Positive Effects of International Expansion

For many companies, the operation of their business are only done domestically.  This might be because the size or resources of the business preclude them from going abroad.  For other firms, the timing for an expansion might not be feasible.  What we are left with are companies that are already abroad and those that are prepared to expand their operations.  To the companies that are in a position to go abroad, there are numerous variables to consider.  For a start, the determination has to be made whether to even expand internationally.  Just because you are capable of going abroad doesn’t necessarily mean you should. In this post we’ll discuss a little more about the positive impacts that can come from broadening your business.  In a future post we’ll tackle some potential dangers and pitfalls of international expansion.  For now, we’ll talk about what a good international expansion might net you.


Taking your business abroad can offer your business several opportunities and benefits if planned and executed properly.  There are a great deal of factors to pay attention to in the initial research phase.  For example, does your target country offer a more favorable business climate compared to where you are now?  A higher tax rate, raising wages or other increasing costs might signal that international  expansion might be an option for you.  A recession or a depression might also be a signal that international expansion is a good idea.  If you are in a recession, diversifying your revenue stream might insulate you from domestic losses.  Conversely, your business or product might be in a good position to do well in a down market.  In this case, you could take advantage of lower costs  to do business in that country.  This situation provides an excellent opportunity for a company to build trust both with the local consumers but with the local government as well.  

Global Expansion

Similarly, if demand for your product or service are down, reaching an untapped market abroad may provide your business with very lucrative gains.  Being able to offer a product where it is in high demand but low supply can very much make headway into the market.  In the right climate, doing this can create a sustainable and loyal customer base.  By being being the only provider of a good or service will very much endear you to the local consumers.  In time as you continue to provide good service you can build forward and solidify new partnerships and relationships.  This is an excellent base for ensuring that you have a platform to continue to expand and grow.  Without this trust, the path to expansion becomes more muddied and more difficult than necessary.  


As you build exposure for your company, you continue to add to your global image.  Building this global image is key to future expansion.  Consider what you do as your resume for potential future endeavors.  You are not only building experience for yourself and your team, your company is also slowly growing an image of its own.   When you get to a point where your public image is solid, it becomes something that you can hang your hat on and open doors into new ventures.  


International expansion can also have several benefits for your workforce and talent pool.  Companies that are gearing up for expansion usually are usually in a position to be able to attract a great deal of highly skilled people.  You will notice that as your prospects go up, talented people will want to work for you.  Also by expanding internationally, you open yourself to a new pool of potential employees.  THis kind of diversity can lead to an influx of new ideas and fresh blood into your business.  New perspectives can always be useful, especially when taking your business into the the relative unknown.  

International Expansion Benefits

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