All posts tagged: Overseas Expansion

Expanding overseas: should go it alone or use an agent or distributor.

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Today we will examine the pros and cons of use of an agent or a distributor when expanding overseas compared to using your own sales force. I will focus on working with a partner in our target market but consider entering the market with a company from your home country.  If you know of a company with complementary products, consider forming a Joint Venture to enter the country together. Much of your research will apply to your potential JV partner. You may even have identified that you will have a higher degree of success if you bring a complete package to the marketplace. But you need to assess their financial resources, the robustness of their business, and the capability of their people before agreeing to a Joint Venture. More importantly, does their enthusiasm for the project match yours? Remember, there will be setbacks, and troubles lie ahead unless their commitment is as strong as yours. For marketing your products or services, there are three common approaches: What is the difference between a distributor and an …

Overseas expansion How to find the best target country

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This is the second post on the topic of finding the ideal target country for your business expansion Another criterion in your market assessment is what is the competition like? There is likely to be local competition and probably international competition that have entered the market before you. Find out as much as you can about their products or services, pricing, quality, distribution methods. Is there national and regional competition? How are they perceived? What is their after sales service? A SWOT, Strengths, Weaknesses, Opportunity Threats analysis could be helpful in assessing the potential competition. You should consider the Macro Economic climate. We have talked about GDP growth but extend this to look at per capita income, demographics. Does the country have a young growing demographic? In many African countries more than 40% of the population is under 15 years of age. Niger’s under 15-year-olds represent half of the country’s population. The country with the lowest under 15 years population? Singapore at 12.3%. Look at the trend of the working population size. China’s working population …

Are you thinking of expanding overseas? Week 2 Is it right for you?

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Is my company ready to expand overseas? Is it right for me? Taking your company overseas Taking your company’s products or services overseas is an exciting prospect, the potential for a larger customer base, the opportunity to enter faster growing markets, maybe less mature markets where you can ride the tide of expansion. There is also a certain cache in being an international business but with opportunity comes challenge. The international journey can be treacherous with unexpected setbacks that need to be overcome. Even before you embark on the adventure you must assess whether your company is ready to operate overseas. And are you personally suited to doing business abroad? The first question is whether you have the financial reserves required to support your overseas business during its startup phase. This will cost more than you expect and take longer than you plan. This is based on my own personal experience in entering foreign markets. At this stage in the process, you do not know what you do not know. There will always be surprises. …