{"id":17978,"date":"2022-08-12T13:05:23","date_gmt":"2022-08-12T11:05:23","guid":{"rendered":"https:\/\/phrase.com\/blog\/?p=17978"},"modified":"2023-06-13T16:26:11","modified_gmt":"2023-06-13T14:26:11","slug":"global-expansion","status":"publish","type":"post","link":"https:\/\/phrase.com\/blog\/posts\/global-expansion\/","title":{"rendered":"The Manager\u2019s Guide to Global Expansion"},"content":{"rendered":"\n<div id=\"acf\/text-block_6ebe81c9b8b2f41f753d0222b58ed4d7\" class=\"pxblock pxblock--text spacing--default bg--white\">\n\n\t\n\t<div class=\"container\">\n\t\t<div class=\"wysiwyg animate-in\">\n\t\t\t<p>Growing organizations often start thinking about going global\u2014expanding internationally beyond their original market to new customers overseas or in other countries.<\/p>\n<p>It\u2019s an exciting time for your business, but global expansion is also a complex process and decision with many important considerations.<\/p>\n<p>To help you get started, we created this guide on global expansion strategies, risk management, and planning best practices.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_69_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Overview<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/phrase.com\/blog\/posts\/global-expansion\/#what-is-global-expansion\" title=\"What is global expansion?\">What is global expansion?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/phrase.com\/blog\/posts\/global-expansion\/#what-is-the-purpose-of-global-expansion\" title=\"What is the purpose of global expansion?\">What is the purpose of global expansion?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/phrase.com\/blog\/posts\/global-expansion\/#types-of-global-expansion-strategies\" title=\"Types of global expansion strategies\">Types of global expansion strategies<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/phrase.com\/blog\/posts\/global-expansion\/#international-strategy\" title=\"International strategy\">International strategy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/phrase.com\/blog\/posts\/global-expansion\/#multi-domestic-strategy\" title=\"Multi-domestic strategy\">Multi-domestic strategy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/phrase.com\/blog\/posts\/global-expansion\/#global-strategy\" title=\"Global strategy\">Global strategy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/phrase.com\/blog\/posts\/global-expansion\/#transnational-strategy\" title=\"Transnational strategy\">Transnational strategy<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/phrase.com\/blog\/posts\/global-expansion\/#the-benefits-of-global-business-expansion\" title=\"The benefits of global business expansion\">The benefits of global business expansion<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/phrase.com\/blog\/posts\/global-expansion\/#global-expansion-elevates-business-growth\" title=\"Global expansion elevates business growth\">Global expansion elevates business growth<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/phrase.com\/blog\/posts\/global-expansion\/#global-expansion-creates-new-revenue-streams\" title=\"Global expansion creates new revenue streams\">Global expansion creates new revenue streams<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/phrase.com\/blog\/posts\/global-expansion\/#global-expansion-boosts-your-global-brand-recognition\" title=\"Global expansion boosts your global brand recognition\">Global expansion boosts your global brand recognition<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/phrase.com\/blog\/posts\/global-expansion\/#global-expansion-gives-you-access-to-an-international-talent-pool\" title=\"Global expansion gives you access to an international talent pool\">Global expansion gives you access to an international talent pool<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/phrase.com\/blog\/posts\/global-expansion\/#global-expansion-risks\" title=\"Global expansion risks\">Global expansion risks<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/phrase.com\/blog\/posts\/global-expansion\/#ignorance-or-lack-of-understanding-of-cultural-differences\" title=\"Ignorance or lack of understanding of cultural differences\">Ignorance or lack of understanding of cultural differences<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/phrase.com\/blog\/posts\/global-expansion\/#incomplete-insight-into-political-legal-and-compliance-environments\" title=\"Incomplete insight into political, legal, and compliance environments\">Incomplete insight into political, legal, and compliance environments<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/phrase.com\/blog\/posts\/global-expansion\/#potentially-higher-initial-investment-and-waiting-for-long-term-gains\" title=\"Potentially higher initial investment and waiting for long-term gains\">Potentially higher initial investment and waiting for long-term