Avoiding the Common Pitfalls of International Expansion
Bob Nordan, Senior Consultant with the Next Step marketing and strategy consulting group based in Northern California, has written a focused and detailed analysis of why companies should Go Global and why companies often fail when they try to Go Global.
Mr. Nordan says, “Many U.S. companies who are facing revenue struggles at home are being lured by the bright lights of international expansion and the vision of vast untapped markets of consumers or business buyers overseas.’
He goes on to say, “Unfortunately, many will make the same mistakes and suffer the same consequences as those who have gone before - international markets are strewn with failed (first) attempts.”
He gives a number of reasons why companies fail in their international development:
Expansion for the wrong reason
False assumptions about the nature of the international market
Underestimating the operating costs in an international market
Exporting your domestic operations to the local market
Deciding to become a global company too late
Failing to get expert advice
Mr. Nordan finishes by saying, “For international expansion, be cautious, be clear, be patient.”
This is probably the best advice I have heard on this subject in my 36 years of doing international business in over 60 countries.
Read the full text of this very important article at the link on the right side of this page.
