Globalization is not simply a trend: Diversification is now a necessity for companies to remain competitive in their space. For companies that want to pursue international expansion, there are many opportunities to take advantage of. These include gaining access to new markets, growing teams, and increasing revenue.
Companies of all sizes should be aware of the business benefits of globalization. And these are the top Three reasons companies should be thinking about going global.
According to a recent report, 45% of middle market companies make more than half of their revenue overseas. If your business is doing well domestically, you’re already a step ahead to succeed globally. With a new customer base, you can identify and create unique opportunities in local markets for your business to fill in the gaps.
Thinking globally is becoming less of an option and more of a requirement when it comes to outpacing the competition. In fact, 56% of middle market companies include international expansion into their growth strategies. Taking your business international presents growth opportunities by expanding options for talent, customers, and creating cost-savings for imports and manufacturing.
When you have been in a local market for a while, it can be tough to find new customers. They are used to your product and your competitors, and new sales can be a battle hard-fought. An international expansion opens new doors and gives you access to a whole new set of customers who have never seen your product or service before. About 95 percent of consumers and 84 percent of spending power resides outside the U.S. As the middle class grows around the world, an increasing share of spending power will be outside the U.S. The majority of smaller businesses that do export are reactive or passive exporters rather than strategic exporters.
The reasons above are three great benefits that your business could experience when you think global and expand internationally. Once your team is aligned on your global initiatives, you are ready to start developing a strategic plan.
Contact us today to get a business and management consultant started on your plan!
Hyperio Global Consulting- International collaboration