03 Nov Five ways of internationalising a company
It is essential for internationalisation to develop as a gradual process, consisting of a series of stages that ensure a reduction of the risks arising from carrying out business activities at the time a company enters a new market.
The implementation of the first stages of this process allows for a realistic perception of the actual business prospects on-site.
The internationalisation stages are:
1. Export
the company only directly sells products or services abroad according to demand, without first carrying out any kind of research or development activity on the target market;
2. Retailing
the sale of products abroad is carried out by local distributors. This stage involves the search and choice of players on-site who are able to increase product sales, however, in general, it does not require a business development stage abroad;
3. Self sale
it involves the opening of a foreign sales office, which organises the sale of a company’s products through targeted communication and marketing initiatives;
4. Base development
it determines the establishment of a foreign corporation under specific legislation, which organises the sale of a company’s products using a business facility that is specifically set up on-site;
5. Direct offshore investment (D.O.I)
the company outsources its production and marketing activities entirely or in part in order to obtain a more effective coverage in the market where it is already present or to enter a new market. During this stage, the company tends to develop its products by adapting goods to the target market.
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