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Best Countries For International Market Expansion

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Going into international markets is not as difficult as it seems at first glance if you plan sensibly your entry into foreign countries and invest only when you have tested your chances of success.

The three main questions you need to answer are:

1) When to ‘go international’?
2) Where to go?
3) How to go?

Published in: Sales
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Best Countries For International Market Expansion

  1. 1. 5/8/16PRIVATE & CONFIDENTIAL http://salesforceeurope.com/ Basic Principles for Expansion Selecting the Best Countries for International Market Expansion
  2. 2. 5/8/16PRIVATE & CONFIDENTIAL http://salesforceeurope.com/ Basic Principles When -as a small/medium business- you start reaching saturation in your local market, it is time to plan expanding abroad to generate further growth. The alternative -further investing in R&D to expand your product into new applications- soon faces barriers of saturation, competition and complexity and it can therefore prove more costly. Going into international markets is not as difficult as it seems at first glance if you plan sensibly your entry into foreign countries and invest only when you have tested your chances of success. The three main questions you need to answer are: 1) When to ‘go international’? 2) Where to go? 3) How to go? 2
  3. 3. 5/8/16PRIVATE & CONFIDENTIAL http://salesforceeurope.com/ When: Domestic Success You are ready for international once you have achieved initial success in your home market and have a proven offering with a solid differentiation; ‘happy’ clients as references; established operational processes; and tested effective sales and marketing tools. 3
  4. 4. 5/8/16PRIVATE & CONFIDENTIAL http://salesforceeurope.com/ When: Going International 4 • You also need commitment from your management and investors; buy- in, communication and participation at all levels; clear objectives for international team; international investment budget per department; clear roles & responsibilities for the home team. • Your offer needs to be properly productized, packaged, priced and localized for the target markets.
  5. 5. 5/8/16PRIVATE & CONFIDENTIAL http://salesforceeurope.com/ Where: What to Consider • Determining the ‘right’ foreign countries depends on many factors including the size of the potential market; the strength of the local competition; the distance from your home location (time zones matter); and cultural considerations such as language, business customs and openness to foreign suppliers. • Neighboring countries can be a reasonable first step but you could by hampered by regional rivalries, historical bones of contention and, merely, the lack of potential growth. 5
  6. 6. 5/8/16PRIVATE & CONFIDENTIAL http://salesforceeurope.com/ Where: Large Countries vs. Small Countries 6 • Large countries such as -in Europe- Germany, France, Britain, Italy and Spain represent a priori a large potential but you could face intense competition and high entry costs (e.g. translation of all documents into local language). • Smaller countries such as -in Europe- Finland, Sweden, Norway, Denmark, the Netherlands, Belgium, Switzerland and Austria are usually more open to international trade (by necessity) and relatively easier to penetrate. Many of them are comfortable with English and require significantly lower entry investments. • Ultimately, since your business (and, hopefully, your offering) is different from all the others, the best way to select the right markets is to test different countries for a period of three to six month, refine your ‘pitch’ and invest in the ones with the best practical potential.
  7. 7. 5/8/16PRIVATE & CONFIDENTIAL http://salesforceeurope.com/ How: Starting Quickly and Minimizing Risk When in fact international business development requires a local presence, you don’t necessarily have to establish a local subsidiary with all the costs and risks that such a major commitment represents. Instead of hiring permanent local employees, you can outsource sales to well qualified representatives, starting quickly on a small basis and grow. Specialized sales outsourcing companies such as Sales Force Europe can offer you representatives with suitable experience in all major countries. 7
  8. 8. 5/8/16PRIVATE & CONFIDENTIAL http://salesforceeurope.com/ How: Sales Outsourcing and Partnerships If you offer complex products or services, you also need, in addition to sales representatives, local partner organizations able to perform technical tasks including installation, maintenance, support and other specialized jobs. In the high-tech sector, such organizations are local System Integrators, Service Providers, Distributors, Value-Added Resellers or similar companies. More on this in our previous article: http://salesforceeurope.com/outsourcing-sales-to- international-partners/ The rewards of sales outsourcing and partnering with local organizations are the creation of a productive long-term relationship and the development of solid international foundations. 8
  9. 9. 5/8/16PRIVATE & CONFIDENTIAL http://salesforceeurope.com/ About Sales Force Europe SFE has helped over 200 technology companies expand to international markets. With over 75 active Sales and Marketing professionals, SFE’s mission is to help high-tech companies rapidly and profitably launch, develop and expand their business – without the costs, risks and delays associated with opening foreign offices and hiring local employees. We work as on-demand sales professionals who represent your brand in- country, blend into your company culture, and use our local market knowledge and sales contacts to make revenues manifest quickly. We work in 27 countries and 14 languages throughout Europe and beyond. To learn more about SFE visit www.salesforceeurope.com. 9
  10. 10. 5/8/16PRIVATE & CONFIDENTIAL http://salesforceeurope.com/Copyright© Sales Force Europe 2014 Sales Force Europe Fastest Way to Scale Tech Sales RickPizzoli@SalesForceEurope.com www.SalesForceEurope.com www.linkedin.com/in/rickpizzoli EU Mobile +34 659 449 202 Skype rpizzoli

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