International Success For Business
By: Viraj Muthreja
What does it take for a business to be successful internationally ?
Money is the clear objective of a business. However there are many things a business must learn before they can start making money and become successful. First off there are thousands of questions you must ask yourself before you can start a business internationally. (such as What is going to be the price of my product/service? Who will be my target market? Where is it going to be sold? etc .) There is intense competition today in the business world internationally. This report will help identify what important actions a business must take in order to become profitable internationally and beat its competitors .Not only will this report be beneficial for your business but also it will show techniques to give back to the community. But in particular it will pay close attention to these seven (7) brand, technology, Innovation, understanding cultures. social media, long term relationships and environmentally friendly . All seven of these actions are essential to follow in order for a business to have a sustainable income.
Brand (logos and slogans)
It is crucial for every business to have some sort of brand. It should be something that is creative and original that represents the company's product strongly and separates your business from the competitors. It should be appealing to your target audience, which will help attract more consumers giving a business the competitive edge . A brand is considered strong when clients and consumers see the product or service and are able to recognize the brand immediately. An example of a great brand would be Gieco. Registering for insurance is something most individuals need to do and is something isn't very fun. Usually what people do is research and find out what is the cheapest insurance possible and go with that. But what Geico did was they added a little more excitement to it by using a mascot to say their slogan “ 15 minutes can save you 15% or more on car insurance”. This strategy is very uncommon and thrilling way to grab the attention of customers because they turned registering to insurance that is something very uninteresting and dull into something more fun and entertaining,where drivers can save more money. And today Geico is one of the most biggest car insurance companies.They are the only insurance company to be using a mascot to represent their company. In other words a brand is something very important for a business it should be unique and differentiates your company from its competitors.
Technology plays a huge role in business. It’s something that is always changing and is getting more and more advanced each day. Technology is not only making everyone's social have easier but is also helping businesses become more profitable. Without it businesses would not even be able to earn a small portion of what they have today. Just imagine having no computers, emails, or phones and on top of that it would be very hard to manage a business internationally without the equipment. Technology allows businesses to make the work more easier and faster which can help businesses make money. A perfect example of this would be Amazon working on a project called “Prime Air”. Prime Air is a delivery service that uses an octocopter to deliver the package straight to the address you ordered from their website in thirty minutes or less. When “Prime Air” releases it will attract many more customers than the company does today. It would be more easier and quicker to reach to your product online and delivered in thirty (30) minutes compared to driving to the store, finding your product and than purchasing it. Even though Amazon is releasing Air Prime in over a year from now the company is getting a lot of publicity and attention from it which is helping their brand get more recognized. While the competitors of Amazon continue to use the old method of a delivery truck and receiving your package in five (5) business days, Amazon will be able get products delivered in thirty (30) minutes which will cause more people to use their services therefore helping increase their sales. In conclusion advanced technology can be highly beneficial for a business it speeds up a businesses process which can help a company save large amounts of money.
Innovation (Unique Selling Proposition)
Every business should have a unique selling proposition. Something that symbolizes or differentiates your product or service from competitors. The proposition should be something that can be produced. Even though you think of the best idea in the world but it can’t be produced, the idea is useless. It must stand out to your target audience since the proposition is new to the market. Your company and customers should also be able to afford the expenses of the product or service. Again, if it’s not marketable the whole idea is useless. A company that did particularly well in innovating and having a unique selling proposition is Apple for their iPad product. It was something new and unexpected in the market. Even though it was overpriced consumers still wanted it because there was nothing similar like the iPad, which made it unique. Apple was in control of the tablet market from early 2010 to late 2011 since the iPad was the only available tablet and because competitors took a long duration of time to duplicate the iPad. Even today where there's countless amount of tablets from all sorts of companies Apple is still on top because of the fact that they were first to create the tablet, so many consumers prefer to purchase iPads over others because they feel Apple has more knowledge and a better understanding on tablets. Even due to the fact that there are more superior tablets for cheaper prices available than the iPad. This proves that adding something new to the market can give your company a competitive edge over others.
Understanding Other Cultures
Understanding other cultures is big especially when it comes to business internationally. Not every culture is the same, some beliefs and customs in one culture can be different from another. For instance the German are known not big risk takers and take business transactions very seriously whereas United States loves taking risks and having humour which is the complete opposite. If something is common in your culture it doesn't necessarily mean it’s common in a foreign culture. Businesses should research (What the culture is like? What are their beliefs? What do they like/dislike? etc ) and respect foreign businesses cultures in order to do business with them. An example of understanding other cultures is Mcdonald's. In countries like India Mcdonald’s doesn't even serve beef because they acknowledge the fact that most Indians worship cows and it would be disrespectful for to the citizens to offered beef. Instead Mcdonald's offers a wide variety of vegetarian food and fewer choices in the meat category. If you compare the North American Mcdonald's menu to the Indian Mcdonald's menu you will a huge diversity just because of their different cultures and beliefs. If Mcdonalds was to have the same menu throughout all their branches the company would be a complete failure. Therefore not every culture is the same, things in your culture can be completely different halfway around the world. When doing business internationally you should be prepared and know what the foreign market likes and dislikes.
