Glocalization 

Adapting Your Business to a New Market

Expanding internationally is something many companies want to do but do not know how. There are many options for international expansion and what works for one company may not necessarily work for another. In addition, just because your company is successful in its current market and country does not mean that it will be a success another country. So, when looking to take your business abroad, it is important to make sure that you conduct market research and learn about that country’s laws and regulations.

To get a better understanding of this, lets take the example of a successful chocolate company looking to expand into the United States. In the US, there are four main actors in this market (Hershey, Mars, Lindt and Nestle) that account for 89% of the total market value. You analyze these companies but still think that you offer something they don’t. Through your market research you also learn that the chocolate market experienced a 2.1% in volume and totals $19 Billion. Now you definitely want to enter this market. However, upon further research, you realize that the US FDA has high food safety regulations which means your company will be tied up trying to get FDA approved. Then, perhaps you realize that this market is very concentrated and it might not be that easy to just open a store and be a success.

So, how do you successfully expand into the United States?

If the market is concentrated by big corporations, like the four mentioned that are also global brands, you need to get creative. Look to see what the market is missing but people want and need- be innovative. Another option is partnership. Partner with an already established, large, successful brand. Offer your product to be paired with theirs; so, when people buy their product, they get something of yours as well. This builds brand awareness through a strong partnership with major brands. Or, for example, in your market research you find out that the global chocolate industry has rising demand but, by 2020, it’s expected to run out of cocoa… Perhaps your company grows its own cocoa beans, leverage that and help improve the cocoa supply. Maybe this is not exactly how you wanted to expand but, it is a way to get your company known and enter the US market.

It is important to remember that markets vary, especially when you’re expanding internationally. What works in your current market or country will not necessarily work in another. You may have to change your business model to be successful or change your product offerings. When expanding, make sure you do a thorough market analysis to learn the best mode of entry and minimize the risk of failure.

Need Help Successfully Expanding into the U.S?

CEO of ITAG Gives Insights into the Biggest Mistakes People Make When Entering the U.S Market

Business in the U.S is a contact sport in which others are already selling to your potential customers. Competitors are providing services to the clients you hope to reach and others are providing technology solutions to your potential users even as we speak.

Since there are already established, successful competitors in this market you seek to enter, your success will depend upon more than quality, service, technical superiority or even a favorable price.  

Why do so many would-be exporters dabble in the U.S market? One reason is that opportunities to travel to new markets frequently present themselves in the form of trade missions and trade shows. Given the opportunity to test the waters, many companies take advantage of the chance to meet potential customers. 

Only a few of these companies achieve the desired sales because they haven’t properly priced their product or service, considered the intricacies of shipping and logistics, arranged for service after the sale or even taken the time to understand the competitive landscape. So, they travel and come back more informed, yet, no closer to a sale than they were when they left.

Another reason companies pursue global markets, particularly the U.S, before they’re ready is that it is human nature to hope for the best. It is the same reason people purchase lottery tickets- Somebody has to win, right? So they pack up their company literature, get on the plane and hope they’re in the right place at the right time.

Not much of a strategy.

Let me give you a few more wrongdoings I see on a regular basis:

• Approaching the market as its local market without acknowledging the cultural difference.
• Recruiting resellers, distributors and expect that will do the job for you. As weird as it may sound to foreign entrepreneurs, U.S resellers are very conservative and prefer working with renowned and established vendors than new products.
• Massively investing from day one to open the subsidiary, recruiting the team, contracting with law firms, accountants, payroll, etc. Thinking it is just down to money.

These are all recipes to failure. Big time.

Thanks to ITAG for filling its customers in with the” I-don’t-know-what-I-don’t-know” piece.

ITAG brings its unique experience and expertise in:

• Pushing new products to the U.S market
• Taking its customers from “early adopters” to “market recognition” stage
• Using sales’ best practices
• Gathering a seasoned team
• Activating its network of contacts and partners
• Blending with its customers’ team

The U.S market is very competitive and expects from its vendors a pragmatic and professional approach :

• The ability to articulate the value proposition to its market
• Having a clear positioning and messaging in regard to competition
• Neat marketing material
• Responsive and irreproachable support
• Sales and Support best practices

ITAG is a turnkey solution to get up to speed in no time and the fastest way to generate revenues.

Through a respectful, constructive and energetic style guided by the defined objectives, we provide the leadership and vision necessary to ensure that our customers have the proper operational controls, administrative and reporting procedures, and people systems in place to effectively grow the organization and to ensure financial strength and operating efficiency.

-Founder & CEO, Daniel Baloche