gains<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/phrase.com\/blog\/posts\/global-expansion\/#insufficient-attention-to-marketing-and-advertising-requirements\" title=\"Insufficient attention to marketing and advertising requirements\">Insufficient attention to marketing and advertising requirements<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/phrase.com\/blog\/posts\/global-expansion\/#global-expansion-tips\" title=\"Global expansion tips\">Global expansion tips<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/phrase.com\/blog\/posts\/global-expansion\/#market-research\" title=\"Market research\">Market research<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/phrase.com\/blog\/posts\/global-expansion\/#learn-from-your-competition\" title=\"Learn from your competition\">Learn from your competition<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/phrase.com\/blog\/posts\/global-expansion\/#rely-on-local-experts-across-fields\" title=\"Rely on local experts across fields\">Rely on local experts across fields<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/phrase.com\/blog\/posts\/global-expansion\/#adapt-your-product-for-international-markets\" title=\"Adapt your product for international markets\">Adapt your product for international markets<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/phrase.com\/blog\/posts\/global-expansion\/#make-a-splash-in-international-business\" title=\"Make a splash in international business\">Make a splash in international business<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"what-is-global-expansion\"><\/span>What is global expansion?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Global expansion is a company\u2019s growth into operations outside domestic markets\u2014into one or more other countries or regions. There are several different ways to expand internationally and different reasons for international growth.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"what-is-the-purpose-of-global-expansion\"><\/span>What is the purpose of global expansion?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Global expansion opens new opportunities for organizations, improving profitability, creating new revenue, and enhancing the company\u2019s reputation. There are many benefits to expanding your business globally and international organizations can test the limits of what is possible for their brands and their target customers.<\/p>\n<p>Just as founders build businesses for many different reasons, business leaders expand globally with many unique motives and goals in mind.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"types-of-global-expansion-strategies\"><\/span>Types of global expansion strategies<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Global expansion strategies enable organizations to work internationally, reaching markets outside of their own domestic market and gaining access to business opportunities in other parts of the world.<\/p>\n<p>Multinational companies operate in multiple countries\u2014in contrast with domestic companies, which operate in a single country. This strategy is often pursued to gain access to more consumer markets or become a supplier to new customers in other business-to-business (B2B) markets.<\/p>\n<p>Generally, companies expanding globally follow one of these 4 key global expansion strategies:<\/p>\n<ul>\n<li><a href=\"https:\/\/phrase.com\/blog\/posts\/international-strategy\/\">International strategy<\/a><\/li>\n<li><a href=\"https:\/\/phrase.com\/blog\/posts\/multi-domestic-strategy\/\">Multi-domestic strategy<\/a><\/li>\n<li><a href=\"https:\/\/phrase.com\/blog\/posts\/global-strategy\/\">Global strategy<\/a><\/li>\n<li><a href=\"https:\/\/phrase.com\/blog\/posts\/transnational-strategy\/\">Transnational strategy<\/a><\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-34854\" src=\"https:\/\/phrase.com\/wp-content\/uploads\/2022\/10\/global-expansion-strategy-types.jpeg\" alt=\"Graph: global expansion strategy types | Phrase\" width=\"2114\" height=\"2114\" srcset=\"https:\/\/phrase.com\/wp-content\/uploads\/2022\/10\/global-expansion-strategy-types.jpeg 2114w, https:\/\/phrase.com\/wp-content\/uploads\/2022\/10\/global-expansion-strategy-types-300x300.jpeg 300w, https:\/\/phrase.com\/wp-content\/uploads\/2022\/10\/global-expansion-strategy-types-1024x1024.jpeg 1024w, https:\/\/phrase.com\/wp-content\/uploads\/2022\/10\/global-expansion-strategy-types-150x150.jpeg 150w, https:\/\/phrase.com\/wp-content\/uploads\/2022\/10\/global-expansion-strategy-types-768x768.jpeg 768w, https:\/\/phrase.com\/wp-content\/uploads\/2022\/10\/global-expansion-strategy-types-1536x1536.jpeg 1536w, https:\/\/phrase.com\/wp-content\/uploads\/2022\/10\/global-expansion-strategy-types-2048x2048.jpeg 2048w\" sizes=\"(max-width: 2114px) 100vw, 2114px\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"international-strategy\"><\/span>International strategy<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Applying an international strategy involves entering a new market without significantly changing product features or pricing strategy. Products or services are sold at similar price points and with the same branding, functionality, and design.