1. Ensuring international expansion is the right step for your business
As businesses everywhere are crossing global borders, many businesses may be considering overseas expansion to maintain an advantage or stay on par with competitors. It is crucial to evaluate motives behind this decision carefully, as going abroad may or may not be the right choice for every business. As businesses may be limited with resources – internationalizing solely because competing rivals in other sectors or industries are doing so may not bring about the most desirable or sustainable outcomes. It is key to review business objectives and ensure internationalization contributes to long term goals.
2. Entering the right market
After reviewing company objectives, it is decided that going global is the right choice. Now management must determine which markets have the potential to bring about long term success. Once selected countries are narrowed down, a market feasibility study should be conducted beforehand to analyse if your business will be profitable in the desired location. Market feasibility studies will also analyse key barriers that may be encountered abroad. Some challenges may include regulations and taxation, identifying customers and competitors, manpower issues and facing cultural differences – to name a few. The results of the findings will conclude whether or not entering a specific market will prove successful or not.
There are many businesses in Singapore seeking opportunities abroad that may be hindered by financial limitations. For those concerned about costs involved for conducting a market feasibility study for global expansion, the Singaporean government offers eligible businesses grants to minimize expenses. During the process, consultants will be able to provide your organization with the expertise, resources and manpower needed to carry out the study.
3. Best mode of entry
Now that the feasibility study has proven your business has a chance of being economically prosperous, management should address the best strategy for entering the new market. Varying from country to country, this may already be predetermined based on government regulations. Identifying which approach works best for your business will depend on company resources and goals for structuring short and long term growth abroad. Even once management has predetermined the desired strategy, smaller scaled businesses and larger corporations alike may face difficulties in conducting research. Thus, the Singaporean government also offers grants to aid businesses for mode of entry studies. Consultants will again be able to work closely with management to provide the knowledge and resources needed for successful entry into new markets.