How to Become a Global Company
Becoming a global company is an effective strategy for businesses experiencing plateauing sales or encountering a domestic market that is saturated with competition. While becoming a global company is often thought of as a strategy for large corporations, it is achievable by smaller companies with the help of the U.S. government's online resources. Businesses of all sizes can take advantage of increasing their market share and bottom line by moving into the global arena.
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Instructions
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Find the optimal method of entry. Businesses can enter the global market by exporting, licensing, joint venture or direct investment. Depending on the goals of the business, each of these methods has different advantages and disadvantages.
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Research to find countries open to foreign entrance. The reality of becoming a global business is that the company will be exposed to new regulatory issues that do not exist within the United States. Some helpful resources for researching regulatory environments of different countries are the Department of Commerce and The World Bank.
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Examine potential countries to see which are the most attractive. This involves determining the size of your target market, consumption and production of competitive products, income level, education level, pricing demands, demographic trends and economic stability.
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Access the competition. List all the major competitors, the extent of their market saturation, what they offer customers and any barriers to entry for new businesses.
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Prepare the company. When entering a foreign market, the business may need to make sure that its suppliers can handle this increase in sales plus any issues related to the shipping and distribution of products. Hire additional vendors or employees. Train those in direct communication with operations in the foreign country on the country's customs, values and traditions.
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Move to one country at a time. Since many unexpected things can occur when moving into a foreign market, become a global company by moving to one country at a time. This ensures that you will not be overstretched if the unexpected arises.
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