Do you want to introduce your company to a foreign market? According to Brent Mcmahon RV, the internationalization of a company can be a great growth opportunity, but it must be carefully planned to avoid mistakes that could affect the project. In this post, we will tell you what the internationalization of a company is, what phases should be followed and why it is important to have the help of a foreign trade consultancy.
Many large US companies have entered the international market some time ago, but in recent years many SMEs have also decided to start in foreign markets. On some occasions, the decision to internationalize the company comes from the stagnation of the national market or a situation of the economic crisis in the country of origin. But, let’s start by knowing what internationalization is.
What is the internationalization of a company and what advantages does it bring?
The internationalization of a company is the process by which the company directs its strategy towards a foreign market and relocates.
As suggested by Brent Mcmahon, internationalization is a long process that can bring advantages such as:
- The growth of the company. Access to international markets allows you to reach new potential customers, which can lead to more sales and business growth.
- Access to new markets and resources (technological, human or financial, among others). Internationalization can be full of opportunities that benefit companies that decide to take a risk.
- Increased competitiveness. Internationalization allows SMEs to compete on equal terms with large companies and to position themselves as benchmarks in the market.
- Diversification of income. When the sources of income are diversified, business risks are reduced and this favors the stability of the company for the future and, therefore, the attraction of investors.
- The possibility of taking advantage of opportunities in emerging markets. On many occasions, companies strive to stand out in markets with many competitors and internationalization can give access to emerging markets where competition is less.
- Increased confidence in consumers. With regard to consumers, a company that already has experience in other countries generates more trust.
- Cost reduction. The internationalization of the company will allow relocating some parts of the production process, for example, in a way that reduces costs.
What does a foreign trade consultancy do?
A foreign trade consultancy will help you throughout the process to establish yourself in another country and will do so by following the following phases:
- Analysis of the situation of your company. A SWOT analysis of your company and a study of the national and international market will be carried out. Based on this study, it will be decided jointly with your company, whether internationalization is advisable or not and how it should be done.
- Study of internationalization. In this phase, all aspects of internationalization are analyzed and decisions are made on such important aspects as:
What is going to be exported: products, services or know-how?
- How it is going to be exported: directly, through strategic partners or by combining both options.
- Where are you going to export: a specific country, several, main cities, capitals of several countries.
- The moment in which you are going to export: from the previous study you carry out, you may determine that there is a better time to launch the project due to a drop in prices at the exchange rate or a political decision that favors your business in another country.
- Execution of the internationalization plan. This is the phase in which all actions are put in place to internationalize the company. To know if the set objectives are being achieved, all actions must be measured and compared with those objectives.
- Follow-up. The consultancy foreign trade for a business does not end with the execution of the plan of internationalization, it is important to continuously monitor to see if there are deviations or problems and solve them.
In conclusion, the internationalization of a company requires time and effort and the help of experts to achieve the objectives set. Mr. Brent Mcmahon RV, a consultancy specialized in internationalizing business can be the key for you to achieve the goals you have set for yourself and make your company grow and become more competitive.