The World Is Your Business Oyster, But What Waters Would Be Best For Your Expansion?

The term international business makes it sound like, once your company is established in one country, you’ll be able to take on the entire world in one foul swoop. But that’s not entirely true.

In reality, business growth and steps into international waters tend to happen more gradually. Instead of setting your sights on unrealistic world domination, it’s important to begin by choosing the most sensible international markets for your brand. 

Unfortunately, that goal isn’t always simple to achieve, but it is possible if you follow the following four steps towards judging international compatibility. 

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# 1 – Market Analysis

You need to analyse any market before considering whether it’s a viable prospect for your business. This analysis should be thorough, and will include anything from local regulatory environments for business compliance to a market’s economic stability and growth rate. Infrastructure should also feature here, as countries without the necessary infrastructure might struggle to accommodate your company in any lasting way. By compiling your understanding of all of the risk factors mentioned and more, you’ll begin to understand whether there are opportunities for your brand to perform well in specific countries or not. 

# 2 – Competition Analysis

It would be ineffective to try and bring, say, an electric car brand, to an already saturated market like those in the US or China. As well as instantly pitting yourself against local companies who will work to outperform you, you’d be the outsider trying to breach local manufacturing focuses. It simply wouldn’t work. Of course, it’s nigh on impossible to find a market that’s entirely free from your focus areas, but thorough competitive analysis makes it possible to find a market where you can see a gap for yourself in some form. This is the best way to differentiate and do well. 

# 3 – Demand Analysis

Demand also matters a great deal for growth. If you’re aiming to bring something like a mindful birthing app to a country like Japan, where birth rates are notoriously low and 29% of the population is over 65, you’ll inevitably struggle to find a foundation. During demand analysis, you can determine both whether there’s a market for your offerings, and precisely what that market is looking for in terms of the specific products or services you choose to launch. As well as ensuring there’s a place for you, this makes international success far more likely. 

# 4 – Distribution channels

Even if you’re entering an uncompetitive, demanding international environment, it won’t work if you can’t easily and affordably get your products here. Considering distribution channels can help you to understand viability, and determine the best distribution options available to you. These might include direct selling, online selling, or international order fulfilment as offered by brands like J&J Global Fulfilment. During these considerations, it’s worth thinking about timelines, budgets, and the levels of customer satisfaction possible with each option. 

Choosing the best international markets is about more than simply putting a pin in a pretty location. Perfect your global practices by putting these pointers into action for any new market you consider.