Globalization is one of the most complex business strategies that a company can undertake. Expanding to international markets in order to reach more prospective customers is a real challenge. That’s why, at IBMH, we want to share some globalization strategies so that you can take that next step confidently. Achieving success in your hardware business will be easier than ever!
Steps to follow to ensure your globalization strategy is effective
We can define globalization strategy as a business objective that seeks to expand to international markets with the goal of reaching a much wider target audience to sell or commercialize products or services. A goal that could become essential due to the increasingly global nature of the market.
There is a series of things that you need to keep in mind when expanding into international markets, such as fiscal regulations, competitors and the prices of their products, technology and the market itself, which must be studied in depth to know it as well as possible. We’ll start by looking at which of these two strategies is best adapted to the type of product you are going to sell. Keep in mind that it might be best to begin with the first one, and then, once you see favorable results, continue with the second one.
Two basic globalization strategies for your hardware business
- Concentration. This basic globalization strategy consists of focusing or concentrating resources on reaching a very specific target, audience or sector—one that has been previously chosen based on the affinity of its characteristics with those of your company. This is the surest way to break into a new international market for the first time and do it confidently, because your efforts will be focused on a limited area. The chances of success are higher and the results can be easily analyzed. Many define it as making first contact.
- Diversification. This strategy opts for selling to as many markets and sectors as possible in the international realm. It will reach many more people, but it’s possible that not all of them are part of your target audience. This method is often used by companies with a great trajectory. Our advice is to start with the concentration strategy, and then take the leap with diversification.
Globalization strategies: a plan for defining the customer
Whichever strategy you choose, what you absolutely have to remember is to properly define and locate your target audience. This is how you will be able to start and maintain your export activity and obtain great results, and to do that you’ll need to…
- See if the classic market identification schema is viable, or if you will be able to act without intermediaries on the ground.
- Analyze the cases in which direct contact with the final customer is essential, and in how many of those cases it must be in person.
- Decide on the most appropriate means of communication. And, in turn, study the technology that you will need to have available.
- See if you have the option to attend commercial fairs and expositions. You could make contact with the customer and present your business.
- Study what will be the appropriate promotional material to introduce your products and services.
What a company needs to carry out a globalization strategy
Now, we’ll outline what a company needs if they want to enter an international market and do so correctly.
- Identify legal barriers or obstacles. These will depend on each country.
- Learn about opportunities for the product or service you are going to offer.
- Analyze what the competition is doing, what their products are and what prices they are charging.
- Draw up a complete guide with the action steps you will follow. This is what is known as an action plan in globalization strategy.
- Consider the legal aspects, such as fiscal regulations imposed on international commerce.
- Reach an agreement regarding payment methods for international transactions.
If you’re thinking of implementing one of these globalization strategies in your company to reach more hardware customers, we’d love to join you. At IBMH, we carry out commercial management on five continents and are the best partner to help you reach the markets you need, with the most suitable product. Don’t hesitate to contact us today. We’ll be delighted to help you!