Developing the right international expansion strategies to target countries with the greatest growth potential

International expansion strategies can be challenging for B2B software companies looking to go global. Deciding which countries or regions to target involves weighing the benefits of developed versus emerging markets, considering language barriers, and designing localised marketing approaches.

Implementing effective global expansion strategies is critical to targeting the most promising and profitable countries. Your strategy should assess not only economic indicators such as GDP growth, but also factors such as market competition, cultural differences and the legal landscape.

Most CEOs we speak to have some experience of international expansion, but many management teams lack this expertise. To make informed decisions about global expansion, it’s essential to have a flexible and tactical expansion strategy. Read on to learn about the factors to consider when developing your strategy and how to effectively target specific countries.

Why should software companies go global?

Entering international markets with the right international expansion strategies is a strategic move for software companies because of the global demand for new technology. Before deciding where to expand, it’s important to define your goals. For example:

• Increase revenue: Tapping into new markets and customer segments can boost your top line and increase revenue.
• Increase market share: By competing in new markets, you can win customers from local competitors.
• Diversify risk: Expanding into different regions can insulate your business from country-specific risks such as economic recession or political instability.
• Expand Customer Base: Serving new customers in different countries can create a virtuous cycle of increased customer base, revenue and market share.

How software companies should target specific countries for expansion

When targeting specific countries for global expansion, consider market size, GDP growth, competition levels, cultural differences, and the legal landscape. Here are five key ways to target specific countries and set up the right international expansion strategies:

1. Prioritise countries with large software markets.

Companies worldwide are increasing their software spending every year, and many markets offer significant potential for revenue growth and market share expansion due to large software markets.

Tips:

• Research software markets to identify growth opportunities.
• Use market intelligence tools to gain insight into market size, growth rate and competition.
• Use intent data to identify companies that are actively researching enterprise software solutions.

2. Research the business and cultural norms of your target country

Cultural differences have a significant impact on doing business in different countries. Understanding a country’s business and cultural norms will help you tailor your offerings to the preferences and expectations of local customers.

Tips:.

• Carry out a political, economic, social, technological, legal and environmental (PESTEL) analysis.
• Familiarise yourself with the local culture and customs.
• Seek insights from people with business experience in the target country.

3. Develop a marketing strategy that resonates with local buyers and integrate in your international expansion strategies

Creating a localised marketing strategy is essential. Consider the local language, culture, customs and norms. Use market research tools to understand consumer preferences and buying habits.

Tips:

• Tailor messaging and positioning to local markets.
• Adopt an account-based marketing approach.
• Engage with local influencers and opinion leaders.

4. Consider partnering with local organisations

Partnering with local organisations will help optimise your marketing strategy and product feedback. A local partner can provide access to existing networks and resources, helping you to establish a presence and reach a wider audience.

Tips:

• Research and check the reputation of potential partners.
• Establish clear partnership agreements that outline roles and responsibilities.
• Monitor the partnership to ensure it is meeting expectations.

5. Have a sound localisation strategy

Localisation is the process of adapting a product or service to meet the needs of a specific market, including translating interfaces and tailoring offerings to local preferences. This is part of great international expansion strategies. We also talk about it here. 

Tips:

• Hire a professional localisation team that understands the language and culture of the target country.
• Develop a glossary to ensure consistent translation.
• Translate all user-facing content, including FAQs and user guides.
• Monitor customer feedback to refine localisation efforts.

Expand profitably with the right international expansion strategies

Well-thought-out international expansion strategies will help avoid common pitfalls and maximise success in new markets. Be aware of potential risks such as differing regulations, language and cultural barriers, infrastructure differences and pricing issues. Use the tips provided to effectively navigate new global markets. With the right strategy, you can successfully expand and capitalise on global opportunities.

You can also ask yourself these 5 crucial questions on international expansion before starting.