Hello, friends Summarized! Have you ever heard of the terms global market and international expansion? Maybe you are familiar with both of these terms, especially if you are in the business world. However, do you know what the meaning and benefits of global markets and international expansion are? If not, let’s see this article to the end!
Global Markets and International Expansion, Opportunities and Challenges
What are Global Markets and International Expansion?
The global market is a place for multinational companies to transact (buy and sell) goods or products. The global market allows companies to sell their products to various countries without being limited by geographical, political or cultural boundaries. Global markets also provide access to more diverse and quality resources, technology and workforce.
International expansion is a form of a company’s efforts to expand its market and production boundaries . This is influenced by an increase in consumer demand for products and services owned by the company. International expansion can be done in various ways, such as opening branches in other countries, cooperating with local companies, or acquiring foreign companies.
Why are Global Markets and International Expansion Important?
Global markets and international expansion have many benefits for companies, including:
Increase market share . By entering the global market, companies can reach more and more diverse consumers. This can increase the company’s sales, revenue and profits.
Increase competitiveness . By entering the global market, companies can take advantage of technology, innovation and creativity that exist in other countries. This can improve product quality, operational efficiency and brand differentiation of companies.
Reduce risk . By entering the global market, companies can reduce dependence on the domestic market which may experience fluctuations or crises. This can increase the stability and resilience of the company.
How to Do Global Market and International Expansion?
Global markets and international expansion are not easy to do. There needs to be careful preparation and the right strategy to face the challenges that exist. Following are some steps that can be taken by companies wishing to do global markets and international expansion:
Analyze business impact . It is necessary to carry out an in-depth analysis of market potential, competition, laws, culture and other factors affecting business in the target country. This can help companies anticipate existing risks and opportunities.
Designing business strategy . It is necessary to formulate a short, medium and long term business strategy that includes goals, objectives and indicators of business success. This can help the company determine the direction and focus of its business.
Form a beachhead team . It is necessary to form a special team whose task is to study the local market, establish relationships with business partners, and supervise business operations in the target country. This can help the company build a strong business foundation in the target country.
Perform product adaptation . Product adjustments need to be made according to the needs, tastes and preferences of consumers in the target country. This can help companies increase customer satisfaction and loyalty.
Doing product promotion . It is necessary to promote products according to the characteristics of the market, culture and media in the target country. This can help companies increase consumer awareness and interest in their products.
Case Examples of Global Markets and International Expansion
One example of a company that has succeeded in conducting global markets and international expansion is Gojek . Gojek is a technology company from Indonesia that provides various services such as transportation, payment, delivery, and others. Gojek was founded in 2010 as an online motorcycle taxi ordering platform. Since then, Gojek has continued to develop and add to its services.
In 2018, Gojek began its international expansion by entering Southeast Asian markets, such as Vietnam, Singapore, Thailand and the Philippines. Gojek adapts its products by changing its name according to the destination country, such as Go-Viet in Vietnam, Get in Thailand, and Go-Pay in the Philippines. Gojek also collaborates with local companies, such as DBS Bank in Singapore, Grab in Thailand, and Coins.ph in the Philippines.
Gojek has succeeded in attracting millions of users and partners in these countries. Gojek has also managed to gain support from global investors, such as Google, Tencent, Facebook and PayPal. Gojek is now one of the largest unicorns (companies with a valuation of more than 1 billion US dollars) in Southeast Asia.
Conclusion
Global markets and international expansion are two things that are interrelated in the business world. The global market provides opportunities for companies to expand their market and increase their competitiveness. International expansion is one way to take advantage of these global market opportunities. However, the global market and international expansion also have challenges that must be faced by companies. Therefore, there is a need for proper preparation and the right strategy to conduct global markets and international expansion.
Thus the article about the global market and international expansion. Hopefully useful and add to your insight. If you have questions or feedback regarding this article, please write in the comments column below. Thank You!
