By M. Isi Eromosele

A company that concentrates only on its domestic market is inadvertently restricting its own growth. Inevitably, foreign competitors will come into its home base and challenge it in its market space. Today, international business has no borders. Not in this interdependent and interconnected global economy.

One of the most successful ways for a business to grow is to expand regionally or globally. Interestingly, most companies are too cautious to do so. They envision obstacles and risks, language differences, cultural differences, devaluation and exchange control risks, among others.

However, there are many advantages and benefits in pursuing the international market. By expanding internationally, companies actually diffuse their risks by not wholesomely depending on a singular country’s economy and market. This is especially true if the market for their products and services is mature in their home market, but growing abroad.

Additionally, companies will benefit from having to improve their products and services as they strive to compete in new environments against new competitors.

When they do expand abroad, companies need to adapt their products and marketing mix. Their branding program would need to be completely reevaluated, guided by a new brand philosophy that says, "Globalize but localize".

When naming its new products, a company must conduct research to make sure that the names travel globally. Companies have a better chance of success overseas when they identify a large target market whose needs are not being met by current in-place sellers. By creating new values that are difficult to replicate for this target market, the company will be well positioned to succeed.

Companies angling to enter developing markets need to offer new benefits or introduce inventive pricing schemes, rather than replicate what they offer at their home market. They must be conversant of the liability for possible abuse of their products due to lower literacy levels and poor quality of intermediary channels.

A major decision needs to be made regarding whether to run overseas operations from home corporate headquarters or appoint regional managers who would be responsible for various overseas markets.

The best course of action is to establish regional headquarters that will run operations within specific geographic areas. The regional headquarters should give high autonomy to country managers. In doing so, it can facilitate a good measure of coordination through corporate information exchange systems, company guidelines and regulations.

The allocation of product resources and marketing funds to the different countries must be guided by consumer preferences and purchasing power, distribution strength, competitor positions and future economic forecast in each country.

Highly effective global oriented companies will likely gain market share in expanding to other countries.

M. Isi Eromosele is the President | Chief Executive Officer | Executive Creative Director of Oseme Group - Oseme Creative | Oseme Consulting | Oseme Finance

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