We are living in a historical moment characterized by profound changes and at the same time by incredible opportunities. In this sentence Italian companies strongly oriented towards exports have reacted better and they have suffered less from the repercussions of inflation and difficulties in obtaining raw materials. For some time the numbers of Italian exports have underlined that corporate internationalization is a rich source of opportunities, such as those represented by the attractiveness of countries such as Germany and United Arab Emirates.
But what are the real advantages of doing business internationalization? Find out how your company can increase turnover and profits through a greater presence on international markets in this article.
Undertaking an export business or doing business internationalization can become a rich source of opportunities for your business. In fact, selling abroad makes it possible to increase the opportunities for development and prosperity. Some advantages are easily identifiable and concern the results obtainable in the short and medium term in terms of turnover. Others are less immediate, but equally important: they refer to the development of the company in the medium – long term, to the increase of its competitiveness and the possibility of building a concrete competitive advantage over the competition. But what are the real advantages of business internationalization in detail?
It is the most obvious and immediate advantage: by exporting, a company consequently broadens its market base. When the additional sales obtained abroad assume a dimension that does not affect fixed costs, then these sales determine an increase in the company's overall profitability. In the end, when the overseas business takes hold and will not only be a marginal section of the company's activities, the latter will undertake a process of growth in terms of size, supported by the growth of the market base.
Corporate internationalisation, and exports more generally, reduces dependence on a single market, allowing a difficult or economically inefficient situation on the domestic market to be compensated for elsewhere. Not only that: no company can think of limiting itself forever to its reference market, because in the current economic context things can change very quickly. If we are not the ones to compete on foreign markets, sooner or later foreign companies will come and compete with us on the Italian market. The experience of competition on the international market, carefully designed and managed in the best conditions, allows companies to build up the financial means and managerial skills to compete with foreign competitors even on the domestic market.
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 become loyal. Furthermore, the international presence will give you the image of a strong and stable brand with positive effects also in the original market. In other words, sell on international markets it allows a company to take its history and its results to the next level, bringing an undeniable economic and social benefit to its stakeholders.
The skills and resources acquired abroad can translate into a significant advantage over competitors who instead choose to give up export opportunities. In fact, operating abroad means interacting with new realities and learning new operating methods: it is a precious opportunity to broaden one's horizons. An experience abroad gives you the tools to be competitive in an international context: the choice to open a road on a new foreign market, perhaps geographically strategic, can make that market the basis for exporting to nearby and very vast consumer basins. These are springboard markets, often facilitated by regional free trade agreements, such as theASEAN area oi Gulf countries.
Now that you have discovered what the advantages 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 reported a checklist of questions that you must ask yourself before starting to choose a target market and an internationalization strategy. Or, if you prefer, you can also compare the critical success factors of internationalization with the characteristics of your company.
Today's market, increasingly globalized and connected, is full of development opportunities for Italian companies. Digitization, global supply chains, the development of new technologies have eliminated many obstacles to international trade by reducing transport costs and promoting an exchange of information and knowledge never seen before, increasing the benefits of exports.
The main consequence of this process is that it also allowed the small and medium-sized enterprises to be able to venture beyond the more well-known markets. Now that you have discovered what the advantages of internationalization are, you have understood how exporting abroad can therefore be the winning choice in 2023 to give new impetus to the future of your business: a safe path in uncertain times, for the possibility of consolidate its growth both in terms of profits and brand awareness.
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