International business and strategic international business planning are not new concepts. People have traded goods and services around the world for thousands of years. Businesses engaged in import and export gain additional profit that is not possible at the local level. Modern technology has increased international trade significantly. The world is a global village where doing business across the globe is easier than trading across a city was in the past.
Now business setup consultants in Dubai can easily contact an entrepreneur in Australia in minutes thanks to modern communication technologies. Online money transfer companies like Paypal and Payoneer have made it easy to transfer money globally, while delivery of goods internationally can be done in days with the help of reliable international goods transfer companies like FedEx, DHL, TNT etc.
But quick and easy international movement of funds and goods means the number of companies trading internationally has increased. Any new company entering this arena will face many already established global competitors. The success of any company in global markets hinges on meaningful international strategic planning.
Strategic planning allows an organization to achieve its goals by setting priorities, utilizing its resources effectively, and adjusting its direction according to changes in the business environment. Different strategies are required for local versus international businesses. Following are 6 useful tips for your strategic international business planning to succeed in extremely competitive international business markets:
1. Find the right market.
Find and choose the international market best suited to your type of business. You will have to analyze and evaluate your product or service demand in different international markets. Choosing the right destination according to your business type is the first step of strategic international business planning.
2. Understand your competitors.
Know your competitors in your chosen international market. If the competition is really tough, it is better to choose a location with a smaller competitor presence, even if the demand for your product is lower in this location. You can more easily gain higher market share with less competition.
3. Identify growth opportunities.
Identifying growth opportunities is an important part of strategic planning in international business. Growth strategies are meant to grow businesses by either finding new markets in previously unexplored parts of the world or evaluating new methods to increase market share and profits in existing international markets. Expect to define your growth strategy or strategies during strategic planning.
4. Develop a local plan.
International business differs from local business in that you may need to deal with markets in various countries in different parts of the world. Different strategies may be required for each location due to variation in political, legal, or economic climates of the different areas. Be prepared to adopt different plans for different markets depending on specific market requirements.
5. Find strategic partners.
If you are considering international business expansion, you will require different strategies for different markets. In this case, it is difficult for a single entity to smoothly execute expansion. Consider finding a strategic partner, one aware of market trends in the regions where you are expanding, to assist you with your expansion.
6. Stay flexible to changing needs.
Economic or political circumstances in any market may not remain unchanged for long. You must constantly analyze your market’s situation so that strategy and planning respond to changes in market circumstances to maintain continuous growth of your international business.
This list of 6 tips for running successful strategic international business planning is not all-inclusive. But these 6 tips are key factors to consider if you are planning for strategic business growth in worldwide markets.
Further Reading: THE PERIGON METHOD
Brenda Cagara is a part of the business consultant team RIZ & MONA in Dubai. Her work is to assist in forming & setting up businesses, including services such as visa processing, trade license, trademark, opening bank accounts, product registration and local sponsorship. Along with this, she vigilantly manages to pursue her writing career. In the past five years, she has been writing in a variety of niches; key among them are business, taxation, and finance.