Internationalization

of companies

REQUIREMENTS.

INTRO

Most importantly, the company leadership

must have a clear understanding of why

they want to grow internationally. Their

vision of global success must be tempered

with the recognition that international

business is not simply an expansion of their

domestic operations beyond their own

shores. It is very much a different business

with additional requirements,

considerations and cautions than they

have known before.

5 basic requirements for company to go global:

Select A Selling Technique:electronic commerce, establishing a branch office, or affiliating with a firm already established in the market.

Formulate An Export Strategy:the firm's export objectives, both immediate and long term; specific tactics the firm will use; scheduling of activities, deadlines, etc.

Select Marketsthe firm must select markets it considers "ideal" to initiate its export activities.

Obtain Expert Counseling:specialists who will provide export counseling and assistance as well as brief the firm on export programs and services.

Assess the Export Potentialthis assessment should include a look at industry trends, the firm's domestic position in the industry, the effect it may have on present

operations and the status of the firm's resources.

REMEMBER:

Plan your strategy."It takes far more time to extract yourself from problems created by lack of planning than it would to

do it right the first time.“

Get expert adviceExpert advice is not cheap, but it pales in comparison to the costs, missed opportunities and possible

damage.

Take into consideration firm`s credibility and potential of the company to conduct

international business;

Management commitmentThe best strategy is to have a local general manager with a support staff.

When you sell internationally, you need to make sure that the items you're listing can

legally be sold in other countries, as the applicable laws may be different to your own

country.

Beware these reasons companies fail at

international expansion!

Going abroad simply because the domestic market has little or no growth is a bad reason.“Too many times, that kind of thinking results in adding a lot of new costs

that don’t deliver new value”

Product or service doesn’t fit the market, or even more commonly, that

the pricing is way out of line with what customers are willing to pay.

Adequate and objective market research can help avoid this pitfall.

Local expenses may include higher taxes such as a value-added tax

(VAT), additional fees and assessments.

Assuming business will be done in English. Familiarize yourself with the

local language.

"It is the height of ignorance to expect other people to learn our

language to buy from us."

SOURCES

WIKIPEDIAi: “internationalization”

E-bay: requirements for selling internationally;

VENTURE VILLAGE.eu : “international expansion fail”

entrpreneur.com : “how to take your company global”

www.ita.doc.gov: “how do I do global ?”