<\/p>\n<p>To casual observers, your product would probably be identical regardless of which country or region they buy it in. It wouldn\u2019t be cheaper than it was before, even if local competitors offer a similar product at a different price. An International strategy doesn\u2019t involve lowering the price to compete with local alternatives.<\/p>\n<p>Essentially, it\u2019s as if you \u201cdrag and drop\u201d your product directly into the new market without reframing how it\u2019s sold based on cultural differences or expectations. Buyers may see your product as more appealing if they prefer to purchase a product they perceive as foreign\u2014they may also buy your product because they like what they see about your company and overall brand.<\/p>\n<p>Rolex watches are a great example of international strategy at work. A Rolex timepiece is made in Switzerland and appeals to buyers based on the brand\u2019s reputation for quality. Wherever you are in the world, if you look for a Rolex watch, you\u2019ll probably find similar pricing and the same designs and options available. You can generally expect Rolex watches that are designed for the Swiss market to look the same and have the same quality that Rolex watches sold in the United States (US), Italy, France, the UK, or anywhere else have.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"multi-domestic-strategy\"><\/span>Multi-domestic strategy<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>By using a multi-domestic strategy, other companies take a different approach that adapts to local cultures and markets. Each country\u2019s unique local tastes and preferences are accounted for with products or services that are customized to be more competitive within that particular market. Similar to an international strategy, a multi-domestic strategy doesn\u2019t compete primarily on pricing.<\/p>\n<p>Your brand, within a different domestic market, may very well offer a significantly different version of the product you currently sell today. Modifying what you offer to fit different customs could potentially make your products more profitable if customers see the changes as a sign that your company is now a better fit for their needs and preferences.<\/p>\n<p>For some companies, this approach of unique modifications for each market could be expensive, but a multi-domestic strategy doesn\u2019t focus on reducing prices to gain market share. Your products will still have the same pricing in a different market.<\/p>\n<p>Lay\u2019s, a potato chip brand based in the US and a wholly owned subsidiary of PepsiCo, has other brand names operating in other countries. UK customers buy Walkers\u2019 crisps in flavors such as paprika that would be uncommon or unavailable in Lay\u2019s domestic market.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"global-strategy\"><\/span>Global strategy<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>In direct contrast to multi-domestic, a global strategy involves building cost-effective operations for international markets, which minimize local and regional variation. Products or services are largely the same in every market to reduce costs as much as possible and become an industry leader. Companies following this approach want to undercut competitor pricing in every market they operate in.<\/p>\n<p>If you follow a global strategy, your company will probably differentiate from competitors through pricing leadership. You will seek to win market share in the countries you operate in by offering the best prices, but your products won\u2019t adapt uniquely to each culture\u2014even if there are local preferences you could consider.<\/p>\n<p>For products where the price is important but customization isn\u2019t, a global strategy is a particularly good fit. Components supplied for manufacturing consumer products are one example.<\/p>\n<p>Perhaps one of the best-known companies using a global strategy is Coca-Cola. This popular brand\u2019s soft drinks are fairly uniform around the world\u2014a \u201cCoke\u201d may be packaged, distributed, or promoted differently in different markets, but it\u2019ll probably taste the same whether you buy it in the US or Germany.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"transnational-strategy\"><\/span>Transnational strategy<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>For companies that want to build both customization and reduced costs into their global expansion strategy, a transnational strategy may be the best choice. Transnational strategy looks for ways to optimize product fit within each market while also managing costs and process efficiencies. Most of the products are very similar, making it possible to use the same suppliers and avoid having to create separate supply chains, reducing the costs associated with selling to multiple markets. Some minor customization is easily added on without creating too much change or extra costs.