A global presence is an achievement that most businesses dream of. Beyond the prestige of spreading beyond borders and the sheer mass of the market size, a worldwide firm boasts considerable economic durability that can be difficult to acquire in a single nation. Although most recessions have a worldwide impact, there are always countries that are more profoundly affected and countries that largely weather the storm.
But invading every continent is more than a simple matter of planting seeds from San Juan to Wellington and then hoping they succeed. Firms must be positioned to handle the results if they strike international gold. Asian manufacturing companies in particular have had great success over many decades in getting their products to consumers all over the world. Below are some of the things these companies have had to do to make those aspirations a reality.
Handling Logistics
When you are working through all 24 time zones and hemispheric differences in seasons, your company must be properly equipped to handle it. Throw in dozens of different customs law systems, transportation complexities, and language barriers and you're bordering on the impossible.
First and foremost in managing this Herculean task is utilizing an efficient fulfillment center to handle all the international requirements. This system will handle weather and clock issues, deal with shipping transactions electronically, and keep you in the good graces of your diverse customer base. Such facilities are typically located near airport hubs and other transportation centers, providing rapid movement of goods throughout the area.
Understanding Cultural Differences
There is a famous story of American aid workers who traveled to Africa in an attempt to help the impoverished people of the bush. The workers took along solar-powered ovens so that the women of the tribes could safely cook meals for their families. The problem: Due to the hot weather, the tribes' traditional cooking time was after dark. The ovens were useless.
For reasons like that, companies must educate themselves about their targeted markets. They must make sure that they don't bring in products that are not a good match culturally, linguistically, or religiously. It can be a very expensive mistake to arrive in a country with a product that goes against the beliefs or traditions of the people there.
Managing Money
As is frequently the case, a business decision comes down to money. Understanding exchange rates and currency markets is critical for any company that is entertaining the prospect of expanding abroad. Attempting to compete against domestically-produced goods when the exchange rates aren't in your favor is financial suicide. The need to avoid this pitfall makes it important to deal with shared currencies like the Euro as an early step in expansion. In this way, the market is unchanged from Portugal to Slovakia, and your company can complete transactions in the 19 Euro countries with implications from just one exchange rate. By beginning the foray into worldwide marketing with a conglomerate of nations bearing only one currency, you can learn other important lessons with at least the issue of exchange rates off the table.
Until you saturate the world with your product, you aren't achieving the largest possible market. Making the leap to a multinational and then a global corporation is impressive, but it is only successful when proper steps are taken.
Written by Jane Brown
