How to Take Your Company to the Global Market

How to Take Your Company to the Global Market

How to Take Your Company to the Global Market

 

The world is a big place to do business with. While you could choose to stick in your comfort zone—typically, your native place—and go through the same things year after year in business, it often connotes limited growth compared to those who took the risk of venturing overseas.

Yet, while it may sound so easy to make a leap into the global business stage, it does not necessarily always imply success to those who braved the idea. Like how building a startup and its eventual growth has its own sets of challenges and obstacles along the way, expanding to cater for the wider international clients is not without its conundrums for every business.

However, those who do venture on the bigger picture and overcame are surely to find growth to their business which is otherwise restricted in their original, local scope.

Reasons to bring your business globally

Here are a handful of ways in how you would be benefited with bringing your business internationally:

  • Finding a new market helps extend the sales life of your products or services
  • You get more freedom regarding the market you make business with or you get less dependent on the market where your enterprise is originally rooted from
  • In the case of the oftentimes inevitable business-hampering fluctuations, having options to different market helps you even out sales by shifting towards areas with more stable economic weather
  • You get to learn about corporate technology and, equally important, utilizing it as part of the way you do business on a bigger scale
  • You get to compete with foreign companies and even take the battle in their own ground

Questions to Ask

Your business may already be well-entrenched in the local scene and is confident enough in delivering the same quality products or services to a larger consumer base. But hold your horses, ask yourselves these questions first:

  1. How does your product or service fare with the targeted culture?

While there are kinds of products or services that are universally-embraced by people across culture, there are also the sensitive areas which you need to consider for your business to thrive.

For instance, if you are thinking of running a fast food chain in a mostly Hindu community area, ought to know what the people of this faith would consider as offensive and what is allowed, particularly with the kind of meat you’re serving.

In another example, in a country like Bolivia where eating home-cooked meals takes center stage in many of its inhabitants, a fast food chain is bound for a very small market and may not be feasible for business.

Knowing, therefore, not just the demand for a particular product or service but also the culture inherent to the place is essential.

  1. How familiar is your target market with your product or service?

You may be offering a kind of product or service that is still fresh from consumer consciousness or one that is familiar yet something very new. But, whether known or not, part of the branding process would entail you investing lots of time and money in educating your target consumers about what you have to offer.

  1. Are you comfortable operating your business in this new environment?

Unless you are comfortable that someone else will handle the early operations of your business in a new territory, the chance is good that you yourself should be the one doing the work from the start. But to conduct your business effectively, you must first learn about the culture and even have a knowledge of the language at the functional level.

  1. Other important things you should know

When doing a business, the quality of the infrastructure is always important, regardless of the trade. With the Western culture being the international standard for most of the time, you may want to ask yourself whether you can get Western-style accommodation and support as needed.

Furthermore, consider the quality of the roads. Are they cemented or are they still paved on soil? What about the supplies needed for your business? Is there a guarantee for it?

Now, not all places that are a hotspot for something are good for business. Sometimes, there are just those places where your business will not fly. But do not blame yourself for coming across such a bad experience in enterprise. Other times, you have just chosen the wrong place.

The Risks of Exporting

Going global with a business may open lots of opportunities you would not find by sticking to local, but perks such as of this nature do not necessarily come easy. Whether it is finding more than too many opportunities than you can handle or getting afflicted by the fluctuating currencies, the world of international business can be dizzying and not something a domestic-only business could see.

But while having the courage to choose to grow may be a wise choice if you’re serious about making a large leap in business, only those who do overcome the obstacles do attain its wanted benefits.

Many had attempted to reach for the wider world in business but failed. However, it should not imply you following the same route.

Common mistakes businesspeople commit when exporting

Listed below are the common mistakes people make when exporting:

Having no strategy

People may assume that big businesses are well-versed in making well-laid out strategies that maintain their position in their chosen industry, however many of these companies failed as well due to lack of strategy.

Marketing around the world

One common mistake that business people made is to think that they are ready to market their product everywhere. This usually happens when they get so many queries from various countries. People should understand their capacity and their readiness to respond to any open doors especially on countries which they knew a little.

“Different strokes for different folks”

Sales and marketing initiatives must be tailored fit to different countries. One should understand the cultural differences which have a great influence on the marketplace. The same issue must be considered when it comes to packaging, shipping, terms of payments and other fine prints requirements.

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18 Comments

  1. Vivien Elaine A. Gavieta

    Filipinos have proven itself many times in the Global Arena. Not to mention, Bench, Penshoppe, Tanduay, Jollibee and San Miguel , “tatak-noypi products” undeniably possess an extraordinary appeal to the global market. What then will our aspiring local exporters do to win the global market as well?

