Is It Worth To Expand The Business Into a New Region or Country?
In today’s global economy, almost all companies are trying to expand their businesses all around the world. Its reason is that these companies want to earn more profit by getting excess to the foreign market. With the help of expanding the business into a new region, a company can also get an opportunity for growth and diversification. According to the survey of Wells Fargo, for the long-term growth of a business, it is necessary for us to grow business into a new region or country. Therefore, we can say that it is worthy for us to grow a business into a new region or country. The worth of expanding the business into a new region or country is explained below;
- New markets
According to the report of the US Small Business Administration and assignment help, more than 96% of the world’s consumers are living outside of America. Therefore, if some companies expand their business at the international level, their products can reach to plenty of people. As a result, their sales will be increased. Its best examples are Nike and IBM. These companies have flourished their business outside of America in other European countries. Nowadays, they have almost 170 million consumers from these European countries.
If a company expands itself at the international level, there is a possibility that it can diversify its assets. This is the best technique to save a company from some unfortunate events like the bottom line of the company. By expanding the business at the international level, there is also a possibility that a company can get more fame in a specific country than others. This is also an amazing way to boost up the revenue of a company. The best example of a company that is diversified in all around the world is Coca Cola. Now, this company has also bought a Topo Chico water brand in order to diversify its brand.
- Access to talent
After flourishing the business at the international level, there is a possibility that a company can get access to new talent pools. There is also a possibility that a company can get the labour and other workers at lower costs than his own country. As a result, it will be able for a company to create the best quality products with the lowest expenditures. This is the best way to boost up the revenue of a company. There is also a possibility that international workers can bring some positive advancement in a company.
- Competitive advantage
After flourishing their business at the international level, the companies can get a competitive advantage over the other companies. For example, if a company has launched its products in a specific country in which his competitor has not launched his products, this will provide the best opportunity to this company to provide awareness to the consumers about its brands. By expanding business at the international level, a company can get access to new technologies and industry ecosystems. This is the best way to improve the operation of a company in an innovative way.
About the author:
Jacob Oram is a research writer affiliated with a dissertation writing service provider company. He helps and guides students in writing, editing their academic writing tasks. He also writes on social issues, problems of youth and other topics of his interests in his free time.