Global Expansion strategies generally include a company’s plan to expand the operations into other countries around the globe. Global expansion strategies generally involve spreading the business to several countries on major continents. There are several strategies used by companies for global expansion process which generally include exporting, licensing and formation of strategic partnerships.
Exporting and Licensing for Global Expansion
Exporting of finished or semi finished products to different countries are the starting point of global expansion strategies. Exporting have several advantages like introducing the brands of products in other nations without much investment made in the foreign country. Business concerns which are offering services instead of products will find the exporting strategies more challenging due to the competition involved in internet marketing. Certain countries give licenses to foreign companies for selling products which is having lesser risks than exporting. Exporting and licensing alone should not be the sole strategies for global expansion process.
Partnerships as part of Global Expansion
Usually, strategic partnerships with business concerns over foreign countries help companies for taking advantages through an experience of experts in the foreign market. Partnership with international entities also helps in taking advantage of brand equity for the introduction of foreign products which is already having credibility. Distributing products to the foreign market exclusively by companies is also possible with partnerships.