    The formula is simple. As evident with our successful Filipino producers, it’s a matter of feasting their eyes, filling their hearts, and feeding their souls. How is it done? Feast their eyes by means of allowing consumers to see the beauty and attitude of Filipinos through varying forms, colors and textures of products. Second, Fill their hearts by informing them of your two-way advocacy, one is to promote Filipino products, and the other is to give back to the communities in need. Lastly, feed their souls, by means of showcasing our heritage, history, and stories of Filipino.

    Yes! Its simply taking pride with the authenticity of our materials which can assure durability and originality. Our country has so much to offer, and its about time, to show the world that those expensive bags our Hollywood actresses proudly wear? Are actually “Made in the Philippines”. (Or if made in other countries, surely its materials are sourced from our country). See? The Filipino brand truly has its own identity that has recall and more appeal to the consumers. Truly, its about time.

  2. Ma. Carmela Joy D. Alegada

    The best thing that Filipino exporters should consider and realize before venturing into international trade is the need of a great strategy. Having a good set of planning will never go out of style. The strategy or the plan should include the identification of the the target market and the target country to export the product. An exporter should have a definite market and country to make sure that you can consider the availability of your resources and products. Another thing to consider the the kind of product you ought to export or to cater internationally, it should well ft with the target country and should be quality wise. Global market always consider quality over than that of quantity so a filipino exporter needs to put into consideration that a product should qualify with the customers satisfaction. And lastly in order to compete globally is the idea of patience and being innovative enough to pursue whatever goal you have set. many are called to compete globally but with the balance of patience, perseverance and goodwill an exporter will never go wrong.
    Now came the factors that an exporter should put into mind that there are fortuitous event that might happen, especially that our country is a typhoon visited area. Infrastructure should be well developed in order to provide smooth transportation of goods with the support of both the local and national government.

  3. Geiczar Ross D. Real

    As an exporter, it always best to study the your market and where to get your local resources because that is where will you become productive and less costly. Study your market such as identifying what are the trends, culture, norms and other beliefs that people does in the area to identify what products to offer and how to develop them and make it unique. Mentioned also earlier, you study also where you get your local resources due to the fact that it is best and less costly if you get most of your resources from the host country and to also know what could be the alternatives.

  4. Jocelyn D. Palomo

    Being able to survive in the global market is a very meticulous task to do especially for Filipino exporters. Every transaction has its own process and ways. In order to do so, Filipino exporters should always stay in the game by :

    1. Studying the market and think of a detailed plan.
    To be able to adapt to their business practices and their ways of doing business, Filipino exporters should study the prospected market and see what will sell and what will not depending on the location and condition of the country where you are sending your products.

    2. Starting with 1 country at a time.
    Do it one step at a time. Quality will be achieved once you have focus on one place for a start. You will have more free time to discover things and ideas will come up that you can do in another country that you want to do business with since the ways on how they do business varies from country to country. It will be easier to solve problems when the need arises making the targeted customers to be happy with the services and products you provided them.

    3. Being prepared to carry out shipments quickly.
    Be sure to ship the products on time. Know and calculate the shipping costs and expenses during shipment periods. Check the availability of international shipment and how does it work. Communicate and have a clear shipping detail and make sure to always have shipping insurance to secure your products. This will create a sense of respect and trust from the people whom you are having business with.

    4. Develop your business to sustain international success.
    Pick one product first to take overseas. This will give you time to establish the name of the product and calling the product in the country’s native language will increase the possibility that they will try your product. Keep in mind as well to be aware of the country’s religious beliefs and culture because this will greatly be affected by this factor.

  5. Ma. Lourdes B. Navarosa

    Filipino Exporters played a vital role in the economic boost of the Philippines. We salute you guys. According to the source, Filipino exporters should take advantage of the Philippines winning potential market in the global economy. Came across with the readings, DTI Secretary Ramon Lopez urged exporters to avail the benefit of Free Trade Arrangements (FTA) which the Philippines is a member also of the Asean FTA with China, Japan, Korea, India, Australia and New Zealand. It was also noted that Philippines has a bilateral agreement with Japan and recently Philippines signed the European Free Trade Association (EFTA) and been awarded with Generalized Scheme of Preferences (GSPs).

    With the above mentioned mechanism – these will provide market access for the Filipino Exporters’ goods and services to have a zero tariffs. Also it is noted that Filipino exporters has to reposition themselves in the market by doing relevant differentiation, unique selling propositions and inclusive innovations anchored on the country’s areas of strengths. Philippine Export Development Plan (PEDP) emphasized the need to diversify and expand export markets. On the other hand, service delivery and support system of the government must be properly provided to support the continuity of the macro-economics of the country.

