International Business and Strategic Business Planning are relatively old concepts which are well known by business professionals around the world. Goods and services have been exchanged autonomously around the world for an extended period of time. Different businesses which are engaged in the import and export business are able to gain additional profits which are not possible on a local level. Moreover, the exponential usage of modern technology has also increased international trade to a great degree.
The world has become a global village where executing business activities is a significantly easy task in comparison to past times. For instance, business setup consultants in a particular country can easily communicate with entrepreneurs in different countries within a fraction of seconds by making extensive use of advanced communication technologies. Different online money transfer companies such as Payoneer and PayPal have made the process of transferring money a highly easy and simple job. International goods transfer companies such as FedEx, TNT, DHL, etc. have made the process of international trading easy. With quick and easy movement of various funds and goods, number of companies which trade internationally have increased exponentially. Any new organization which enters the domain will have to face strong competition from various global competitors who are well-established in the field. The overall success of the company which operates in the international domain is highly dependent on effective international strategic planning.
Strategic Planning enables an organization to achieve various goals and objectives by setting appropriate priorities, utilizing different resources in effective manner and adjusting the overall direction according to various changes that occur in the business environment. Strategies differ significantly while doing local and international businesses. The below-given useful tips could be taken into consideration for successfully planning and executing international business strategy to attain high degree of success in extremely competitive environment in international business markets.
1. Choosing the right market space
It becomes highly important and essential to investigate different market space, evaluate them on various aspects, and choose the most optimal and best-suited market space. International Business Managers would have to critically analyze various products and services that are offered by the organization with an objective of analyzing and evaluating appropriate market space. Choosing an appropriate destination in context and relation to business domain is the primary and most important phase which is directly related to strategic planning of international business.
2. Analyzing and evaluating competitors
After choosing appropriate market space, the second step is to understand various competitive organizations that are already present in the business domain. If the extent of competition by similar organizations is significantly high, then the organization is suggested to pick a location which has a lower degree of presence of competitive organizations, irrespective of whether the demand for different products and services are comparatively low in that particular location. With the presence of less competition, the business organization is more likely to get higher exposure and gain high degree of sustainability.
3. Identification of growth opportunities
Appropriate identification of current and future growth opportunities is a vital and essential aspect of strategic planning. Growth strategies have an objective of expanding and growing the overall businesses by suitable identification of new markets in various new locations which remained unexplored and evaluating effective methods with a prime objective of increasing overall profit. Hence, it is utterly important to properly define the singular or multiple growth strategies during the initial steps of strategic planning.
4. Development of local plan
International business significantly differs from various local businesses on a wide range of aspects. An international business organization would have to operate on local level for which an appropriate and effective local business strategy would be required. Moreover, different strategies must be drafted for various locations due to the difference and high degree of variation in political, legal, and economic parameters of different areas.
5. Finding Strategic Partners
If the Business Manager is considering expansion of business to international domain, appropriate and effective strategies would be required for catering the needs and requirements of different domains. However, it might not be feasible for a singular entity to smoothly and seamlessly execute expansion in international market. To do so, it becomes highly essential and important to find an international strategic partner who is well aware of various market trends in specific region which will help and assist during the course of expansion.
6. Flexibility to change
While considering expansion to different domains in international business, numerous business strategies would be required for varying parameters of different markets. For instance, economic and political circumstances might not remain constant for an extended period of time. It would be highly essential to analyze and evaluate market situation which will help in drafting of effective business strategies.
The above-given list is not inclusive but it is highly essential to consider different aspects during the course of International Business Expansion.