<\/p>\n<p>Ice cream company Baskin Robbins sells different flavors of ice cream in different countries, often taking inspiration from local cuisines. In Asia, you might find matcha and chocolate ice cream\u2014but not at all Baskin Robbins stores around the world.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"the-benefits-of-global-business-expansion\"><\/span>The benefits of global business expansion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Global business expansion offers many tangible benefits for organizations. Interest in global growth is strong because companies know that international expansion is a great way to grow a business, create new revenue streams, build brand recognition, and hire global talent.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"global-expansion-elevates-business-growth\"><\/span>Global expansion elevates business growth<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Expanding a business internationally provides companies with access to additional markets. Entering new markets helps businesses grow beyond the customers and prospective buyers in their original country. A worldwide market means more potential buyers, markets with different needs and preferences, and markets operating within different regulatory requirements.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"global-expansion-creates-new-revenue-streams\"><\/span>Global expansion creates new revenue streams<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Entering new markets internationally gives organizations additional income, helping them become more resistant to market shocks and changes in domestic market conditions. Growing revenue by expanding internationally could be as straightforward as making products available online within additional countries, or as complex as building new factories and fulfillment centers overseas.<\/p>\n<p>Regardless of how your organization enters a global market, the potential for revenue growth is a realistic possibility. You can use this revenue to strengthen your profitability.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"global-expansion-boosts-your-global-brand-recognition\"><\/span>Global expansion boosts your global brand recognition<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>By reaching other markets, your organization builds brand awareness and brand recognition with potential customers. Global expansion makes it possible for your company to become better known and establish a recognizable reputation. This creates new possibilities for <a href=\"https:\/\/phrase.com\/blog\/posts\/product-promotion\/\">product promotion<\/a> and strengthens your brand.<\/p>\n<p>Once you\u2019ve gained recognition outside your home market, reaching additional markets often becomes easier\u2014you already know how to communicate relevance to a new market with new customers. You may have success you can use to launch your reputation into nearby countries, the rest of the continent, or a new region. After taking your business into Canada, for example, you may more easily expand into the United States.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"global-expansion-gives-you-access-to-an-international-talent-pool\"><\/span>Global expansion gives you access to an international talent pool<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>As your company grows across borders, hiring great talent from other countries generally becomes easier to accomplish. Better name recognition for your brand and familiarity with other markets can be very helpful when you\u2019re recruiting\u2014and access to an international talent pool provides your company with the opportunity to hire the best people.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"global-expansion-risks\"><\/span>Global expansion risks<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>With many business decisions, there is risk involved. Global expansion can be risky as well, and it\u2019s worthwhile to prepare risk reduction and mitigation strategies before you get started.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"ignorance-or-lack-of-understanding-of-cultural-differences\"><\/span>Ignorance or lack of understanding of cultural differences<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Cultural differences can be very significant and their impact on business shouldn\u2019t be ignored or underestimated. Social, linguistic, religious, and other misunderstandings could harm otherwise strong business plans. Decisions that show ignorance of culture can backfire and pose a serious threat to any company expanding overseas. Well-prepared business leaders carefully consider cultural differences throughout the global expansion process.