  6. betsy mariz demontano natavio

    Before going globally or penetrating the global scale, there are a lot of factors needed to be considered in order to win in the Global Market. Every country has different cultures and beliefs that may serve as a hindrance in putting up a business. The exporters should know the culture first and the people. They must conduct a study first if the product or services are being accepted and will be patronized without contradicting to their beliefs and culture. The products must be tailored fit depending on the demand of the consumer. It is also very necessary to come up with the branding that will be easier for the consumer to identify. There are a lot of risks to take in expanding the business internationally. The exporter and business people must plan it thoroughly in order to succeed. There is no assurance but all they have to do is to believe to their product and always believe to their own capacity.

  7. Joshua Japitana

    Filipinos are known for our extravagant talents. We can turn a trash into something extra ordinary and a lot more which allows us to be able to compete worldwide. Sadly, Filipinos are also known to be a good imitator.

    Below is one of the things we can do so we can really compete with other people all around the globe.

    *Be New and Innovative- Make sure to offer something new yet, almost everyone can relate. I know it is easier said than done but that’s the only way our product can compete globally. There is no need for us to follow or immitate. We have to create something original and relatable to people. Why should we conform and try to blend in if we can stand out.

  8. Gekka Kaye Eusebio

    The best things that Filipino exporters should do to win in the Global Market is that improve their branding, product quality and learn the culture of the country they tend to export to. Also, the need to cope up with existing market demands and have unique selling proposition and inclusive innovation. The need to strategize and study as well as take into consideration the pros and cons. For example, in the documentary I had watched, Starbucks already had a set a name in the market but why did it fail in Australia? Simply because they did not study the country and that Australians loves coffee especially espresso, know their local barista and Starbucks failed in that Part. On the other hand, as Jollibee goes international, in order to fit in the market, they need to fit the country’s taste and style for food.

  9. Mirriam Dickinson

    I couldn’t agree more on point number 3 on where you have to learn the culture first of the country where you plan on trading. Its like “ the best way to learn a particular language is to live in the country”. If you try to think of it, sitting down and having someone teaching you French language in school or at home will take you ages in order to be fluent with the language. But having interaction is a different thing. It brings a package, aside from language you can learn the culture, their practices, the places, the market, and the people. Try to live in a country where you plan on trading and venturing business. There you can build relationships and trust and finally build your business.

  10. Pearl Joy Ortiz

    -the best thing Filipino exporters should do is to ask if he is ready to go global and his preparedness for a new business venture.
    -build a business plan. It will help him identifying the procedures, legal requirements, the costs, and the strategy of exporting. Venture on global marketing to plan, create, position, and promote your products to improve effectiveness, to have strong competitive advantage, to increase consumer awareness, and finally, to increase profit while reducung costs.
    -identify your potential target market. Do market research. Know your market, current trends, and your competitors. What is good for China may not be good to other countries. Study appropriate approaches for various locations as they are covered with different norms and cultural preferences.
    -advertise. Attend expo or trade shows. It enables you to sell your products and meet prospect business partners. Make use of the latest technology (internet), as we all know social media is very influencial nowadays.

  11. Joe Salvador Mercado

    3. What do you think are the best things that Filipino exporters should do to win in the Global Market? What are the factors that need to be highlighted?
    The Filipino exporters should be more sensitive in the culture of the country that they want to place their business in. It would be useless to sell pork on a Muslim country. By making sure that the product you are selling won’t contradict the culture of the country then we can possible say that we then focus on the quality of the product we are selling and where it would be sold. Factors that needs to be considers when exporting or doing business globally are:
    a. Know the products that you are selling.
    a.1 May it be the quality or price, exporters would need to make sure that the competitiveness of their product is on par or may exceed the expectation from the country in which you are bringing the products unto. One good example are the Chinese products, they focus more in the price than quality, but the availability of their product is so much that it would remove the “rareness” of the products that they are imitating.
    b. Strategy
    b.1. It is not new for a business to have strategies, may it be a strategy for the taxation, product, shipment, market and to everything. This is one the factors though that needs to be considered by all businessmen may it be that you are new or an old timer.
    b.2. Make sure that the strategy is feasible, substantial, reachable and of course possible. New timers and old timers a like would fail if they won’t have a clear strategy.
    b.3. Know your goal. Each member of the company or business should have a clear goal on why they are selling and what do they want to reach. This way everyone is calibrated and can work as one when it is time to work.

  12. The article presented ideas which are essential in taking a company to the global market. It has listed various reasons why a business shall take a higher leap towards success through engaging to the global market. It also has given different issues that a business shall deliberate in order to identify if it is feasible to enter the global economy. In my opinion, the best things that Filipino Exporters shall do to win in the Global Market are studying unique cultures in various target markets in such a way that it shall not violate or offend a certain culture with the packaging, presentation and contents of its product, research for law regulations and customs formalities in order for it to have smooth transactions upon entering the international ports and also during the selling of its products and services, studying and understanding the local language of importing parties especially when the English language is not commonly used in order to clearly address issues and concerns that may arise along the conduct of international business, and researching, studying and analyzing the mode of transportation of its products may it be through sea or air in order to deliver the same quality from its port to international ports.

