Growing Your Business in a Weak
Economy
Rogelio Douglas - October
2008
It's a
common practice for small and
medium companies to first gain
traction (a firm customer base)
at home before even thinking
about international business.
This is a sound strategy
particularly when the company
has little or no knowledge of
the international market and
the limited marketing budget
might possibly produce a much
higher return locally. However,
when the local economy is flat,
or worse is in decline, foreign
markets may be the safest bet
for growing sales and by
extension directly improving
the US foreign trade
picture.
In the mid 1990s when the
internet concept had been
proven and many countries began
to seriously consider possible
national benefits, a US-based
start-up company took the first
version of their internet
networking product to South
Korea and convinced the local
telephone company to try it.
After several months of field
trials, technology application
education, and numerous market
impact presentations and
proposals, a project was
financed and rolled out in
phases.
Today South Korea is recognized
as the world's leader in
broadband access to the
internet with the highest
speeds, lowest costs, and
highest internet user rate --
estimated at 75% of the
population. For the first
couple years this Southern
California start-up had a
disproportionate amount of
their sales in a country
smaller than one-quarter the
size of California on the other
side of the Pacific. And within
five years this company had a
global presence with offices
and business partners in five
continents and sales of over
$350M.
The core elements of success in
establishing a global presence
in this case were having a
clear vision, establishing
strong local business contacts
and partners, and a strong team
of experienced and motivated
sales and marketing
professionals who shared the
vision. However, every journey
begins with the first step, and
if the short-term potential of
the local market is
unsatisfactory then maybe a
strategic focus on a key
foreign market with more
attractive conditions is a
better way to go.
Source:
http://www.gbdusa.net
Back to
Top
|
.gif)
