Business internationalization process
Every company created dreams of growing and growing, among these objectives, it can be established that the internationalization of a company is one of the most relevant. Every business organization wishes from the beginning to reach larger, more important and more competitive markets. That is why becoming an international company is one of the most relevant, as well as one of the most challenging.
Internationalization is a slow process, whose acceleration will depend on the fundamentals of the organization. That is why there are fundamental differences between export and internationalization. In general, exporting is always mandatory as long as a great success is achieved. Internationalization becomes a complex process, so we will explain the internationalization processes of a company.
Phases of the process of internationalization of companies
As has been mentioned, in the first place, the business organization must deal with the issue of exportation. A business must be clear about the expectations, as well as the setbacks that arise when entering the international market. That is why various phases will be presented throughout the international route.
market evaluation
A company wishing to go international must therefore learn as much as possible about the target market. You must consider all your possible competitors, as well as established prices and possible profits. Some companies in this sense, choose to sponsor themselves under an already established brand, to start exporting their products. This would be an occasional export, providing extremely important data, for your specific product.
How do I know if my company in another country will work? Indeed, with data a clearer future can be established about the situation of the company in the country that wishes to establish itself. Without data the company is doomed.
That is why the use of the tool Zoho CRM will allow you to obtain the data of your company to determine the feasibility of the project, as well as collect the data that will allow the company's inefficiencies to be easily evaluated to improve its weak points by automating processes and increasing the company's productivity.
international activation
Once the precise data about the behavior of the product in the international market is at hand, a first export can be started. In case of not having exported yet, data of similar products in the chosen markets are handled. It is this step that can be considered as the first, in the race for internationalization.
The products in this phase are sent to specific markets, where there is already a known business base. There is no fixed number of products, since its success is not known. Cleverly few units generate relevant data captured with Zoho CRM. Also at this stage partners and collaborators wanted. In the same way, qualified personnel must be available, especially if we touch a market with a language and culture different from that of the main company.
international growth
At this point, the company has taken some experience in the international field. They have already obtained important numbers according to sales made previously and they know what approaches, markets and clients to attack. This experience has also given him certain skills in the marketing sector. If they have done a good campaign, the company is already being targeted by rivals, both national and international, in the same market.
The establishment of offices and resources for international development is critical and basic in this phase. Likewise, the study of the international market does not stop at any time. Similarly, a large part of the profits is destined to develop strategies for international markets. It must be ensured that each market is focused differently and for the sake of success in that country.
Establishment of subsidiaries for consolidation
Once successful in hand, export becomes a burden that could be solved, with the establishment of subsidiaries. This export, as well as at the beginning, should gradually decrease. That is why the first affiliate to be established is the sale. The business now belongs to the company, and not to a third party. This represents a large investment both in real estate and in human resources.
The second and last step in the internationalization of the company, is the establishment of production subsidiaries. Being the last step, it is the most complicated and the one that should be the most careful. Many companies, having previously secured successes, they see red numbers once they establish international production. It is for this reason and no less important that the company has to control spending at all times. One of the functions of Zoho CRM allows you to control all company spending thus allowing you to see the viability of internationalization as well as the viability of creating offices and production subsidiaries.
This is because the workforce is different and the same standards of the country of origin are not followed. For this reason, this is the most critical and risky step.
What to take into account to internationalize the company?
To internationalize a company, we must take into account the following aspects, before making this important decision. Taking a single step trusting our intuition and “I think it will work” will only lead to total failure. That is why you have to get all the data in your CRM to avoid making irreversible mistakes.
Steps to take into account in the internationalization of a company.
· Security when knowing the limitations. A company must recognize its limitations as well as the strengths of its product.
· Recognizing the market is essential. In this way, we will know what approach to give and what market to attack.
· Be better than the competition. Although it is a factor that is appropriate even in the birth of the company, it must be considered at international levels and at all times.
· Each step carries a great responsibility. Each decision undergoes a series of chain reactions that will affect the company along the way. From the financial level, to the human resource, they must be considered when making decisions.
· The strategic objectives will no longer be the same at the national level. That is why new guidelines and action plans must be drawn up, when focusing on international markets.
We know the importance and the new challenges that companies have today since technological advances are faster every day and companies have to adapt quickly, that is why we provide you with a 30-day free subscription for you to test the potential of Zoho CRM.
