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What are the Best Strategies for International Business Growth?

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  • Written By: N. Kalu
  • Edited By: Allegra J. Lingo
  • Last Modified Date: 15 November 2016
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There are a number of factors to consider when looking for the best strategies for international business growth. Healthy corporate growth and expansion into international territories requires a strong understanding of the market in different countries. International business growth often requires companies to overcome various barriers before establishing operations abroad. Overhead costs will also have to be taken into consideration for any company seeking to undertake international development efforts.

Understanding the market in a particular country will be crucial to the success of a company's product in a new territory. The company may be used to getting a particular sales volume in one country, but will not necessarily achieve the same result in a different country. Multinational companies must understand how people in different countries are using their product. It is also important to establish competitive advantage over domestic products competing in the same industry or sector.

Figuring out how to transport products in a different country is part of the international business growth process. Foreign countries may have certain factors that prohibit a product from being transported in the same manner as it is in a company's base country. For instance, industrial companies may have to consider the climate of the target country in order to come up with better product shipping methods. Rough and difficult terrain will also make a difference in how the company moves its products from one warehouse to another.

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With every new venture, there will be barriers of entry that a company will encounter and must overcome. Certain countries may have restricted trade agreements that inhibit a product from a particular country from being sold and traded. There may also be high import tariffs exacted on a foreign company's product. Companies which are undertaking international business growth will have to weigh the costs of exporting their goods or services to foreign countries against the benefits of having offices all over the world.

Opening up new operations abroad can be a very expensive operation. Overhead costs such as building maintenance, transportation and warehousing, and regulatory fees are all factors that will need to be budgeted for before a company decides to expand operations abroad. In addition to costs related to products and overhead, companies must consider the salaries and benefits for the employees. Companies should always analyze the salary structure of their industry in a specific country before deciding to open offices in that country.

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BanjoBill
Post 1

I find it interesting to see how large corporations from one's own country operate differently in other countries. Coca-Cola, for instance, has different recipes for different countries. McDonald's doesn't serve beef in India, as many Indians view the cow as being sacred.

If you want to be successful in new locations, it is absolutely crucial to understand the culture and preferences of your new markets

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