The current economic situation worldwide that our societies are facing makes it more challenging for agents in each territory to outline an economic strategy. The companies’ role is of utmost importance here, not only in leveraging the regions (in which they operate) but also through their ability to produce and export goods and/or services (contributing actively to supply other regions of the globe).
The phenomenon of economic globalization is key to the viability of the companies and to healthy competition in the international markets.
However, with the increasing pressure on international businesses, entering foreign target markets is becoming a task increasingly difficult to new companies.
Aside from enabling new ways of selling goods and services, internationalization has become – for several years – one of the key elements which contributes the most to the smooth running of the companies, as well as their ongoing mid-term and long-term viability. To succeed locally and stand as a reference towards their peers, companies must build and grow an international presence. Additionally, internationalization will hardly succeed if the companies are not competitive within the boundaries of their own country.
This way, internationalization may also be seen as a matter of competitive edge in face of external companies, given the greater dynamism of international trade in the global scenario. Therefore, access to international markets demands an extremely careful analysis of the status quo in the region and the situation of the competitors in face of the behavior of international entities in the business segment.
Taking into account these premises, why is internationalization more and more a right choice?
- It conquers a true autonomy regarding seasonality and possible hurdles of the local market;
- It allows the companies to access a larger consumer market;
- It improves the companies’ image, granting them extra credibility;
- It facilitates the augment of production capacity;
- As a result of that augment, it reduces the costs of their productive efficiency.
However, sometimes it is hard for small and medium size companies to understand the trends of the global economy, making it difficult to take advantage of new commercial opportunities. In this sense, the companies’ size does not have to be a barrier to expanding outside the national territory.
To sum up, internationalization can be viewed as a very positive opportunity for companies to improve their ability to attract new clients. This matter should be accounted for when starting or expanding a business. At Market Access we have a multidisciplinary team suited to help you in this process of international expansion. For further information, contact us!
Knowledge & Training Business Unit Manager, Market Access