We interviewed 10 financial decision-makers from international growth companies to summarize the global growth demands they faced. We also highlighted their tips and different approaches to overcome these challenges. In this blog post we share their valuable insights on how to solve the challenges of international growth. For more information – download the report.
Solution 1: Careful background work and choosing the right partners
Choosing global partners will considerably contribute to the administrative tasks of a new market. Local consultants and service providers serve a crucial role, especially in creating a new company, recruiting and training employees and in supporting daily administrative activities. Local knowledge and experience are necessary for these critical tasks.
Solution 2: Market strategy
There are various methods for a company to enter international markets, and a single strategy does not work in all markets. Direct exports may be a suitable strategy on some markets, whereas others may require the establishing a subsidiary. There are various factors for choosing a strategy, such as compatibility with the market as well as marketing and transport costs.
Different strategies for entering international markets are listed below:
- Direct exports
- Partner agreements
- Joint ventures
- Turnkey projects
Solution 3: Readiness for change
Readiness for change, flexibility and swift decision-making are vital for international competition. Technology and new innovations are developing rapidly and market trends are constantly changing. Openness to new ideas and viewpoints helps companies to develop in the desired direction and to better respond to the target country’s demand and customer needs.
Solution 4: Correct infrastructure
International companies will certainly face system changes and integrations and it’s better to handle those issues with a partner. Business platforms and systems should be put in place with the help of an international partner. Long-term cooperation is built with the right partners on business processes and system solutions that guarantee a stable foundation for the market to build business.
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Solution 5: Adaptable customer service
Companies operate differently from country to country. Your company needs to be aware of the infrastructure it must operate with in order to be able to compete with the target country’s supply. Depending on the country, customers may expect deliveries to arrive on the day following the order, or they may be used to customer service being available 24/7. If your company is not able to fulfil these expectations, the risk of failure will increase. Local customer service is a good solution.
Solution 6: Choosing the correct team
Hiring personnel for the new market is one of the most critical things to invest in right from the start. It is important to make sure that the team has enough employees to be able to start operating in a new market effectively.
The following should be kept in mind:
- Establish a local office and team
- Hire a local country manager
- Employees should be trained according to the target market’s requirements and to understand the new business environment
- The goals and methods are common, regardless of cultural differences
- Establishing the company’s strategy to the markets
Download the report for additional information
We hope that this blog provided you with useful information on how to overcome the international growth challenges. By downloading the entire report, you can study the subject in detail and make full use of the insights provided by the financial decision-makers we interviewed.