What Does It Take To Be A Successful International Business?
1. Having a good understanding of the market as well as cultural sensitivity.
2.the business should find a clear competitive advantage valued by customers that would actually work in the new marketplace.
3.Next the business should have a well know reputation within its domestic placement so that foreign countries would easily be willing to invite the business in.
4. Being flexible to change
5.Having a realistic global growth strategy
6.Having a strong management team
7.Proceed with caution.
If a business is able to efficiently incorporate these factors into their strategic plan, it is very likely that the business will go on to becoming very successful internationally.
Having a good understanding of the market as well as cultural sensitivity.
Establishing, developing, and maintaining successful business relationships with distant partners is not an easy task. A major barrier is cultural distance. A lack of knowledge about cultural differences can create difficulties for firms. It is very important that businesses find ways to break down cultural barriers and establish close business relationships with partners. This a plays a major factor for success in international business. Unless exporters are sensitive to the cultural aspects of buyer-seller relationships, it is very difficult to build long-term high quality relationships. Companies should employ foreign workers and court foreign parties as their operations go global to take advantage of new markets in other countries. This makes cultural sensitivity in business more important than ever. An ignorance of a country's cultural norms can offend important clients, alienate employees in other countries. If one does not successfully understand the countries customs and norms, it can be possible that they may not be too successful either. Dynabrade International, a manufacturer of abrasive power tools in Clarence is a company that shows great cultural sensitivity. Dynabrade International does business in more than 80 countries and prints multi language sales literature. They also have 12 different languages that are offered as sales aid which helps reduce language barriers, making it easier for building relationships and communicating effectively. The ability of Dynabrade to have cultural sensitivity has allowed them to expand their business into more than 80 countries, giving them high levels of success each year. Therefore, the more culturally sensitive a business is, the more accepting people are of the business. That is one of the fundamental aspects of building a relationship with partners in other parts of the world. Taking the time to learn about a country's culture and language shows you are making a personal gesture to understand more . Making foreign business partners feel that you care will create betters bonds and open communication. By doing so it is guaranteed that a business will be more successful in various counties compared to businesses that do not take the time and effort to understand the culture of its foreign business investors at all.
The business should find a clear competitive advantage valued by customers that would actually work in the new marketplace.
A competitive advantage is the unique position that an organization develops in
relation to competitors that allows it to outperform them consistently. Business is all about competition, it is always about out weighing your competitors and maintaining an advantage over them constantly. A sustainable competitive advantage, is when a business possesses value-creating processes and positions that cannot be easily duplicated or imitated by other firms, which usually leads to higher achievement results. having a sustainable competitive advantage provides a long-term advantage that is not easily replicated. It gives the company a great lead within its competitors, one that can be maintained for a significant amount of time even in the presence of competition. In order to be successful internationally it is important that a companies product/service is different from the products/services that already exist in the foreign country. The company should take time and research to find ways to make their product the best, however they cannot differentiate the product too much because the it should still be able to fit the wants of its foreign marketplace, the target consumers should be able to value and unitize it efficiently. UPS is a business that shows a great competitive advantage compared to it competitors .UPS is the world's largest package delivery company and a leading global provider of specialized transportation and logistics services. Using advanced technology, access to global resources, and an integrated network of physical, technological, and human assets, UPS provides a powerful competitive advantage that can help a country earn repeat customers and grow their business. UPS is also one of the only companies in the transportation industry that have environmental responsibility. The company leads their industry in mitigating climate impact. Among their efforts, they offer all modes of transportation for lower-carbon choices by providing easy and inexpensive carbon offsets for the climate impact of shipping. UPS works with customers on eco-responsible packaging, eliminate tons of paper through paperless technology. All of these services gives the company a great sustainable advantage that can benefit them while they make decisions to expand and become even more international. Not only do they provide fast and efficient services that would benefit any company around the world but they also are very socially responsible which could really help them expand in a country that values their environment.
