1.3 Internationalization stages: planning and controlling
The reasons for which this strategy can be carried out are diverse, but the main one is to be able to increase the percentage of profit managing to project the trade in another country and thus to be able to cover greater market share.
Before taking the decision to internationalize our trade, we must know what the current conditions of our country are, both economically and product level. One of the most important things in this process is to know well what we are going to internationalize in order to find the competitive advantage both in our market and in the foreign market.
It should also be borne in mind that it does not mean the same thing to internationalize our company in Europe as outside it because the legal effects of this change will influence the course of the development of that strategy.
- Do an internal analysis: the first step is to analyze whether the company is prepared to acquire the necessary productive capacity to meet new market demands. It is important to know if there is enough financial capacity to cover the costs, if the product has enough potential to make a niche and if it is suitable for all markets.
- Setting up an export department: it will be difficult to deal with all the challenges that lie ahead without an export area to manage the company abroad. Among other things, it will be necessary to create a website, achieve market positioning, participate in international congresses and fairs, etc.
- Commitment to innovation: companies that go international stand out above all for being innovative, be it in the product, the originality of the article, the most striking packaging or new payment systems.
- Choosing markets: social, economic, political, cultural or legal factors of the country to which you plan to export must be considered. Each territory presents a series of specific peculiarities that must be considered in order not to encounter barriers when marketing the products. A good example could be the type of currency or customs laws.
- Search for a marketing channel: the sales channel changes depending on whether a product or a service is marketed. In many cases the physical presence will be required for the sale, and if so, it is best to do so through a local partner directly. The presence in the country of destination helps to acquire extra knowledge about the needs of the market and to know better the preferences of the clients.
- Promotion: marketing and communication help to make a new brand known. However, there are new methods to sell a product in a more effective way, ranging from neuromarketing, to SEO or growth hacking.
- Strengthen internationalization: once the company is established in the foreign market will have to create the figure of the export director and possibly have to increase investments to assume the fronts that are opening.