3 WAYS TO IDENTIFY A GLOBAL OPPORTUNITY FOR YOUR BUSINESS
The global trade market is constantly evolving with trends rapidly making their way to the table. Keeping track of perpetual shifts in the global climate can be difficult and time consuming. If you’re responsible for recommending the global markets for your company to enter, it is necessary to be able to find the needle in the haystack of opportunities. These tips will ensure you’re determining the markets with the greatest opportunity for growth. Here are the 3 areas you should invest in when identifying global opportunity:
Identify Complementary Business Models
First, consider existing businesses and how yours could complement them or fill a need that currently isn’t provided. For example, if your business manufactures packaging, look at the businesses in that market that require packaging - such as a coffee roaster (maybe you’ll even get some free beans).
Also, be sure to take a look at trends in complementary markets. Is there evidence of an upward trajectory of growth? If complementary businesses exist but aren’t performing well, there will be a greater risk. It is important to make that distinction when you are narrowing down options for expansion. An advisor can assist you in analyzing the market(s) you are interested in and can determine if it is the right fit for your business.
Who Do You Want to Sell To?
It seems like an obvious step, but thorough market analysis is critical when considering new world markets. Look at consumer trends. Thinking outside of the box to adjust your model for new markets will give your business a leg up when entering the global scene. Offer something unique to entice customers and gain their trust.
Take Dunkin: they managed to steal the hearts and fill the bellies of consumers in 36 countries. We think of them as an inherently American business - after all, “America runs on Dunkin.” However, they have adjusted their donuts to suit diverse groups of customers all over the globe.
On National Donut Day, people in the States were running into their local franchises to grab Boston Cremes, whereas Bangkok Dunkin lovers picked up dry pork and seaweed donuts. Seaweed donuts would (most likely) never be sold in America - but Dunkin did their research when they went global. This was no mistake. They knew that success meant adjusting recipes and messaging to attract global consumers. Your company can do this too, with the help of an expert.
What Are the Limiting Factors?
When considering new global markets, it is important to identify limiting factors, and understand how they could be used to your advantage. All countries have regulatory frameworks that will need to be taken into account when determining how your business will integrate. We’ve identified a few factors you may want to take a look at.
Many countries have laws surrounding the labeling of products. For example, Chile requires that companies put extra labels on products that are high in calories, sodium, sugar, and saturated fats. This creates an advantage for brands that are healthier: no junk, no extra label. In fact, market research expects that product sales will increase and decrease dependent upon those labels, with the healthier, unlabeled options experiencing market growth.
If a market has strict regulations regarding product waste, think about how your product will fit into the greener system. Is your product already environmentally friendly? How can you adjust your processes to meet regulations and the consumer-driven desire to go green?
If a market is heavily impacted by the current state of foreign policy, it is important to consider those implications and how they would affect any sales you make, as well as the likelihood of that market accepting your business. Duties and tariffs can have a significant impact on the viability of your product in a new market.
It’s Time. Go Global.
There is no better time than now to consider global expansion. Our years of experience entering global markets can ensure you have the research to support the decision, along with a strategy to successfully implement. For more information on our global business development services, contact us via email (firstname.lastname@example.org) or submit a form on our contact page.