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• Five Reasons to Reach for Inte Five Reasons to Reach for International Markets

  • From: AlexaR
  • Description:

    Many businesses dream of taking their products and services to the global marketplace. The fantasy of going global starts with setting up a website and watching people from all over the world magically find it on the web. In this dream, cultural misunderstandings never happen, shipments always arrive on time, and customers love to buy from you - even though you don't spend any extra resources on international marketing!

    The reality of going global is not quite so smooth or pretty. Leaving your home market means putting aside half of your existing ideas about marketing to your customers and learn how to speak to the needs of your new prospects. You will also have to navigate import/export laws, understand foreign market conditions, setup a distribution model, handle translation and localization, guard against political instability, and watch out for currency fluctuations.

    Are you terrified yet? Don't be! Now-a-days, taking your offerings to the world stage is easier than ever! But why go through all the effort - other than the obvious additional profits to be made?

    Expanding your business into foreign markets can be risky. If your business works with US dollars, fears of a recession may by holding you back. However, this is the perfect time to take a look at foreign markets. Here's why:

    Growing Purchasing Power: Emerging economies have created a new middle class. Those who do business in Latin America, can see evidence of this all around them. The region has the second fastest growing rate of new internet users in the world. As their incomes and online shopping habits grow, so does your opportunity to sell your products and services to them. There is also a surge in buying power for those in already strong economies. Canada and Europe in particular have recently gained more purchasing power.

    Changing Currency Rates: If you are doing business in US Dollars, you are probably worried about currency decline. What can you do to secure the future of your company? Diversify your financial assets. A falling currency reduces the costs of your goods and products overseas. So, American companies are currently in a better position to export. Rising currency rates also offer an opportunity. A strong currency at home makes it cheaper for you to market your offerings overseas in lower currency countries. Your exports will not be as economical as locally produced goods, so it is important to make a judgment call about how your products will be positioned against local competition. If you sell a premium product, this is a great opportunity. However, if your selling position is that of the low cost leader, a higher currency rate will work against you.

    Fluctuating Economies: C ompanies must be aware of local economic changes in today's volatile business world. Many factors can lead to a slowdown. Inflation spurred on my by rapidly increasing fuel prices and falling home is responsible for the coming recession in the US. In China, such as changes in labor and environmental laws, inflation, and a record-breaking cold winter, will slow down one of the fastest growing economies in the world. Diversifying your target market is a good way to protect your business, especially against unforeseen obstacles, like natural disasters.

    Rapidly Expanding Internet Users: The internet is the biggest propeller of international trade today. Businesses can now reach customers throughout the globe with a click of the mouse. According to Internet World Stats, worldwide internet usage has grown 265.6% from 2000 - 2007. In Latin American, the growth has been 598.5 %. In many developing countries, new internet users are exited at the prospect of buying goods and services that were previously out of reach.

    A Rewarding Experience: All over the world, opportunities await for companies to fulfill an unmet need. But reaching out to other cultures can bring rewards even greater than money. International marketing expands your mind by showing you different ways of thinking and looking at business and life. This experience will increase your problem solving skills by forcing you to look at issues from different angles.

    
    So, do you want to expand your business? Is this a good time to go global? Let us know what your thoughts are on the matter.

  • Blog post
  • 2 years ago
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