Social media is getting more and more popular throughout the business world since technology is getting more advanced. Businesses are starting to realize that it is a great way to connect with their consumers by answering any questions and concerns they might have instead of the old traditional method of going on the company’s website and trying to contact them through email which can take days. Social media can also help market your brand better and create more awareness for their product or service. Millions of individuals are registered on twitter,facebook, and myspace. There many initiatives businesses can do to attract people onto their pages and blogs such as put discounts, coupons, prizes and etc. A company that does particularly well than it’s competitors in social media is ford Motors. Ford has double the amount of followers on facebook than most of their competition. They also have many thousands of followers on other social media like Twitter and Instagram. Even though Ford Motors isn’t doing as well financially compared it their competitors they still have a stronger social media because of the fact they get people involved and connecting with them. Ford is repeatedly doing events where there followers have a chance to win cars or big prizes. The company also shares past experiences and appealing designs of their car models that are to be released . Ford always relates with their followers which keeps their social fans from leaving. Therefore social media can play a big impact on businesses today, it helps companies connect with their social fans more which can lead to a larger consumer base.
“We do not inherit the earth from our ancestors; we borrow it from our children” Since the 1980s, we have consumed over one- third of our natural resource. If there is one thing every business must need to do it is learn how to manage resources properly. Most of the earth’s farm land has been completely urbanized and is now unable to be used up for agriculture. Its important we control the amount of natural resources we have on this planet , and not consume more than we produce so we can save for future generations. A company that is know to be environmentally friendly and has a huge reputation for it is TD Canada Trust otherwise know as the “green bank”. TD has been getting involved in environmental initiatives for over twenty years now. Recently they have been starting to make their branches out of 100% recyclable material and is the only bank in Canada to be purchasing recycled paper and using it for ALL their branches. Being environmentally friendly is a strong part of TD brand they are trying to send messages to consumers that money isn't the only thing they care about like other banks, thus causing consumers will feel more protected and are more likely to open more bank accounts.
Even though it costs more money to be eco-friendly,it is the more ethical thing to do, which can also help cause your brand to be more recognized like TD’s did.
Long Term Relationships
Long term relationships is very important when it comes to business in general. Having customers always purchasing your product instead of the competitions can really benefit your business financially. But in order to have a long term relationship you need to develop trust with your consumers. For instance if you have two businesses that both sell coffee and one company treats you with more respect compared to the other you are more likely to visit that company that treated you with more respect rather than going to the one that wasn't. They need to feel satisfied about your product or service. Your business must meet the wants and needs of the consumer in order for them to return back for more services. The company Apple does a really good job in creating long term relationships. They focus on connecting with consumers emotionally to gain their trust and support, which many businesses fail on doing. Apple wants consumers to feel special and proud of buying Apple products. They did this pretty successfully because today Apple some of the most loyal consumers throughout the world. Apple's brand is known to be really expensive but consumers still purchase their products anyway because they feel a fitting connection with Apple even due to the fact that they are identical products available in the market today .It’s not necessary for a business to sell the cheapest or best product out in the market. As long as you can communicate with consumers to earn their trust and loyalty they will be likely to continue buying your products
In conclusion, running a business is not as easy as it seems, there is much effect you need to put into a business before it can become successful and profitable. Competition is getting fierce in the business world and businesses will do anything in their power to be ahead of another. Following these seven actions can prevent this from happening to your business. The first action is innovation something that your company has that others cannot produce.This will help your company have a huge competitive edge over others. Second is branding every international business must establish a brand. Consumers should recognize who your company is and what you represent. Third is long term relationships consumers should have a way to connect to your company emotionally, so they can continue purchasing your products. Fourth is social media, you should relate to your consumers and assist them in solving their problems and questions regarding the business. Fifth is understanding other cultures, traditions that our normal in your country may not be appropriate in foreign countries. Sixth is technology, the more advanced equipment you have for your business the more faster your production will be operating. And last one is being environmentally friendly, this will help you have a better reputation of your brand and is also a way you can give back to the community. If your business follows these seven actions it will likely be able to earn revenue and become successful internationally.