After some continuous years of success, each businessman wants to expand business in different cities and countries mainly for exploring the customer base and revenue rate related to the company. For business expansion, organizations prefer to use online platform in form of e-commerce websites. It is not easy to stable the brand value and customer base of the organization. Thus, the marketing executives need to keep their marketing strategy up to date. Business expansion and maintaining the brand value of the organization is a great challenge for every business owner because it requires lots of hard work and strategic thinking skills. This article is mainly related with the key challenges and issues faced by a business owner while planning to expand the business in different cities and foreign countries.
Challenges associated with business expansion
Business expansion is a challenging task for the business owner because it needs proper plan, strategic team with excellent knowledge related with different business concepts. Following are some challenges that as business owner could face while planning to expand the existing business in different cities and countries-
• Knowledge related with laws and legislation of country: The business owner should be aware of laws and legislation of the country where they were planning to expand their business venture. In case the business owner wouldn’t have proper knowledge regarding the procedure to set up a business in new country then there might be the chances that it failed to succeed over there.
• Knowledge related with current technological trends: The business owner and other responsible individuals should have proper knowledge related with current technological trends of the market. This would assist them in a better way and would also make them eligible to enforce the implementation of up to date technology in the organization that makes their work easy to shorten the manual processing of business activities.
• Knowledge about customer needs and preferences in specified customers: The business owner should have proper knowledge related with the customer needs and preferences of that specific country in which the organization is planning to set up a new business. The customer needs and preferences changed on rapid rate as per changing marketing trends so the marketing and sales executives needs to have strong strategic thinking skills so that it become easy for those to retain maximum customers.
• Competition from existing rivalries: The business owner should have proper knowledge related with the competitive enterprises of the country with whom they need to compete. For this, they also require efficient knowledge of marketing strategy as well as pricing strategy regarding the company organization with which they are retaining maximum customers.
• Financial expenses and availability of required resources: Before setting-up new business in foreign country, the business owner should have proper arrangements related with required financial and other resources. Furthermore, the business owner should have proper knowledge related with all nearby suppliers within the country where he is planning to set up a new business.
Bezefits of business expansion
Business expansion is the excellent key strategy that could be followed by the business owner of the organization but for this, he should have proper knowledge related with the legal terms of the country, knowledge related with required business resources and corresponding cost. The required resources might be tangible as well as intangible business resources such as- human resources, financial resources, and technological resources etc. The following section of the article is all about the benefits that the business owner will get with the business expansion in foreign country-
• High financial benefits: The business owner will get high financial benefit with business expansion because this will result in increased customer base of the organization. The business owner should have proper knowledge related with required business resources and their corresponding cost as well so that he doesn’t get indulged under any financial liability.
• More customer base: The customer base regarding the company will increase with business expansion and this will also add the value to their business as well. The increased customer base and their brand loyalty is the key strength of the organization that will increase significantly with expansion of business in different cities and countries.
• Brand awareness: Business expansion will increase brand awareness of the organization among majority of customers that would be beneficial for the brand value of the organization and corresponding financial benefits as well.
Things to be considered
• Laws and legislations of the country where they are planning to open new venture
• Business setup laws and rules of that specific country
• Market trends, customer needs and preferences
• Cost to manage the resources requirement of the organization
Business expansion is all about planning to startup a new business venture in new country with having excellent knowledge related with the laws and legislations of the country work over there. Business expansion is a positive key term for every organization because this results in their increased customer base and revenue rate. Furthermore, the owner should also ensure the availability of required business resources such as- financial resources, human and technological resources etc.