As your business expands, you may find yourself in a situation where there seems to be ample opportunity to join a new international market. To do so successfully, preparation is key. In this article, we will look at how international research can help lay the foundations of information to know when to enter new international markets.
Market research undertaken within the country your company is currently based in and selling to can only take you so far. For example, mindsets of new potential international customers can be very different from those at home. Expansion of this size needs a high level of research within this field, if the inherent risks are to be dealt with. If these differences, preferences and priorities can be understood, your entry into this new market can be a lot smoother.
It’s all very well and good saying international research needs to be taken out, but it must be understood what this research does/informs you about. Firstly, it should help validate strategy and plans for international expansion, while showing any potential weaknesses. While an idea of the size of the market in a given country or area should be reached.
It should also show how there might be potential shifts in priorities compared to your domestic setup. For example, different areas of marketing might be much more effective in one country than another. Also, an in-depth analysis should uncover unexpected cultural habits, ones that affect spending especially. Hand in hand with this, it is important for international research not to fall into the trap of stereotyping. Both in terms of respect and capital, stereotyping can be costly.
Finally, there are other factors outside your control that you must also turn your attention to. Firstly currency fluctuation needs to be taken into account. Having supply in one country and demand in another can lead to awkward results if there is a sudden shift in the worth of a currency. Therefore, take the time to research how stable a currency within a country is before investment into that country. On top of this, export prices for countries can differ massively, these extra costs need to be considered if sound financial decisions are going to be made.
If this research is done thoroughly and scrupulously, then it is possible to create a firm foundation of research for your international expansion to be built from.