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					Deciding Whether Your New Market Should
be Abroad
If you’ve been thinking about expanding your business into a new market you may be trying to
decide whether to go abroad or stay domestic. This can be a complex decision with much to
weigh out. Most companies would rather stay domestic if the market share is large enough. After
all, it’s far less complicated and less costly to do business in a local market.

When you are deciding whether you new market should be abroad, you need to consider the
following:

        Your managers and staff may have to learn a new language
        Laws will have be learned and understood
        Currencies can be volatile
        Political uncertainties
        Legal uncertainties
        Redesigning of products to suit the customer needs of the new market
        Meet customer expectations

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If you enter a global market and can compete product wise and with lower prices you have the
opportunity to be very successful. There are several reasons why a company might choose to
enter a global market.

        Opportunity for higher profit than the current domestic market
        Enjoy a larger customer base
        Allows a company to reduce its dependency on one market
        The company’s customers are moving abroad and you follow to ensure you keep that
        market share



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Reasons for companies to fail when entering a market abroad include:

        The company doesn’t fully understand the culture of business in the foreign country
        The company doesn’t know how to deal with foreign nations
        The company underestimates the costs to move into a foreign market
        The company doesn’t fully comprehend foreign regulations
        The company does not have adequate management with international experience
        Political uncertainty, devaluation of the currency, and changes to commercial laws

Traditional markets and the boundaries that defined them are a thing of the past. Today’s major
marketers participate in global e-commerce. Look at the automakers who have reached into
every part of the world, or Nike the running shoe company.

For others marketing into a foreign market has been more of a hit and miss scenario. Many
businesses are using the internet to branch into the foreign markets. Before a company decides to
expand into a foreign market either physically or through web e-commerce you need to consider
all the pros and cons. Only then will you know if it’s the right decision for your company. If the
abroad market is right for you, the next thing you’ll need to decide is just how many abroad
markets you plan to infiltrate.




© 2011 Apptivo Inc. All rights reserved.

				
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