After two years of disruption, the Covid-19 pandemic is easing, making it an opportune time for businesses to grow. With the opening of borders and easing of travel restrictions worldwide, it's now possible again to think about growing your business globally!
The process of global expansion begins with market research. It is critical for business leaders to have a deep understanding of the markets they are targeting, as well as the competition and local market trends. Due diligence is required to understand how your business could impact the local market.
Here are some areas to cover:
- A market segmentation analysis, which should determine whether or not your product will sell in that local market.
- Find out if there's a gap in the local market by doing a gap analysis. Compare your product or service against the local ones and determine if there's a demand that isn't satisfied by a business in that country.
- How big is the market? You need this information to consider how long it'll take your company to reach your sales targets.
- Will you need to adapt your product or service to this new market in order to suit customer preferences?
- Are there any cultural or socio-political reasons why that market won't accept your product or service?
- Are there suitable talents readily available in that country or will you need to bring talent over too?
In relation to that, here are 3 handy frameworks for your strategic planning before you fully consider your global expansion.
The most common out of all, SWOT (strengths, weaknesses, opportunities, and threats) analysis gives businesses a framework to determine their competitive position and to plan strategically.
For example, your product might be priced higher than those produced in that local market – will this be accepted by the market?
Taking into account internal and external factors, as well as current and future potential, a SWOT analysis gives a realistic look at the strengths and weaknesses of a business, and within its industry too.
It is a practical evaluation model that provides an overview and allows you to explore the differences between your business and your competitors. It is based on facts and driven by data so should serve as a good guide to make business decisions.
Find out more about SWOT Analysis here.
An alternative to SWOT? The SOAR Analysis. This framework identifies Strengths, Opportunities, Aspirations and Results.
While the first two elements should take into account your personal situation, aspirations and results should focus on your desired future situation.
A SOAR analysis is presented as a 2x2 matrix and is a good way of taking stock of your strengths and opportunities, then aligning them with what you want your business to achieve!
Find out more about SOAR Analysis here.
Another option you may consider as an alternative to the traditional SWOT analysis is the NOISE analysis. NOISE stands for Needs, Opportunities, Improvements, Strengths and Exceptions.
This tool incorporates solution-focused language that will aid business teams to build upon their knowledge and goals. It will also help them to overcome any obstacles that have been observed.
It is a good option for businesses that want to create a strategic improvement plan.
Find out more about NOISE Analysis here.
For more tips, download the EBook "Preparing For Global Expansion: How To Get It Right" by submitting the form below.