Internationalization for companies is a strategic path of expansion in foreign markets, but also to evolution planned of all operational processes and human resources. There is no room, therefore, for improvisation: understanding the better internationalization strategies Is needed to overcome global challenges.
In recent weeks, in fact, the Export Report of SACE, which outlines a clear picture: inflation in the Eurozone will remain high through 2023, and Europe is moving ever closer to a recessionary situation. In fact, the outbreak of the Russian-Ukrainian conflict has led to strong and persistent pressure on commodity prices, and because of this, many Italian companies will be forced to Thinking of new solutions and strategies.
Precisely for this reason, business internationalization can be a great opportunity for revitalization: The global market still expresses great opportunities, capable of compensating for those lacking in the domestic market.
As already Octagona reiterated when we asked ourselves. Where to make exports despite global tensions, at this moment in history you don't need a rethinking of your company's international presence, but A repositioning in markets through new internationalization strategies.
Many Italian companies, while knowing the advantages of Internationalizing your business abroad as a strategic choice, don't know exactly Where to sell their products. Operating internationally, the market becomes increasingly “larger” and the competition fiercer.
Each company has particular peculiarities and it is not certain that a product that sells well in Morocco, for example, can be as successful in Indonesia.
It is therefore necessary to operate A strategic and focused choice to avoid falling into error committed by many companies, namely that of tackling entry into a foreign market in an improvised and haphazard manner, generating losses of time and money.
Precisely because of their inability to plan an effective strategy, companies in our country often face A situation in which they find themselves in the middle among numerous strategies and different market philosophies. In other words, they more or less unwittingly run the risk of not having a clear positioning, confusing the market and losing their competitive position to direct competitors.
How then to avoid this problem? Based on our international experience, here are what are the 5 key success factors to get more competitiveness in foreign markets in this particular macroeconomic environment.
To stand out from the competition, even in international markets, you need to have distinctive and innovative products: This enables them to compete on a large scale. Growth champions are companies that have created New solutions to business or consumer needs.
Those who present uninnovative products must be prepared to propose a strategy of cost leadership, otherwise he is out of the picture.
It is important for a company to develop and communicate correctly its Value Proposition: If it does not, it is unlikely to win customers by outperforming the competition.
The Unique Selling Proposition (USP) can help us with this by answering the question a potential customer asks when they discover our new brand: “What sets you apart from the competition?”
In itself, claiming to be “unique” is rarely an effective USP. For the Value Proposition to emerge, and the company to have some impact on the market, you have to be able to distinguish yourself in aspects priority for the customer.
If you are interested in improving your competitive positioning, you can read the Octagona services page dedicated to the Temporary Export Manager.
The pandemic-driven digital environment has become increasingly fast-paced and dynamic: tools are needed to control supply chain happenings, monitor the evolution of the market and predict the arrival of new trends.
This monitoring must take place on a continuous and timely basis: Visual navigation is not sustainable, as speed can lead to uncontrolled skidding.
The company must knowing how to develop metrics almost in “real time” to be able to make decisions quickly in the different markets in which it operates. It is therefore crucial to identify the right time to enter a new market: Similarly, to follow up on the entry, it is equally important to identify the right time to implement international marketing campaigns.
Similarly, the digital environment has also made it necessary to a strong global presidium for businesses that want to sell abroad. In other words, you have to be Ready to step in where the market demands it In the shortest possible time.
This puts a lot of pressure on the financial aspects that need to ensure the ability to operate simultaneously with very different markets.
The overall presidium must therefore be accompanied by an area presidium: Today all markets expect the presence of a local counterpart, even a commercial one. È Need to define clear objectives and strategic priorities. Everything cannot be done at the same time. Let us remember that resources, starting with financial resources, are not infinite.
If you want to find out how to improve your global strategic positioning, you can read the Octagona services page dedicated to the’International Advisory.
The digital road is now a reality: the arrival of the pandemic has accelerated a process already underway. To remain competitive, companies must therefore Focus on digital skills in an international context.
It is not enough to make a nice e-commerce site to sell in the US. If I don't run the compliance, logistics, communication and promotion I risk having few visits and turning my project into a failed exercise.
Digital transformation is a path that must therefore be guided: to do this you need method, acquiring the right skills in the digital sphere, to make the most of them in the context of international expansion.
If you are interested in learning about how to start a digital journey abroad for your business, you can read the Octagona services page dedicated to the Digital Export.
What we have seen reminds us that for a proper internationalization model. a strategic vision is needed.
And the new internationalization strategies present us with the following An evolved and sophisticated situation in approaching foreign markets. They show that the company must have the accounts in order, a product that can meet the needs of customers where they are, a Timely control of information and the contemporary ability to update the growth path almost in real time.
Foreign investment should therefore be weighed and developed on the basis of these elements, which are then monitored on an ongoing basis.
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