Expanding overseas to new markets can be one of the most crucial decisions a business makes. Often, expanding internationally is what can make or break a business. International expansion consists of more than simply setting up shop in a new country. The expansion process must be purposeful and must be prepared for, otherwise the business will see more money being drained through this new exploration than made. The following is a collection of observations and tips regarding challenges in global marketing and expansion.
Brand is bond in the world of business. The first thing we think of when someone mentions a company name is not their most recent financial statements or their internal initiatives to cut costs or boost R&D. The first thought is of the brand that company has built. Take for example, Nike. When someone mentions Nike, by and large it conjures images of cutting edge athletic wear and oozes cool. It is clear that brand is crucial to a company’s success, and while scores of other factors go into success with international business, one of the key components is building a global brand. You don’t want, however, to automatically assume that one broad brand for the entire world will be the perfect strategy for your particular company. Instead, in most cases it makes much more sense to approach different markets in varying ways.
In a blog post for Cisco, EMEA & Russia marketing director Dr. Christine Bailey explained the omnipresence of digital marketing in the current business landscape: "we’re no longer doing ‘Digital’ Marketing, we’re simply marketing in a digital world." In other words, the appellation 'digital marketing' has become unnecessary; the world is so thoroughly digitized that all corporate marketing actions must align with digital spaces, not just run parallel to them. To be a successful global business in the 21st century, competent utilization of digital platforms is essential. This means not only a complete understanding of analysis and content strategy principles, but awareness of these concepts as they pertain to countries the world over.
This week, the globalEDGE blog is taking a look at international marketing and its implications for businesses, in a five part series. For companies conducting business in several countries, a strong marketing strategy can be extremely beneficial, connecting the brand with ideas about the company, such as trust or innovation. An effective strategy can bring about cost savings and introduce competitive advantages, which can be crucial for a company attempting to move into new markets.
Two of the world's most valuable technology companies, Facebook and Alphabet (by means of its subsidiary Google), are working with TE Subsea Communications (TE SubCom) and Pacific Light Data Communication (PLDC, a subsidiary of China Soft Power Technology) to construct the world's fastest trans-Pacific submarine cable. The 12,800 kilometer (8,000 miles) submarine cable will enable a speed of 120 Terabits per second and connect the United States and China by way of two major cities: Los Angeles and Hong Kong (where PLDC is based). The cable, known as the Pacific Light Cable Network (PLCN), will utilize fiber-optic technology to create the fastest possible telecommunication channel, covering twice the speed of the current-fastest undersea cable. The goal of the PLCN is to increase bandwidth and reduce connection delays in the Asia-Pacific region. According to Google, the cable should be built and functioning by 2018.
Global economic growth has been held back in recent times and many factors play into this; however, political uncertainty has been at the forefront. Unpredictable political outcomes, such as the general election season in the world, instability in the Middle East, the Brexit, and China’s leadership reshuffle, have created considerable doubt and uncertainty in global markets.
With the economic struggles of many emerging markets, Indonesia has been one of the few bright spots. The economy is expected to meet expectations and grow 5% this year, the fourth highest rate among emerging markets. The fact that Indonesia has been able to keep its economy growing is impressive, especially with the many outside factors that have significantly impacted other emerging markets.
The economic impact of natural disasters can be witnessed on a global scale. These disasters often set in motion a variety of chain reactions, negatively impacting and in some cases decimating sectors of the global economy. "In 2014, 72 percent of global losses classified as "disasters" were caused by extreme weather events: hailstorms in Europe, drought and severe winter weather in the U.S., hurricane damage in Mexico to typhoon damage in the Philippines, and disastrous flooding in the U.K., India, Pakistan, and Afghanistan."
These are some of the most infamous natural disasters with respect to their economic repercussions:
Earlier this month on October 5th, Brazil’s congress approved the key points of a polarizing bill, which would allow foreign investment in the nation's offshore oil fields. The bill overturns parts of a 2010 bill which was aimed at increasing government control over the lucrative oil fields. This law mandated that the state-run oil company, Petrobras, be the lead operator and hold a minimum of a 30% stake in any offshore drilling operations in so-called “pre-salt” fields.
The Paris Agreement focusing on the reduction of emissions and overall achievement of climate neutrality has initiated efforts to reduce carbon emissions throughout the aviation industry. Airlines are one of the major emitters of carbon dioxide, and air travel is forecast to double by 2030. However, aviation had not been included in the agreement until now.