Why Going International?

Most companies tend to stick to what they know. This isn't necessarily a bad thing as it's important to have a good understanding of your business also in a geographical way; however, it becomes detrimental when the blinders are put on and people refrain from learning about other markets. Going International, in particular, is a strategy sometimes overlooked by companies as a means of diversification.

Going International can also be dictated by needs for an efficient banking system, by reliable communication systems, by offering legal structures to participate in international tenders, by concentrating worldwide activities.

Ways to Go International ?

Simple export of goods
Develop a joint venture to sell through an existing sales company in a similar field
Sell a license and collect royalties
Contract a foreign company to do the business for a %age of the sales
Set up your own structure

Reasons for Going International

Reactive Reasons
Response to demands that are discovered in other regions
Competitors are moving international
Regulations in environment/work safety/labor laws may be easier
Costs of production forces to go off shore
Windows of opportunities open
Clients move, suppliers have to follow
Proactive rasons
Strategy seeks out advantages
Beating competitors by being first
Power and prestige
Lower costs of labor, energy, production

The Process

From Choice to Plan
Must we be more international ?
If Yes : Are we capable and have enough management capacity?
If No : Should we be more international ?
From Plan to Action
What will be the entry mode ?
No foreign ownership
Joint Ventures to which degree in which structure
Sole Ownership in which structure

There are many traits and traps in the process of evaluating above steps. Get support through inside knowledge, tips and links gained by practical experience.

RUScenter helps to get the wheel rolling without reinventing it.