What companies can expect when they go international
You want to go international but don’t know where to start? You should first ask yourself why you want to internationalise. This is an essential but often forgotten step. But beware, there is no “one” right reason. Drivers can vary according to many factors: the size of your company, your sector of activity, or the location of your home market. To help you in this process, we have listed 6 good reasons why you should consider international expansion.
1. Push factors that drive you abroad
→ You have to protect your business by diversifying the risks
How does internationalising your company protect your business?
First of all, by focusing on your home market, you expose yourself to a specific risk, that of domestic market saturation. Indeed, a study conducted by the consulting firm A.T. Kearney showed that 24% of Swiss SMEs surveyed went international because their current core markets were stagnating. If demand is declining or stagnating and you are present in only one market, you will have a hard time bouncing back. But if you are present in several markets, you will find it easier to adapt. On the one hand, because having difficulties in a specific market does not mean having difficulties in all markets, and on the other hand because other markets can counterbalance those in difficulty.
In addition, certain economic risks may affect some markets more than others. Diversifying your markets therefore makes it possible to avoid suffering the full brunt of a fairly localized crisis.
→ You have to evade a strong competition in your home market
Are you unable to find your place in your home market because the competition has become too strong? Do you want to explore beyond your borders to establish yourself in a new market that will encourage you to innovate to meet different needs? Do not hesitate to test, explore, discover and above all develop new services and products in new markets! If they are successful, you can also offer them in the original market and thus distinguish yourself from your competitors.
2. Pull factors that make internationalisation attractive
→ You can gain access to a wider market
Internationalising your business will allow you to reach a larger number of potential customers and to find more partners to work with. Moreover, opening up to a new market also gives you the opportunity to discover new expectations, new demands, new customers. A study by the consulting firm A.T. Kearney showed that 56% of Swiss SMEs have opted for internationalisation to access new customers and markets. These will allow you to expand your range of offerings, strengthen your value proposition, and guide you towards strategic growth.
→ You can recruit new talents and new profiles
Opening your business to new markets will give you access to a variety of profiles from different cultures. These will certainly open the door to a new network of people. In addition, you will find it easier to recruit talent with specific skills that are in demand abroad, for example in countries specialising in certain sectors. For example, if you work in the automotive sector, it can be relevant to set up in Germany, a country with expertise in this field.
→ You can reduce your costs by achieving economies of scale
Yes, expanding your international presence will reduce your (average) costs. A study by the consulting firm A.T. Kearney showed that 26% of Swiss SMEs have gone international to reduce their costs. Indeed, the expansion of your company will lead to an increase in the quantity of services or products offered on the market, which will lead to a decrease in the unit cost of production, and therefore to an increase in margins.
→ You can increase the visibility and image of the brand
Developing your business abroad will allow you to strengthen the image and visibility of the brand. By going international, you can expand your network and you will be confronted with a much wider customer base than in your home country. Your company will immediately appear more attractive and developed. If your potential prospects realise that you are present in many other countries (via a world map of your international presence on your website, for example), you will give off a feeling of confidence and success.
3. How Wyngs can help you in the internationalization process
At Wyngs, we support you during your internationalization, from preparing to enter new markets to carrying out the first marketing actions. You want to internationalize but don’t know where to start? You think your business is stable enough to start expanding but have no idea which new market to turn to? Please do not hesitate to contact us, we will be happy to answer all of your questions!