<\/p>\n<p>For example, if product packaging includes a color that\u2019s offensive or inappropriate artwork, customers may reject the brand. Clothing styles that are fashionable in one country may be considered immodest or unusual in another cultural context.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"incomplete-insight-into-political-legal-and-compliance-environments\"><\/span>Incomplete insight into political, legal, and compliance environments<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The wrong move on a compliance issue can be fairly costly for your business. Imagine being unaware of a tax you\u2019re required to pay, regulations in place before you can advertise your product in another country, or other compliance conditions with significant risks.<\/p>\n<p>That\u2019s why it\u2019s advisable to research and enlist a professional\u2019s services\u2014if necessary\u2014before expanding your business internationally. At the very least, this could save you money and future hassle, if not prevent serious trouble altogether.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"potentially-higher-initial-investment-and-waiting-for-long-term-gains\"><\/span>Potentially higher initial investment and waiting for long-term gains<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Before you expand globally, it makes sense to count the costs and have a realistic assessment of when you\u2019ll break even or generate a profit on the investment. International businesses may incur higher costs and unexpected expenses that eat away at profit margins. That\u2019s why upfront research, profit projections, and estimates are always helpful.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"insufficient-attention-to-marketing-and-advertising-requirements\"><\/span>Insufficient attention to marketing and advertising requirements<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Marketing and advertising can work quite differently from one culture to another. Even if you\u2019re using the same platforms or channels for reaching potential customers, you may have to follow another process to get started in another country, and this could be much different from what you anticipated. Closely related, what is important to your market today may not fit with what other markets value.<\/p>\n<p>For example, different countries often use different social media channels: While Facebook tops the US market, VK (Vkontakte) is the preferred social media platform in Russia. Similarly, planning around the popularity of Google Search isn\u2019t as helpful for businesses planning to launch a website in China, where Baidu is a more popular search engine. This makes it obvious that you should adapt your product to the habits of your target audience if you want to be seen.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"global-expansion-tips\"><\/span>Global expansion tips<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Following these <a href=\"https:\/\/phrase.com\/blog\/posts\/key-steps-to-entering-global-markets\/\">steps to entering international markets<\/a> can help your organization prepare for an effective global expansion.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"market-research\"><\/span>Market research<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>For just about everything about international business, <a href=\"https:\/\/phrase.com\/blog\/posts\/market-research\/\">market research<\/a> is your friend\u2014use your research to help you plan your resources and mitigate risks.<br \/>\nDuring your research, you may want to explore these areas further:<\/p>\n<ul>\n<li><strong>Market audience:<\/strong> Who is your target customer? Consider creating a persona by choosing a real-life or fictional person (or company) who represents your ideal customer. Who are they, and what do they want? This will help you <a href=\"https:\/\/phrase.com\/blog\/posts\/guide-to-understanding-what-customers-really-want\/\">understand customer needs<\/a> in each of your target markets.<\/li>\n<li><strong>Market demand:<\/strong> Is there a demand for your product or service? How big is that demand? The more you can quantify your estimate the better.<\/li>\n<li><strong>Trends:<\/strong> How is your type of product or service perceived by customers? What are customers looking for and how do they usually choose the right brand or the right product? How much change or stability does the market have?<\/li>\n<li><strong>Market entry strategy:<\/strong> How will you enter the market and what factors influence your <a href=\"https:\/\/phrase.com\/blog\/posts\/entering-foreign-markets\/\">market entry strategy<\/a>? You may want to consider logistical details, business goals, lists of action items you\u2019ll need to complete, and what timeline you should expect to follow.<\/li>\n<\/ul>\n<h4>Use the PESTEL framework<\/h4>\n<p>Another helpful research tool is PESTEL, which represents political, economic, social, technological, environmental, and legal influences. Each aspect of PESTEL can have an impact on your business, so it may be helpful to research and plan for PESTEL factors in each target country you plan to operate in.