to
your success? Is quick market entry more desirable than
building your own local foundation?
- How important is local knowledge? Is it easier to teach
a new employee your product set or train an existing employee on
local customs?
- Is any of your marketing re-useable? Will a quick
translation suffice or do you need to do a total re-write –
including look and feel? Does your American positioning and
messaging play the same way in your chosen country?
- What is purchasing power parity and how might it impact your
pricing tactics?
- Does your US copyright cover you around the globe?
Think Big
Thoughts Consulting has been helping company decide
where, when and how to ‘go global’ for years, from consumer
entertainment services to global business and consumer
telecommunications services.
Let us use our experience to help you
navigate the global expansion waters. |
