Internationalization for companies is a strategic path of expansion on foreign markets, but also of evolution planning of all operational processes and human resources. There is no room, therefore, for improvisation: understanding the best internationalization strategies it is necessary to overcome global challenges.
In fact, in recent weeks the Export report of SACE, which outlines a very precise picture: inflation in the euro area will remain high also for 2023, and Europe is getting ever closer to a recession. The outbreak of the Russian-Ukrainian conflict has in fact led to strong and persistent pressure on the prices of raw materials, and for this reason many Italian companies will be forced to think of new solutions and new strategies.
Precisely for this reason, corporate internationalization can be a great opportunity to relaunch: the global market still expresses great opportunities today, capable of compensating for those that are lacking on the domestic market.
As already Octagona he reiterated when we asked where to export despite global tensions, in this historical moment there is no need to rethink the international presence of your company, but a repositioning on the markets through new internationalization strategies.
Many Italian companies, while knowing the advantages of internationalize your business abroad as a strategic choice, they do not know Exactly where to sell your products. By operating at an international level, the market becomes increasingly "vast" and the competition fiercer.
Each company has particular peculiarities and a product that sells well in Morocco, for example, may not have the same success in Indonesia.
So it is necessary to work a strategic and targeted choice to avoid making a mistake committed by many companies, that is to face access to a foreign market in an improvised and casual way, generating waste of time and money.
It is precisely because of their inability to plan an effective strategy that companies in our country often face a situation in which they find themselves in the middle between numerous strategies and different market philosophies. In other words, they more or less unknowingly run the risk of not having a clear positioning, confusing the market and losing their competitive position with respect to their direct competitors.
So how to avoid this problem? Based on our international experience, here are the 5 key success factors to get more competitiveness on foreign markets in this particular macroeconomic context.
To stand out from the competition, even on international markets, you need to have distinctive and innovative products: in this way it is possible to compete on a large scale. Growth champions are companies they created new solutions to the needs of companies or consumers.
Those who present products that are not very innovative must be ready to propose a strategy of cost leadershipotherwise it is out of the game.
It is important for a company to develop and communicate your Value Proposition correctly: if it doesn't, it will be difficult to win customers over the competition.
The Unique Selling Proposition (USP) can help us in this, by answering the question that a potential customer asks himself when he discovers our new brand: “What sets you apart from the competition?”
By itself, claiming to be “unique” is rarely an effective USP. For the Value Proposition to emerge, and the company to have a certain impact on the market, you have to know how 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 Temporary Export Manager.
The digital context, following the pandemic, has become increasingly fast and dynamic: tools are needed that allow you to control the events of the supply chain, monitor the evolution of the market and anticipate the arrival of new trends.
This monitoring must take place continuously and punctually: Navigation by sight is not sustainable, as speed can lead to an uncontrolled skid.
The company must know how to develop metrics almost in "real time" to be able to make decisions quickly on the various markets in which it operates. It is therefore crucial to locate the right time to enter a new market: similarly, to follow up on entry, it is equally important to identify the right moment to implement international marketing campaigns.
Likewise, the digital context has also made it necessary a strong global presence for companies that want to sell abroad. In other words, one must be ready to intervene where the market requires it in the shortest possible time.
This puts a lot of pressure on the financial aspects that must guarantee the ability to operate simultaneously with very different markets.
The global garrison must therefore be accompanied by an area garrison: today all markets expect the presence of a local counterpart, even a commercial one. AND necessary to define clear objectives and strategic priorities. You can't do everything at the same time. Let us remember that resources, starting from financial ones, are not infinite.
If you want to find out how to improve your global strategic positioning, you can read the Octagona services page dedicated toInternational Advisory.
The digital road is now a reality: the arrival of the pandemic has accelerated a process already underway. In order to remain competitive, companies must therefore focus on digital skills in an international context.
It's not enough to make a nice e-commerce site to sell in the USA. If I don't handle the compliance, logistics, communication and promotion, I risk having few visits and turning my project into a bankruptcy exercise.
Digital transformation is a path that must therefore be guided: to do it you need method, acquiring the right skills in the digital environment, to make the most of them in a context of international expansion.
If you are interested in learning how to start a digital journey abroad for your business, you can read the Octagona services page dedicated to Digital Export.
What we have seen reminds us that for a correct internationalization model a strategic vision is needed.
And the new internationalization strategies present us an evolved and sophisticated situation in the approach to foreign markets. They demonstrate that the company must have its accounts in order, a product capable of responding to the needs of customers, where they are located, a timely control of information and the contemporary ability to update the growth path almost in real time.
Foreign investment must therefore be weighted and developed on the basis of these elements, which then come continuously monitored.
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