The goal of every enterprise is to maximize profit and minimize cost. In recent times, one effective way to do this is globalization. This is the expansion of a business into new countries to reduce production costs. There is a free flow of capital and access to wider labor markets through free trade across multiple countries.
Globalization means that all businesses need to focus on their strengths more than ever before. With a larger pool of competitors, organizations have to focus on products and services they have an advantage in. Maximizing areas where they can produce with the least resources to rival businesses. This automatically means that companies have to increase research and development intensity to attain such specialization.
Innovation has driven new technologies, capital-output, and made businesses more productive. This drive for specialization has also increased the need for innovation to stay ahead of the competition. With such a world-view, companies have to do better in managing the working conditions of employees, seeing as the competition is now on a global scale to keep the best talents. Here’s why you should consider taking your business global.
1. Entry to New Markets
Taking your business globally can afford you access to a new market. You can grow your customer base and increase your profit margin. Globalization can be very profitable by carrying out proper market research and having a unique value proposition. One of the most significant leverages of going global is technology.
With technology, you can communicate easily and eliminate travel costs. The entry barrier has never been lower with the right software at your disposal. You can run a company remotely in today’s age and time. Technology can facilitate everything from meetings to pitchings, closing, networking, and partnerships.
It is not enough to be excited about the possibilities of a new market and rush in. Remember how we talked about specialization earlier? What gives your business the edge in its new terrain? The importance of due diligence—market segmentation, gap, and SWOT analysis cannot be overstated.
2. Benefit From Global Talent Acquisition
Global talent acquisition helps organizations improve the quality of their hire. With new markets comes a new pool of talent to choose from. International talent offers better diversity and cultural literacy that aids innovation. It is easier for your team to access different perspectives in real-time and make better-informed decisions with a diverse group.
Global recruitment means your team needs to have a standardized onboarding process that improves your brand image. Your team is better equipped to source talent with the requisite skills to deliver on the job. Global talent acquisition also helps teams leverage remote work and improve their productivity. Hiring internationally also means you will equip your team to understand foreign market expectations and local customs.
With remote work being the new norm, forward-thinking organizations need to consider global talent mobility. More people are imbibing a global mindset and are willing to move for better opportunities. People are more inclined to live where their goals and values align with a preferred culture and opportunities. So why shouldn’t a business adapt to the times?
3. Benefits From Multicultural Globalization
The more the world becomes flat through globalization, the more opportunities are open to businesses. The increasing interaction of intellectual people across diverse cultures has increased profit flow for businesses. In this era of the knowledge economy, companies can package knowledge as a digital product and sell it. Thought leaders are becoming sought after to be the face of brands.
Research shows that diversity drives up revenue by increasing creativity. Diverse teams are 87 percent better at deciding and have a 70 percent probability of capturing a new market. Leveraging modern communication such as live conferencing has bridged the communication barrier. International calling has made it possible for businesses to thrive globally with minimal resources.
Businesses no longer have to incur avoidable costs such as travel and accommodation. Companies can leverage pay-as-you-go plans or enjoy unlimited international calls based on their needs. Teleconferencing grants you access to a global pool of intellectuals from different cultures at cheaper rates than traveling.
4. Create a Better Brand Image
Have you wondered why brands like Apple, Coca-Cola, and Nike are so popular? They have been able to tap into a global market and build mind share internationally. Globalization offers businesses a unique opportunity to grow their business credibility. You can gradually build a loyal fan base with excellent customer service and research
By building a better brand image, you stand a better chance of converting first-time buyers to repeat customers, guaranteeing the long-term success of your business. To grow your brand image, you need to understand your market, the gaps, and the customers’ needs and develop a market strategy that solves that need. All these while compellingly telling your story.
Roses and Prickles
One appeal of business is to conquer multiple markets. As with all ventures, there are difficulties. But to harvest the roses, you must avoid the prickles.
The beauty of a business is surmounting challenges as they pop up. One of the biggest challenges of globalization is the cultural barrier. But with an effective consulting strategy that includes international calling, you should be ready.
