3 tips for the best internationalization strategies!

 

If you’re thinking of expanding your business through export, now it’s the right time to do so. More and more companies are moving towards this opportunity, but still few have the right skills, methods and tools in order to succeed. Here’s how to create great internationalization strategies and achieve important results. After the shock of the financial crisis years, when Italian companies have been busy saving their activity more than thinking of expanding, the exploration of new markets is now again a target for entrepreneurs, especially in sectors where Italy represents a saturated market. In order to sell better, it is best to look across borders.

 

Internationalization strategies: 3 tips

How to create good internationalization strategies 

PAY ATTENTION TO YOUR MARKET CHOICE

Warning: this advice is perhaps also the most crucial. To make successful deals you need to make advantageous trade agreements: the first requirement for this to happen is to export to the right market. The expansion market should not be chosen emotionally. You shouldn’t choose France just because you know the language, or because you know someone who is already exporting well to that country, or because some newspapers point to that market as extremely beneficial for Made in Italy exports. You shall choose France only if, after evaluating a series of fixed and customized variables, it turns out to be the market that ensures the best performance or your company.

Remember that the choice of objective markets is just one of the 3 key steps to prepare for your best internationalization strategies: generally speaking, never start without first having developed a strategy.

 

AVOID DISCONTINUITY

The commitments of an entrepreneur are many, this is understandable. However, “spot” actions, discontinuous attempts to sell into oversee international markets do not work. It is necessary to invest time, energy, presence and perseverance: engaging in business relationships is challenging and, as you know, business doesn’t only mean meetings between seller and customer, but also need that “quid” of understanding and relationships that go beyond this. If you want to export effectively you you can’t focus only on your product, but you will need to invest resources to marketing and commercial action guided by method and continuity of action.

 

At this point you can choose two ways: either you delegate the management of your company, or you delegate the international approach. Trying to follow both activities means to burn opportunities and deny the best use of your potential. This is often the main reason why attempts of internationalization don’t succeed.

STAY INFORMED ON POLITICS AND INTERNATIONAL ECONOMY

Like in Italy, politics determine the economic conditions of a country and, of course, also the convenience of your export needs. The best-known example is the actual Russian embargo imposed as a result of the diplomatic/trade war due the political situation in Ukraine. The Russian embargo, according to estimates of the CGIA of Mestre, last year has cost Italy as much as 3.6 billion euros: money that never entered the pockets of our companies because of the blockade of commercial products. This is just one example to show how important information about the political and economic situation of the countries to which you would like export can be : export barriers, political chaos, poor cultural affinity are all aspects to consider in order to avoid markets that turn out to be too complex for your product, instead of focussing on those with the best chance for success.   

Don’t waste time, start exploring the markets right away.