  13. Nadia Diana S. Casas

    The factors that you need on taking your business globally is to be ready with your expenses, hire best employees that meets your standards,prepare for payments of taxes and rule of legalities,and its culture. With these Filipinos can market thoroughly its products and services.
    Knowing its diversity or its culture you get to know the scope of its economy, what product to add and cater, or services to offer. Because of this you’re starting improving your sales while you’re becoming innovative by adapting their ways.

  14. Jackie Lou A. Lasola

    First, study the culture of the country you would like to deal business with. Does the product or services are acceptable to the culture of the country? Will they embrace it? These questions will help and guide the Filipino exporters in the planning and decision making stage. By understanding their culture deeply, visit the country more often, mingle with the locals, do more research about the country and gradually embrace their culture.
    Second, going into the global market is very tough. Tough competitions and criticisms are the challenges that the Filipino exporters may face. Criticism in terms of the product quality, handling customer service, prices and the management itself. In order to win in the global market Filipinos should consider the following: improve marketing strategy, conduct a continuous product development, establish research and development team and have a consistent employees training and development.

  15. Cybel Valaquio

    Filipino exporters should do to win in global market are the following:
    • To plan, do market research and strategize where the potential location to export goods.
    • To have a better understanding of the supply chain process. Filipino exporters must provide a good coordination between sourcing, manufacturing, distribution and customer service in order to meet the customer’s needs and satisfaction.
    • To consider the fact of having a business partner to help you to expand globally. For example to collaborate to other international company by being a supplier of its raw materials in producing a product.
    Here are the factors that need to be highlighted:
    • The Cultural Factor- This refers to the beliefs, norms and traditions of a particular place. This factor must be consider as the filipino businessman export his products to a certain country. Every nation has different cultures, what is acceptable here in the Philippines may not be acceptable to other countries. In exporting, you must have to be flexible and to adapt other cultures in order for them to consider your products or goods.
    • Language- This is also an important thing in entering global market. An exporter must learn the language of a certain country to penetrate with or to do business with. In order to have an effective communication, being able to speak and understand their language rightly will create a good coordination with both parties.
    • Economic environment- Filipino exporter must know the economic status of the country before he will export the goods. If the economy and capital market is stable or not.
    • Legal Aspect- As an exporter, you must have the knowledge about the laws, policies, legal rules and regulations of their government or state in order to operate your business in a legal way.

  16. Jonathan Reeve B. Miranda

    Advertisement and promotion must be applied for the business to be known and to let people have an idea what the product is all about. The price should be reasonable without affecting the product’s quality. Price and quality should be balanced. Again, connections is a must. Having them can help you and your business grow. Processing of orders must be fast and reliable as well. Customers always want their ordered product to reach them as soon as possible. Delaying the process and shipment of it might disappoint them and that will lead to bad feedback and will destroy the reputation of the company. While processing and shipping their order on time will satisfy and will make them happy and they will probably order again. They might also recommend your company to others when the service is very good. New customers for you if that is the case.

  17. Jholina B. Indac

    “global exporting” first and foremost starts with the product or services that your company offered. I think the best thing that every Filipino marketers must deal guaranteed products that offers reliability, assurance and exceed customer satisfaction. Moreovers, marketers must endure changes, strong foundation, exploring new sets of customers and set up proficient supplies to meet customers demand. But good thing being a Filipino for us we’re ready and open to new possibilities and changes. Easy to cooperate with others.

    Here are some of the factors to be considered in doing business globally.
    1.product
    2. Customers
    3. Wide range of Employee
    4. Market Competition
    5.Location

  18. ANTONIO CUENCA JR.

    Q1. What do you think are the best things that Filipino exporters should do to win in the Global market?
    A1. Filipino exporters must take heed of their exported products, like Mangoes; Mangoes must undergo quality check procedure to determine that mangoes are in good taste (sweet and firm) and worthy to purchase in order to satisfy foreign consumer. In addition, knowing that Filipino mangoes are classy will surely increase popularity that could lead Filipino businesses to win in the Global Market.

    Q2. What are the factors that need to be highlighted?
    A2. Mindset and skill are the most highlighted factors to consider by Filipino exporters which are more relevant to the example as mentioned above. Minset needs to win in the Global Market; the more you learn the faster you become succesful and that will help you develop your skill to provide a good variety of your exported products like again mangoes.

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