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Market share in a local region is limited. When businesses stop growing locally and/or domestically, it’s time to consider global expansion. Working alongside an international marketing consulting firm can help, but there are a lot of questions that must first be answered.

For example, which markets offer the best opportunities for your business?

There are various obstacles in entering a new market. Therefore, a careful look at the new market must occur to assure that your product/service will be accepted.  A great deal of time and resources will be needed for each country you expand into.

However, we’re going to answer a few common questions for businesses interested in global expansion.

 

Global expansion - countries to expand business, strategies for global expansion

Why Companies Enter Foreign Markets

Global expansion is often a necessity for businesses. When a company has reached its peak potential in one country, or if there is potential for faster growth in another country then expanding into foreign markets makes sense. Additionally, expansion into foreign markets may be due to:

  • Investment opportunities
  • Reducing costs
  • Capitalizing on market trends

Various factors can lead a company to decide and expand internationally. For example, If a company’s revenues stagnate, and at the same time a foreign market exhibits similar purchasing habits, but lacks products to satisfy demand. 

If talent is lacking in a company’s main country of origin, global expansion may be necessary to stay ahead of the competition.

When a market matures or government policies change to promote business growth, it may also make sense to expand into it. For example, let’s assume that a supply company that caters to providing technology startups with key logistics wants to expand into new markets.

Although domestic to us, Austin continues to surge as one of the top American tech hubs. It has regained roughly 96% of pre-pandemic related job losses, which is significantly higher than many other American tech hubs. Austin has a very positive tax structure for tech companies and is located central to many great Universities which allows it to attracts a bright and diverse workforce. Consequently, a number of international companies are moving to Austin like Israeli-based Rivery and REE Automotive, South Korean company Samsung is building a $17 billion dollar chip plant, to name a few. This also doesn’t include the many American companies like Apple, Facebook, Google and Oracle.

Diversification in business is crucial, and global expansion offers the option to diversify income and grow your business.

Many influences will play a role in why a business moves into global expansion. However, one of the primary considerations should be which country to expand into.

Best Countries to Expand Business Into

Global expansion must be tactical. Therefore, you must choose your country of expansion diligently, and it’s imperative to perform extension market research before the process begins. However, based on the general performance of markets at the time of writing this article, the following countries are the best to expand into:

  • Singapore: The leading Asian country to expand into is Singapore. Businesses will benefit from exceptionally low corporate tax rates, easy business incorporation and a friendly country for foreign investors. The workforce is skilled and highly educated, too.
  • Spain: Due to Spain’s geographical position, it’s a superb option for expansion. The country is one of the fastest-growing in the business world and unlocks access to the European Union. Additionally, you’ll have close access to well-defined relationships with the Middle East and Africa.
  • Ireland: A small nation with low taxes and increased public spending, Ireland remains another good option to expand into European markets.

You’ll also want to consider countries like Denmark and Norway, which offer great business opportunities and advanced infrastructure.

Global Expansion: Strategies for Expansion

Expansion into new, exciting markets takes a very strategic approach. There’s a lot that you need to do to make the expansion a success, and a few of the main strategies should include:

  1. Creating a product strategy: Test your product in the country. Adjust and adapt it as necessary, and then work to create an edge against local competition.
  2. Research the market: Start with international research. Is there a demand in the market? Can you maintain strong profit margins after expanding? Who will be your main competitors?
  3. Partner: Do you have or can you find a partner in the market that knows what consumers expect and their behavior? If you can partner with another person or business, your chances of success improve.
  4. Hiring: Working with market leaders and top talent is necessary. Hire the brightest minds in the country, and work with marketing teams that understand how to market in your new region.

You’ll have a lot of work ahead of you. For example, you’ll need to localize the product, find suppliers, work with new supply chains and much more.

If your research dictates that it’s a smart choice to expand into foreign markets, start the process. However, you need to work with a team to improve your odds of success.