Internationalization for companies is a strategic path of expansion in foreign markets, but also to evolution planned for all operational processes and human resources. Therefore, there is no room for improvisation: understanding the better internationalization strategies it is necessary to win global challenges.
In recent weeks, the Export Report of SACE, which outlines a clear picture: Inflation in the Euro Area will remain high through 2023., and Europe is increasingly approaching a recessionary situation. The outbreak of the Russian-Ukrainian conflict has indeed led to strong and persistent pressures on commodity prices, and for this reason 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 revival.The global market still offers great opportunities today, capable of compensating for those that are 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 “vast” and competition fiercer.
Every company has its own unique characteristics And it's not guaranteed that a product that sells well in Morocco, for example, will be as successful in Indonesia.
It is therefore necessary to operate A strategic and targeted choice to avoid falling into error committed by many businesses, namely that of approaching foreign market entry in an improvised and random manner, generating a waste 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 run the risk, more or less unknowingly, 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 context.
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 it's out of the game.
It is important for a company to develop and communicate correctly its Value PropositionIf it doesn't, it will hardly be able to win customers by overcoming the competition.
The Unique Selling Proposition (USP) can help us with this by answering a question that a potential customer asks themselves when they discover our new brand: “What sets you apart from the competition?”
On its own, claiming to be “unique” is rarely an effective USP. For the Value Proposition to emerge, and for the company to have a real market impact, 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 digital context, following the pandemic, has become increasingly fast-paced and dynamic: tools are needed to control supply chain events, monitor the market's evolution and predict the arrival of new trends.
This monitoring must take place on a continuous and timely basisVisual navigation is not sustainable, as speed can lead to an uncontrolled skid.
The company must knowing how to develop metrics almost in “real time” so that make decisions quickly in the different markets in which it operates. It is therefore essential to identify the right time to enter a new market: Similarly, to follow up on 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 companies that want to sell abroad. In other words, you need 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 must ensure the capability to operate simultaneously with very different markets.
The overall presidium must therefore be accompanied by an area presidiumToday, all markets expect the presence of a local counterpart, even a commercial one. It is necessary to define clear objectives and strategic priorities. You can't do everything at once. Let's remember that resources, starting with financial ones, are not infinite.
If you want to discover how to improve your global strategic positioning, you can read the Octagona services page dedicated to’International Advisory.
The digital road is now a reality: the arrival of the pandemic accelerated an ongoing process. 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 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 proper internationalization model. A strategic vision is necessary.
And the new internationalization strategies present us with the following an evolved and sophisticated situation in the approach to foreign markets. They show that the company must have its accounts in order, a product capable of meeting customer needs, where these customers 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 considered and developed based on these elements, which are then monitored on an ongoing basis.
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