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Internationalisation of companies: stages and possible mistakes

At some point the opportunity will come to internationalise your company and start on a new path to success. The steps that must be taken to achieve this goal are long and complex, however, it is an
option for growth that opens the doors to exporting.

Achieving the internationalisation of your company allows you to make a big change to improve in different areas, since it is your turn to compete in a more difficult and fierce global market, and brings numerous benefits, such as the expansion of your client portfolio, new business opportunities, increased sales, among other advantages.

You are probably wondering: How can I internationalise my company? In the following post we detail how to internationalise a company, what are the stages and the possible mistakes that are sometimes made and cause serious effects to the organisation. 

Stages for the internationalisation of the company

To achieve the export and international expansion of your products and services offered by the company, it is necessary to follow a series of stages that will allow you to reach customers outside your borders. Let’s look at the 5 stages to achieve business internationalisation

Occasional exporting

One of the first steps to achieve the internationalisation of a company or a brand is the occasional export. It occurs unexpectedly and starts when the organisation allocates a part of its goods or services to be marketed in another country.

In this case, the company is just starting out in international markets and needs the support of local intermediaries to move its products or services; in this field, your company will not have control over it.

Experimental exporting

To internationalise a company you need a bit of experience and this is the second stage of exploring markets outside your borders. It is at this point that the organisation decides to internationalise, starting with marketing and promotion strategies for products and services. At this stage you are marketing with importing agents and you still have no control over the final price that reaches the consumers.
 

Regular export

Regular export comes with much more experience and a larger and more stable portfolio of international clients. It is a phase in which there is control over the marketing elements and influence on the prices that will reach the consumer.

In the internationalisation of the company, a certain part of the inventory is used and taken abroad on a regular basis. They also have a team of employees who take care of the export area and collect all the data from the international market.

The establishment of subsidiaries

 At this stage of the internationalisation of your company, you have to search through the data collected from the international market, where to locate subsidiaries to consolidate the brand and export processes you have worked for.

This phase also constitutes a large investment that covers expenses in terms of human and material resources.

Establishing production abroad

 You have successfully reached stage 5 of the internationalisation of your company, and it starts to become a multinational. You will establish production abroad in the potential market you have found, generating more profit for the company.
 

Common mistakes in the internationalisation process

The internationalisation process goes step by step, until an organisation has the opportunity to enter an alternative market: the export trade. And when handled in the right way, it will bring many benefits and create more business opportunities to end up in a subsidiary.

However, mistakes can be made that lead to failures and large financial losses, so that the experience does not turn out to be so positive. To avoid such an appalling outcome, we will mention some of the most common mistakes that organisations make when undertaking the internationalisation of a company:

Not getting the right advice from experts

Many companies decide to enter the international market without receiving proper advice from experts in the field. They make the mistake of thinking that such advice will cost a lot of money and is not affordable. You need legal advice as well as logistical advice.

Advice is very important because you will receive a guide on how to enter the export market that considers everything from taxes, regulations, rules and standards to cost analysis, which apply in the place where you will establish yourself.

Failure to conduct a thorough market study

One of the main rules for entering a national or international market is to know it well, to know where you are going to insert your brand or product, and all this is achieved by carrying out a market study.

This market study must answer what product you have, your price and that of the competition, if it adapts to the tastes and cultural preferences of the country, what the necessary logistics for distribution are, information that without it the company is lost.

Logistics that do not meet the company’s needs

Adequate logistics is synonymous with zero mishaps, headaches and financial losses. Otherwise, these and more serious problems will arise and jeopardise your organisation’s stay in the foreign country.

The keys to internationalising your company are to know the logistical and regulatory needs of the project you have started to undertake. A freight forwarder is ideal to serve as an intermediary in foreign trade activities and operations

Get the internationalisation of your company with EPBS

At EPBS we offer the necessary tools so that you know the keys to internationalise your company and achieve success both nationally and internationally. We have a personalised service and a highly qualified team.

If you need more information, contact us!