After understanding the numerous benefits of global expansion and creating an effective global expansion strategy, you should now consider improving your company’s chances in the competitive global field. It is clear how essential widespread international expansion has become and how fierce the competition in each market has grown in the passing years. It is now crucial more than ever to gain a competitive advantage over your business opponents. However, it is not just a matter of business survival. A competitive advantage can also contribute to creating higher prices, an influx of customers, and brand loyalty. This article’s purpose is to point out significant strategic points that could serve as a competitive advantage for your expanding business.
Strategic Point No. 1: International Marketing
There are two different marketing tactics when expanding your business to foreign markets; the first is global marketing and the second is international marketing. The difference between these two is in their customization approach. Global marketing views the world as one big market and refers to a single marketing strategy applied everywhere. International marketing refers to a country-tailored product strategy, where every strategic decision is made with consideration of the local marketing environment. While both of these marketing tactics have their benefits and drawbacks, international marketing has the potential of being better suited for the long run. With an international marketing approach, you can obtain:
–Business expansion: the usage of business units and subsidiaries in various countries makes for a better business expansion.
–Better market understanding: only when you truly understand the market can you customize your product to suit its needs better. There is nothing more valuable than recognizing the needs of a market you wish to dominate.
–Customer engagement: customer engagement is relatively high due to the local presence and multiple communication channels. This sort of engagement is of strategic importance and can help you get ahead of the competition.
–Avoid PR mistakes: what is appropriate in one country can perhaps be offensive in another. Cultural consideration is an essential aspect of international marketing. If it is done wrong it may lead to a PR scandal, at its worst.
Strategic Point No. 2: Innovation
Adopting an innovative mindset will ensure the longevity of your brand and create the competitive advantage you need to stay relevant in today’s ever-changing market. Innovation is the keyword for every successful company, and as such, it is one of the most desired traits in the present business world. However, not many companies place innovation as their top priority. Instead, they worry about efficiency and stabilization above all else. It is understandable because innovation can be a rocky road. It is not safe or predictable. But if done correctly, the reward is outstanding.
To introduce innovation into your organization, you should take the test-and-learn approach. This requires taking risks and reflecting on your mistakes. Thinking outside of the box and trying different ideas can occasionally lead to failure or unprofitable results. However, do not let that discourage you! The key to innovation is learning and adapting, and if you follow through, you will eventually create something worthwhile. With that in mind, know that it is okay to put efficiency and cost aside to allow a place for creativity and fresh ideas for long-term growth.
More than anything else, innovation is about creating an improved end-product for your customers. You should want to create a product with an added value that will differentiate you from the competition. To do so, you must genuinely understand the needs and wants of your customer base. Only when you know that can you work towards what is amiss and create something innovative and successful. This point sheds light on how important international marketing is as a strategic choice.
Strategic Point No. 3: Professional Alliances
Trying to establish your roots in a new market is complicated as it is. There is no reason why you should be doing it all alone. Forming a strategic partnership with local companies is a great way to integrate into the foreign industry smoothly and painlessly. There are three types of alliances that you can consider for your expanding strategy: joint venture, equity strategic alliance, and non-equity strategic alliance. The latter makes up the vast majority of business alliances, and it is often more loose and informal than the other two options. In the case of only gaining a competitive advantage, you might want to consider forming non-equity strategic alliances with a local organization. The main benefits of a professional alliance are:
–Sharing resources and information: when entering a brand new market in a foreign country, information is the most valuable thing you can receive. Even when you think you have done your thorough research beforehand, it will never hold a candle to the knowledge a local and experienced company in the field can share with you. Regulatory issues, business culture, local competition, and the market’s demands and needs are only some of the things you have to know to gain a competitive advantage.
–Increase awareness of the brand: partnering with a local company can help bring awareness to your brand. As your brand is a new face for the local market, not many will know you at the start. A professional partnership is needed to ‘introduce’ your brand to the public and gain their trust. It is quite a quick and easy way to gain recognition and emerge better with the local market.
–Produces innovation: by now, it is clear how fundamental innovation is for creating a competitive advantage. There are many cases of how professional alliances had led to innovation and evoked great change. When an alliance is made right, and the exchange of ideas is at the heart of the partnership, there is more creativity and drive for innovation.
Whether big or small, companies strive to get ahead of the competition as they worry about being left behind. Gaining a competitive advantage above everyone else, especially while expanding to a foreign market, is not an easy fit. However, it is very much possible. Using the three strategic points written above is a great way to begin, as they will help you compete and even win in this competitive global market.
We at Xinergy Global can help you take things further and make sure that your brand always remains at the head of the competition, no matter how fierce. Contact us for more information about our expertise and strategic solutions.