How to Build an International Business Strategy

In the fast-growing global economy, having an international business strategy is essential if you want to take your business to the next level. A plan for international expansion can help to expand your reach, access new markets and connect with a diverse customer base to unlock significant growth possibilities.

However, building a successful international business strategy requires careful planning, thorough research, and deep understanding of challenges associated with operating in different countries and cultures. Expanding your business abroad doesn't necessarily mean setting up an office or branch in a new country, it can also mean buying and selling in different regions or paying teams overseas. In this blog post, we will guide you through the essential steps of creating an effective international business strategy and how you can use Wise's multi-currency Business account to streamline your finances.

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Understanding the Importance of an International Business Strategy

Expanding your business internationally allows you to tap into new customer segments and untapped markets. It enables you to diversify your revenue streams and reduce dependence on any single market or region. By embracing globalisation, you can unlock access to new talent pools, innovative ideas, and strategic partnerships that can drive growth and innovation. Having an international presence also enhances your brand reputation. It showcases your company as one that has a global outlook and is capable of meeting the needs of customers worldwide.

As an example, let's take a closer look at an e-commerce foldable bike seller like Brompton Bikes based in the UK that was keen on expanding globally. Brompton Bikes has managed to do so by bringing distribution of its products in-house. By buying out the distributors and working directly with retailers in different markets, they have successfully expanded to 16 new markets. To enhance their localised marketing strategy in the US, they are also working with a local PR agency to help with more targeted ads¹ .

Similarly, South Korean skincare brand Cosrx, acquired by Amorepacific, has expanded to around 140 countries, with overseas sales accounting for over 90% of its total. Their unique skincare products were able to break into new markets by offering novelty ingredients including bee venom or snail mucin which were previously not available in these markets at affordable price point².

An international business strategy not only fosters growth but also promotes cultural exchange, innovation, and a broader understanding of diverse market dynamics, ultimately enhancing the resilience and competitiveness of small businesses on the global stage. However, it's important not to underestimate the challenges that come with going global. Each country has its own unique set of regulations, cultural norms, competitive landscapes, and consumer preferences that must be taken into account when developing your strategy.

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Conducting Market Research and Analysis

When expanding your business overseas from the UK, small businesses should conduct market research to identify promising target markets and consider partnerships or joint ventures with local businesses. Establishing an e-commerce presence, optimising websites for international search engines, and utilising online marketplaces can extend your brand reach globally. Participation in trade shows and exhibitions also provides opportunities to showcase products/services and gather market insights. Exploring government support and grants for international expansion can also be beneficial. Cultural adaptation, regulatory compliance, and careful planning are essential for success. Tailoring strategies to each unique market is crucial. Let's take a closer look at the key aspects of international market research and analysis.

Identifying your target audience

An essential factor in market research involves identifying your target audience in the new market. Gathering demographic data such as age range, gender distribution, income levels, and buying habits enables you to customise your marketing approaches for effectively reaching potential customers overseas. By understanding the ideal customer profiles for each new market segment, you can develop specific content and campaigns that appeal to their unique needs.

Unique value proposition

Another key element of successful international expansion is developing a unique value proposition. Establishing marketing fit and diversifying your product and services offering sets you apart from competitors by highlighting what makes your products or services special. Include aspects such as quality, durability, cost-effectiveness,and innovation. An effective value proposition not only attracts customers but also establishes trust with them.

Identifying Target Markets and Demographics

To build a successful international business strategy, it is crucial to identify your target markets and understand the demographics of these markets. This will help you tailor your products or services to meet the specific needs and preferences of each market.

Identifying which market your product or service will thrive in is absolutely critical for international success. Consider hiring local experts and native speakers to better understand your target market.

Building Strong Partnerships and Relationships

Building strong partnerships and relationships is a crucial aspect of any successful international business strategy. Collaborating with other organisations and individuals can help expand your reach, access new markets, and enhance your offerings. Look for companies or individuals whose expertise complements yours and who have a track record of success in the regions you are targeting. Remember that building partnerships is not just about what others can do for you; it's also about how you can contribute value to their businesses. Find ways to be mutually beneficial so that both parties feel invested in the success of the partnership.

Utilising Technology to Expand Globally

Technology has become an essential tool for reaching new markets and customers around the world. By harnessing the power of technology, companies can overcome geographical barriers and connect with potential customers on a global scale.

One way to utilise technology for global expansion is through e-commerce platforms. These online marketplaces allow businesses to showcase their products or services to a worldwide audience. With just a few clicks, customers from different countries can make purchases and have them shipped directly to their doorsteps.

With your Wise Business account, you can let your customers pay for your products or services in any of the 9+ currencies including GBP, EUR and USD. Wise currently offers saving them the hassle of having to convert currency and pay the often hefty fees banks charge for cross-border payments. With mid-market exchange rates and low fees, your business can expand internationally with ease. If you sell on marketplaces such as Amazon and Upwork, use e-commerce tools such as Shopify or payment platforms or such as Stripe, you can withdraw earnings in different currencies directly into your Wise Business account.

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Another effective way to leverage technology is through digital marketing strategies such as search engine optimization (SEO) and social media marketing. These techniques help businesses increase their online visibility and reach more international audiences who are actively searching for their products or services.

Furthermore, communication tools like video conferencing and instant messaging apps enable seamless collaboration across borders. Teams can easily communicate with colleagues or partners in different time zones, fostering efficient workflows even when physically distant.

Moreover, data analytics tools provide valuable insights into consumer behaviour patterns and market trends globally. so you can track what's working and where it make sense for you to invest further resources. This allows businesses to tailor their offerings according to specific regions' preferences or needs effectively.

Measuring Success and Making Adjustments

Once you've implemented your international business strategy, it's crucial to measure its success and make any necessary adjustments along the way. This will ensure that you continue to grow and thrive in new markets.

One of the key metrics to track is sales growth. Are your products or services gaining traction in your target markets? Analyse sales data on a regular basis to identify trends and patterns. If certain markets are underperforming, dig deeper into the reasons why and brainstorm potential solutions.

Customer feedback is another valuable source of information. Engage with your customers through surveys, interviews, or social media interactions to understand their needs and expectations. Use this feedback as a guide for improving your offerings or tailoring them specifically for different regions.

Monitoring market share can also provide insights into how well you're doing compared to competitors. Keep an eye on market trends, competitor strategies, and customer preferences to stay ahead of the game.

Take your business to new places with Wise

Remember that building an international business strategy is not a one-size-fits-all approach. Each company will have its own unique challenges and opportunities based on its industry, target market, and resources. It's important to continually assess your strategy and make adjustments as needed to stay competitive in ever-changing global markets.

With your Wise Business account, your business can hold and send money in over 40+ currencies to 160+ countries, with account details in 9+ currencies. Whether you'd like to send in multiple currencies, receive or set direct debits, the Wise Business account allows you to do so with fast and transparent international payments. Additionally, the account provides features like holding money in Jars for easier saving or Groups to streamline your digital card expenses, making it a versatile tool for businesses of different sizes.

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1 Racounter.Net Advice from three small businesses on overseas expansion
2 Personal Care Insights: Cosrx becomes a subsidiary of amorepacific with plans to further global expansion