Global expansion often becomes a pivotal step when your products have begun to shine beyond the boundaries of your local market. Take Apple, for example; after dominating the U.S. landscape with its innovative offerings, the company set its sights on the vibrant streets of Tokyo in 2003, marking the beginning of its international journey.
Beyond obvious motivations of profit and growth, business survival is a subtler motivation for expansion. Even the most successful companies risk becoming obsolete if they fail to scale. Survival makes expansion more of a necessity for founders aiming to build enduring legacies, but just because expansion is natural and unavoidable doesn’t mean it is a simple process.
Both new and experienced founders have blundered through the process by unconsciously assuming that urgency and inevitability make it failure-proof.
Their assumption may not be entirely unfounded; sometimes, there are early signals that the international markets demand your product. These signals often emerge organically through outright requests and unsolicited testimonials from users that validate your products as a good fit for those markets. When Amazon expanded to the UK and Germany, the earliest signs of scaling internationally came from consistent, measurable market demand.
At times when every signal suggests international success, and it’s time to expand, it’s often tempting but dangerous to replicate your local success in the new terrain. However, environments vary significantly, and these differences make model replication impossible.
So, if replication isn’t the answer, what is? This is where adaptation and reinvention come in. Instead of replicating your existing model, you adapt. Adaptation takes into account the material differences between local terrain and international destinations, customizing the model to fit the economic, cultural, legal, and operational realities of each new market. The promising signals suggest the environment is viable, but needs to be tested against the standards of the new environment and not based on your local indices.
In other words, global expansion demands strategic planning. Many founders who rushed to scale did so in the wrong direction. Beyond showing you where to expand, strategic planning shows you how and when to execute. However, when you move with strategy, you establish credibility sooner and plant a reliable reputation that sustains your local success.
Why plan?
Global expansion is, therefore, not just about mere presence but integrating the legal and economic realities of the new destination to ensure you survive and thrive. Strategic planning investigates what makes every market peculiar, it pinpoints every detail and questions how it could impact the business.
There are popular characteristics of every market that can impact the business:
Culture: The cultural differences between the USA and Japan for example are greater than the distance between the two countries. Imagine you are a local success in the US and want to expand to Japan. In this scenario, planning gives you a grasp of Japanese culture and its impact on your business. With this information, you can reinvent your model to prevent cultural conflicts. McDonald’s, for instance, localizes its menus and campaigns, offering vegetarian options like the Veg Maharaja Mac in India.
Law: One of the popular market characteristics that planning dig up are the laws that could crumble your operation. Since you cannot change the existing laws of any country, you can decide how to adapt or reinvent your business to expand within those laws. Apple, for example, had to abandon its signature Lightning connector to comply with EU USB-C regulations.
When planning for globally expansion, it’s crucial to view it as a risk assessment and management strategy. If you’ve begun expanding without proper planning, you may face challenges highlighting differences between your local economy and the international market, such as logistics issues or the need for a profitable pricing model.
To survive and thrive internationally, to recreate your local credibility, to claim a spot on Forbes, and to build a business legacy that outlives you, you must plan your expansion process strategically. You must accept that the process is not a simple replication but meticulous adaptation and reinvention. Planning is not an option but a necessary and guided process crucial for your recovery and growth.
Global Expansion is a Guided Process
The point of founders moving fast is to win and dominate the market. However, with thorough planning, your expansion will become more effective. Therefore, more than moving fast, choose to move smart. Getting help from a guide is the most innovative way to skip the pitfalls of expansion.
A guide narrows your chances of failure by leading you through the rigorous process of assessing, adapting, or reinventing your business to suit the new environment. A guide helps you navigate the actions that give expansion structure. Some of these actions include:
Market research: Although early signals may not be false, you still need to research the market deeply to determine the volume of potential demand. What is the market size? Who are your local competitors? A guide will help you find answers and concrete data you can use.
Getting the right partner: You need a partner who understands the local market, and finding the right one is not always just a phone call away. A guide helps you determine the right partner for your business.
Hiring a team: A guide can help you determine whether partnerships or direct hiring are best for your business.
Personalize your products to the new market: What appeals to the typical consumer of your products in the new market? Customizing your offer is one area where having the right partner comes in handy. A professional guide will help you assess and avoid the pitfalls of customizing your offers.
There are more things that make each market unique, and getting a professional guide is your best bet for navigating all the details.
In conclusion, before entering a new market, define your objectives, validate demand with real data, and ensure your business model is locally viable. Identify legal requirements early, assess logistics and cost structures, and get cultural & local insight before launch. Expansion works best when approached as a calculated business decision.
Arum is an International Business Growth Strategist and Consultant. She writes from Beaune, France.