<\/p>\n<ul>\n<li><strong>Political:<\/strong> The country\u2019s government, leadership, political stability, and political climate<\/li>\n<li><strong>Economic:<\/strong> The general economic outlook in the target country as well as your industry\u2019s economic health<\/li>\n<li><strong>Social: <\/strong>Cultural values, social beliefs, religious and philosophical points of view, etc.\u2014this can include cultural history and memory<\/li>\n<li><strong>Technological:<\/strong> Benefits and limitations of technology available in a particular market as well as regulations surrounding its use\u2014this includes not only the technology your company uses but also technology available to your customers<\/li>\n<li><strong>Environmental: <\/strong>Local environmental issues, regulation, and history<\/li>\n<li><strong>Legal:<\/strong> The regulatory standards and processes your company will need to comply with<\/li>\n<\/ul>\n<p>To conduct a PESTEL analysis of a target market, it\u2019s important to research and document as many political, economic, social, technological, environmental, and legal conditions as possible:<\/p>\n<ul>\n<li>How are the PESTEL factors different from your original market?<\/li>\n<li>Using PESTEL, what risks are present? How do these impact your brand?<\/li>\n<li>Are there advantages or benefits that your brand has over competitors in these areas?<\/li>\n<li>What should you be watching for\u2014is there developing news or are there current events that could change your market entry strategy?<\/li>\n<\/ul>\n<p>When in doubt, it\u2019s recommendable to over-research rather than make a guess or act without good information. Research helps you protect your business from risk and reach your goals more effectively.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"learn-from-your-competition\"><\/span>Learn from your competition<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>If you have competitors who are already reaching another market, taking a close look at their work could help you define your own <a href=\"https:\/\/phrase.com\/blog\/posts\/market-positioning\/\">market positioning<\/a> in a manner that stands out from them. Here are a few things to consider:<\/p>\n<ul>\n<li>Who are your competitors in that target market?<\/li>\n<li>Are your competitors local or foreign companies?<\/li>\n<li>What do you think your competitors are doing well?<\/li>\n<li>Similarly, what are your competitors doing poorly in your view?<\/li>\n<li>What\u2019s your business better at?<\/li>\n<li>Is your investment likely to generate a return, even with these competitors in the same industry?<\/li>\n<\/ul>\n<p>Whenever possible, learn from your competitors\u2019 discoveries and mistakes\u2014it\u2019s less expensive to learn from someone else\u2019s decisions. Competitors are a great source of information about your market.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"rely-on-local-experts-across-fields\"><\/span>Rely on local experts across fields<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Local expertise is valuable for organizations undertaking global expansion. If you can, hire local personnel or find experts who are familiar with your target market. Aside from their subject matter expertise, these experts can also help you understand important cultural differences and localization considerations you may have otherwise overlooked.<\/p>\n<p>Ask yourself before you start working with a local expert:<\/p>\n<ul>\n<li>What fields should I hire local experts in?<\/li>\n<li>What is their experience with this target market or culture?<\/li>\n<li>Could this expert help my business build our global reputation and local trust?<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"adapt-your-product-for-international-markets\"><\/span>Adapt your product for international markets<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>To get a foothold in the constantly evolving and highly competitive global marketplace, taking into account differences between markets is key. Potential customers in each target market need to be able to understand your product or service from the start and relate to it on an emotional level before making a buying decision.<\/p>\n<p>For example, if your online store doesn\u2019t respect local date and time formats or local online shopping habits, it can be a signal that the product is of lesser quality or even illegitimate. This makes it clear that translation isn\u2019t enough\u2014a <a href=\"https:\/\/phrase.com\/blog\/posts\/global-product-launch\/\">global product launch<\/a> isn\u2019t only about transferring a website or marketing assets from one language to another.