Post by account_disabled on Mar 10, 2024 3:38:10 GMT
A common component of the internationalization process is the need to make decisions without having a first-hand view: a strategic plan for the internationalization of a company is an unfinished map that must be completed as the company delves into its layout and implementation. .
However, it frequently happens that prior risk analyzes are underestimated, postponed – particularly in smaller companies – or the possible return on investment is overestimated. In any case, dedicating resources to entering an external market requires a great deal of analysis of the main risk factors, effects of the environment and its changes - changes in the market, new competitors -, and their possible impact on the company's activities. company.
Overview
Taking the time to gather the members of the team in charge and draw up the structure of the project is essential; Having the perception, proposals and identification of the participants with the project is the first step towards its success. In addition to the necessary knowledge about the sector, the company and the markets considered for a preselection, the ability to adapt, inventiveness in the face of the uncontrollable and unknown, and observation and communication skills are essential tools for the project.
Destiny (or, the one we like the most is not always the best)
In other words, both the booming market of rapid Ecuador Mobile Number List growth opportunities that everyone flocks to, and the safe, stable and saturated value that is the goal of so many companies, require careful consideration of their minimum potential, risks of the country, desired degree of control by the company, minimum profits, return on investment, competition, legal requirements regarding customs, production standards, marketing, etc., intellectual property and its protection, ease or obstacles for distribution , among the most outstanding aspects.
Advantages and disadvantages
The next element of the process is to analyze the strengths and weaknesses of the company facing the foreign market – its products, competitive advantage, key activities, less productive or profitable operations, vulnerability to possible changes in circumstances in the environment, objectives based on the limitations and potential of the market and its segments, in addition to their capacity and resources to meet demand: experience, knowledge, financial resources.
Naturally, this analysis must also be applied to competitors, as well as determining what advantage(s) can make it possible to connect with the market compared to what is offered by national competitors. In the case of foreign competitors, how have they managed to enter? It is necessary to examine what challenges they pose to the company in terms of its product offering, logistics, distribution, the emergence of new competitors to monitor, and what weaknesses can be taken advantage of. Without this knowledge, progress towards the next steps will be very unlikely.
The market and its specific demands
Any effort invested in investigating changes and trends in consumer segments will be little; Briefly, it is possible to summarize the key points of this step by answering the following questions: How do the current offering of services and products satisfy your needs? What adaptations are necessary to comply with local regulations and ensure acceptance in the target market? How do adaptation costs impact profitability, or even the possibility of market entry? Are there segments to which it is possible to offer a range of features similar to those offered in other markets? At this point it is also necessary to analyze the required production volume, qualities, yields and losses, capacity required for this and its utilization, in order to determine the additions to the production capacity, inputs and labor necessary.