Companies that want to enter the international market must overcome various barriers. They need to understand the country’s customs, culture, rules and needs and then tailor their business concept for that market. Here are some steps that these companies can take to make their journey to the new territory comfortable.
Know the customs and business etiquettes
Every country has different custom and business etiquette. You need to be familiar with these. You should make sure that you know the country’s history, the way to greet people, the proper way to communicate, etc.
Get information on previous import/export conditions and currency value fluctuation
You should look at the historical data regarding the currency value fluctuation and other import/export situations. This will give you an idea of what to expect. You don’t want to ruin a deal because of sudden currency fluctuation or high promotional cost. It is recommended you lock in the currency rates and delivery dates in advance so that there is minimum risk involved.
Know the business laws of the country
It is better to have a local representative who can help you in finding out about the obstacles you might face. You should learn about the business laws so that you don’t face any problem in the foreign country when setting up or running your business.
Find out about the competition
Learn about the competitors in the international market. You should know how these companies approached the new market and what is unique about their products and services.
When entering an international market, you should think globally and have a solid business strategy. You can learn a lot from studying the cases of companies who have entered the market the same way. This will help you to be prepared for the unforeseen obstacles that you may encounter.
Many businesses understand the importance of having a strategic plan for their business. However, not all strategic plans become successful. Here are the top reasons why strategic plans fail.
Have a plan without thinking of executing it
You shouldn’t have a plan only for the sake of having a plan. You should understand your business needs and the business environment before you write down your strategic plan. Your plan must be executable. After making the plan, make sure that you achieve the goals written on your plan. You should set achievable priorities and understand the need to have measurable results.
Having the right people involved
The business owners or CEOs must be totally committed to the strategic plan that has been made. They must understand the plan and have the right knowledge to execute it. You should get the right people involved in executing the strategic plan.
Not putting the plan on the shelf
It is no use if you write a plan and just store it on your shelf. It’s like not writing a plan at all. You should review the plan continually and make updates if necessary. You should utilize it as an effective management tool.
Unwillingness to change
The strategic plan you create must be adaptable to the changing market conditions. You should be willing to make the necessary changes.
Ignoring the facts and assumptions
You should not ignore the marketplace realities. Don’t ignore them even if they don’t have any immediate effect on your business. You must plan in advance.
You should avoid these conditions at all cost to make your strategic plan work. If a strategic plan can be executed properly, then the chances of your business being successful will increase.
It takes time and resources to develop a strategy. Still, strategic planning is necessary for a business to succeed. Here are five reasons why.
1) To set direction and priorities
A strategy helps you to set direction and priorities for the company. It tells the people of the organization in which order they should do their tasks. Without proper strategy, you may not head in the right direction.
2) To get everyone involved
By having a strategic plan, you can get the sales, marketing, operations, administration and the other departments in your company to work together to achieve company goals.
3) Helps in decision-making
If you have a strategy, you will know your priorities. So, it will be easier for you to make decisions. You can also set the directions of your employees to achieve your goals.
4) To create alignment
The activities of your business must be aligned with your priorities. It will help you to utilize your resources better so that nothing is wasted.
5) To communicate the goals and priorities to others
Many leaders have a strategic plan in their head but have never put it down in writing. So, others in the organization have no idea about it. Having a written strategic plan allows it to be communicated to everyone working in the company. So, everyone knows where the company is heading and what their responsibility is.
A strategic plan saves companies from unwanted distractions. It gives the company the right path to move forward and be successful.