By Teresa Lewis of Mauve Group

     As any business operating in 2019 is aware, the modern marketplace is global. Trading overseas offers a competitive advantage to any organisation, whether in reducing operational costs or finding new customers for your products and services.

     Perhaps your business has outgrown its foundations in your home market, or you have pinpointed an overseas market with a lucrative gap your product could fill. Whatever the reason, today, very few organisations can operate to their full potential without moving beyond their domestic operations.

     As experts in expansion, my company is witnessing more and more organisations looking towards global markets. Over the next ten weeks in this blog series, I will be addressing the 10 steps to overseas expansion - setting you on the right path to building your own international business.

Step One: Where Is My Business Now?

     The first step in the journey is to audit your company as it operates presently. Understanding where your business is positioned in its home market will make you aware of the resources you can dedicate to overseas expansion plans. Consider whether cost, operational and timeframe implications of global expansion might detract from your core business.

     Before starting this process, you need to clearly define the goal of the analysis - namely “determining the current health of your business.” Involve any relevant stakeholders in your business to ensure you have all the information you need.

Internal Situation Analysis

     Carry out a comprehensive internal situation analysis of your business or recruit an external company to do this for you. Start with a SWOT analysis – consider the strengths, weaknesses, opportunities and threats of your business. From this, establish any key issues that arise.

     When considering the internal condition of your business, ask yourself the following questions:

Customers: Who is your current customer base? Map your existing customers into segments by their demographics, e.g. age, gender, location – this will help you later when you research whether these segments are present in your potential country of expansion.

Resources: Are your logistical and operational arrangements logical and effective? How many employees do you employ? Are workloads currently manageable? Assess your turnover and profit to determine if resources can be spared – overseas expansion obviously comes with a cost attached.

Product: What is the product niche, and strengths and weaknesses? What is your pricing structure? What is your brand reputation? How do you market yourself at home?

External Situation Analysis

     Give yourself a fuller understanding of the current health of your business by considering the bigger picture. Undertake a PESTLE (political, economic, social, technological, legal and environmental) analysis of the external market conditions you are currently operating within.

     The external analysis can help you identify potential future trends and risks, and implications on your ability to expand internationally. For example, if your home market is saturated with competitors, it might be time to search for an overseas location where there is limited competition and therefore greater potential for your product.

     Think about country-wide demographics to help you understand where your current customer base fits within its home market. Who are your competitors, and where is your product and brand positioned within this?

With this information in mind, you have the foundations in place to confirm that you have the resources available and can start narrowing down strategic locations for your expansion. In the next installment of this series, we look at Step 2 of the process: Deciding Where You Want to Grow.

About the Author

     With over ten years’ experience in Market Research and HR at prestigious Dublin-based organisations, Teresa Lewis is now responsible for developing Mauve’s business in Ireland and supporting operational management when local intervention is required. Her day-to-day role involves prospecting and lead follow-up, assisting local clients on-the-ground and sourcing new expert partners.