<\/p>\n<h4>Localization is integral to global expansion strategies<\/h4>\n<p>Making your product accessible to people across markets means adapting it to cultural differences, linguistic particularities, local expectations, purchasing power and habits, and legal requirements\u2014just to name a few aspects of a process as complex as localization. Integral to global expansion, localization requires a clear strategy and robust technology.<\/p>\n<p>A clear <a href=\"https:\/\/phrase.com\/blog\/posts\/how-important-is-localization-for-your-business\/\">localization strategy<\/a> will ensure that localization results in a product that potential users can\u2019t identify as an adapted version of an existing original. This means that people in your target market will compare your localized product with \u201cnative\u201d offers and find no difference in understanding, buying, and using your product or service.<\/p>\n<p>The key to effective localization is in allocating the most resources to everything that can\u2019t get automated\u2014think global strategy, product design, or campaign copywriting\u2014while automating as many repetitive and time-consuming tasks associated with your localization workflow as possible. In that respect, localization technology can be your greatest ally on the way to global domination.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"make-a-splash-in-international-business\"><\/span>Make a splash in international business<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>With significant benefits to global expansion, it\u2019s little wonder that so many companies choose international growth strategies. Expanding globally is a bold step that can provide additional revenue for your company and help you grow your reputation. Using one of the 4 global expansion strategies provides your business with a solid blueprint for a successful transition.<\/p>\n<p>Developing the right market entry strategy for your business can help you mitigate risk, stay compliant, and generate more interest in your product or service. By localizing your product, you prepare to reach customers more effectively and position your company for better results.<\/p>\n\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<div id=\"acf\/blog-cta-block_2e6a530873a06dec4188864b65e235c7\" class=\"pxblock pxblock--blog-cta alignfull bg--grey image--orientation-landscape\">\n\t<div class=\"block-container\">\n\t\t\t\t\t<div class=\"image image--align-middle\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"1890\" height=\"1730\" src=\"https:\/\/phrase.com\/wp-content\/uploads\/2023\/03\/phrase-localization-suite.png\" class=\"attachment-original size-original\" alt=\"Phrase localization platform key visual | Phrase\" srcset=\"https:\/\/phrase.com\/wp-content\/uploads\/2023\/03\/phrase-localization-suite.png 1890w, https:\/\/phrase.com\/wp-content\/uploads\/2023\/03\/phrase-localization-suite-300x275.png 300w, https:\/\/phrase.com\/wp-content\/uploads\/2023\/03\/phrase-localization-suite-1024x937.png 1024w, https:\/\/phrase.com\/wp-content\/uploads\/2023\/03\/phrase-localization-suite-768x703.png 768w, https:\/\/phrase.com\/wp-content\/uploads\/2023\/03\/phrase-localization-suite-1536x1406.png 1536w\" sizes=\"(max-width: 1890px) 100vw, 1890px\" \/>\t\t\t<\/div>\n\t\t\t\t<div class=\"content\">\n\t\t\t<p class=\"h6\">Unlock global business with the Phrase Localization Platform<\/p>\n<p class=\"small\">Expand into new markets with all the tools you need in one technology suite for high-quality, fast, and scalable localization.<\/p>\n<p><a class=\"btn btn--outline\" href=\"https:\/\/phrase.com\/platform\/\">Explore Phrase Platform<\/a><\/p>\n\t\t<\/div>\n\t<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Global expansion offers many business benefits but can be risky without careful planning. Prepare for global markets with the right strategy.<\/p>\n","protected":false},"author":60,"featured_media":2597,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_stopmodifiedupdate":true,"_modified_date":"","_searchwp_excluded":"","footnotes":""},"categories":[37],"class_list":["post-17978","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-global-business"],"acf":[],"_links":{"self":[{"href":"https:\/\/phrase.com\/wp-json\/wp\/v2\/posts\/17978"}],"collection":[{"href":"https:\/\/phrase.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/phrase.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/phrase.com\/wp-json\/wp\/v2\/users\/60"}],"replies":[{"embeddable":true,"href":"https:\/\/phrase.com\/wp-json\/wp\/v2\/comments?post=17978"}],"version-history":[{"count":24,"href":"https:\/\/phrase.com\/wp-json\/wp\/v2\/posts\/17978\/revisions"}],"predecessor-version":[{"id":80342,"href":"https:\/\/phrase.com\/wp-json\/wp\/v2\/posts\/17978\/revisions\/80342"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/phrase.com\/wp-json\/wp\/v2\/media\/2597"}],"wp:attachment":[{"href":"https:\/\/phrase.com\/wp-json\/wp\/v2\/media?parent=17978"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/phrase.com\/wp-json\/wp\/v2\/categories?post=17978"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}