The business should have a well know reputation within its domestic placement so that foreign countries would easily be willing to invite the business in.
Being flexible to change
Having a realistic global growth strategy
It is very important to integrate a company into the idea of having continuous innovation,in order to stay attractive in the eyes of customers and suppliers. By continuously growing and innovating a company shows that they are able to think outside the box constantly allowing potential partners to know that the company is confident and believe in keeping updated with its societies needs and wants. By showing the ability to grow, a company has a higher chance of staying competitive. Growth in sales and revenues shows that a business is dedicated. In order to be successful internationally it is very important that the business has a clear and realistic growth strategy that they would be willing to and able to achieve. Far too many companies fail to achieve their growth targets in revenue and profitability. However, the probability of achieving profitable growth is heightened whenever an organization has a clear growth strategy. Domino's Pizza is a business that has shown exceptional global growth, showing their potential marketplaces that they are dedicated and are always looking for ways to become bigger and better. Domino’s is capitalizing on the “joy of pizza” almost everywhere. The company just posted domestic same-store sales growth of nearly 5 percent during the fiscal fourth quarter and about the same percentage for its international stores for that period and for the full fiscal year.The company has just opened its 10,000th store in the year 2013 and that too in Istanbul.Only eight restaurant chains worldwide have 10,000 outlets, yet the business is still looking for ways to continue its growth even more. Within 70 countries Domino's are known as the pizza sales leaders and in 29 countries they are close to second. the emphasis on growth overseas has become a major factor in the success formula of the business. Because the business has shown so much success in growing and expanding, it has gained an advantage to expand even further. Dominos has showed it's ability to come up with very successful growth strategies which definitely makes its easier for the business to find even more international markets to join compared to its competitors. Dominos has also shown exceptional sales and revenue growths through consistently innovating their services to match their international consumers, this has resulted in great success. Dominos is now one of the leading businesses in the fast food industry because of their dedicated passion to international growth. Therefore, having a effective global growth strategy is crucial when it comes to becoming successful internationally, since it allows a company to show potential marketplaces that they are a strong and that they have the ability to constantly grow by satisfying their costumers as well as achieving their sales goals.
Having a strong management team
As more businesses expand their focus to include foreign markets, the demand for competent international management professionals increases. The management of a business must be interested in taking advantage of opportunities to contribute to a firm’s international business goals, they need a deep level of knowledge in finance and currency, global strategy, and foreign legal and accounting practices, along with sharp cross-cultural skills. Arpi's Industries Ltd. was recognized as one of Canada's best managed companies in 2012 for having demonstrated outstanding business performance and innovative management. Not only did this business demonstrate excellence in Canada, but from coast-to-coast the private company has expanded beyond canadian borders. By harnessing their strong management team, a powerful business plan and a solid balance sheet, the company has created the support necessary for strategic international investment. The management team of a business are the people who are the ones who own the reputation of the company as well. If a company does not have a strong management team then is it very likely that they would not go far as a successful business either. Making real connections and developing lasting relationships is important to international business perhaps even more so than in domestic markets. To conduct business profitably in an increasingly borderless world, managers need to learn how to understand and adapt their business to their international clients and navigate through foreign cultures with ease. The reason that a company needs to make sure that they have a good organization and management team for their business is because it will keep things running smoothly. It will ensure that everybody knows what they are supposed to be doing and what the goals of the business are. This will keep everyone on the same page and working towards the same goals. There is no doubt that good managers are critical to a business. They are the ones who will make the important decisions so they have to have the experience and the judgement to make good ones. Bad managers can do an enormous amount of damage to a business. A bad manager will make bad decisions, will hurt the morale of the employees and the relationship with customers. Having a strong management team plays an important role for making a business successful internationally because they are the main people that create the organizational structure of a business, if the structure of a business is not set with high ethics, high standards and high goals then it may result in a downfall for the success of a business, especially on an international level.