We are living through a historical moment characterized by profound changes and at the same time incredible opportunities. In this phase Italian firms that are strongly export-oriented have responded better and have been less affected by inflation and commodity supply difficulties. Italian export numbers have long emphasized that. business internationalization is a rich source of opportunities, such as those represented by the attractiveness of countries like Germany and United Arab Emirates.
But what are the real advantages of doing business internationalization? Learn how your company can increase turnover and profits through a greater presence in international markets in this article.
Undertaking export business or doing business internationalization can become a rich source of opportunities for your business. In fact, selling abroad allows you to increase your opportunities for development and prosperity. Some benefits are easy to identify and relate to the results achievable in the short and medium term in terms of business volume. Others are less immediate, but equally important: they refer to the development of the company in the medium to long term, the increase of its competitiveness and the possibility of building a concrete competitive advantage over the competition. But what are the real benefits of business internationalization in detail?
It is the most obvious and immediate advantage: by exporting, a company It consequently broadens its market base. When the additional sales obtained abroad take on a size that does not affect fixed costs, then these sales lead to an increase in the company's overall profitability. Finally, When overseas activity takes hold and will not be merely a fringe section among the company's activities, The latter will undertake a process of growth in terms of size, supported by the growth of the market base.
Business internationalization, and exporting more generally, reduces dependence on a single market, Allowing a difficult or economically inefficient domestic market situation to be offset elsewhere. Not only that, no company can think of limiting itself forever to its target market, because in the current economic environment things can change very quickly. If we are not the ones competing in foreign markets, sooner or later foreign companies will come to compete in the Italian market. The experience of competing in the international market, carefully designed and managed under the best conditions, enables companies to build up the financial means and managerial skills, to compete with foreign competitors in the domestic market as well.
The presence of your products in different markets has the inevitable consequence that many more people will come in contact with your brand, learning to recognize it and build loyalty. Moreover, the international presence will give you the image of a strong and stable brand with positive effects in the home market as well. In other words, sell to international markets Allows a company to take its story and achievements to the next level, bringing undeniable economic and social benefit to its stakeholders.
Skills and resources acquired abroad can translate into a significant advantage over competitors who instead choose to forego export opportunities. Indeed, operating abroad means interacting with new realities and learning new ways of operating: this is a valuable opportunity to broaden one's horizons. An overseas experience gives the tools to be competitive in an international setting: the decision to break ground on a new foreign market, perhaps geographically strategic, can make that market the basis for exporting to nearby and very large consumption basins. These are springboard markets, often facilitated by regional free trade agreements, such as the’ASEAN Area o i Gulf countries.
Now that you have found out what the benefits of business internationalization are., the next step is to understand What are your best elements to focus on to sell abroad. In detail, we have brought back a checklist of questions you need to ask yourself before you set out to choose a target market and internationalization strategy. Or, if you prefer, you can also compare the critical success factors of internationalization With the characteristics of your company.
Today's increasingly globalized and connected market is full of development opportunities for Italian companies. Digitization, global supply chains, and the development of new technologies have removed many obstacles to international trade by reducing transportation costs and fostering an unprecedented exchange of information and knowledge, increasing the benefits of exporting.
The main consequence of this process is that it has also enabled the small and medium-sized enterprises to be able to venture beyond the best-known markets. Now that you have found out what the benefits of internationalization are, you understand how exporting abroad can therefore be the winning choice in 2023 to reinvigorate the future of your business: a sure path in uncertain times, for the possibility of consolidate its growth both in terms of profits and brand recognition.
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