{"id":194,"date":"2024-07-01T20:28:35","date_gmt":"2024-07-01T13:58:35","guid":{"rendered":"https:\/\/artemis-bc.com\/?post_type=blog&p=194"},"modified":"2024-07-01T20:28:36","modified_gmt":"2024-07-01T13:58:36","slug":"international-expansion-of-smes-in-4-songs-you-need-to-know-by-axel-johansson","status":"publish","type":"blog","link":"https:\/\/artemis-bc.com\/fr\/blog\/international-expansion-of-smes-in-4-songs-you-need-to-know-by-axel-johansson\/","title":{"rendered":"INTERNATIONAL EXPANSION OF SMEs IN 4 SONGS – \u201cYou need to know\u201d by Axel Johansson"},"content":{"rendered":"

If you\u2019re a SME, you already know how complex and challenging an international development can be. In previous articles we\u2019ve seen that the success rate of such an enterprise is very low in average, and we\u2019ve seen that even large international groups are not exempt from failing from time to time.<\/p>\n\n\n\n

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So, after reading this grim portrait of the hard world of international development for SMEs, you may come to a point where you ask yourself: \u201cWhy bother?<\/em>\u201d. Why indeed? Well, because when properly done and successful, developing your business in a new market is highly rewarding and profitable.<\/p>\n\n\n\n

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Like Axel Johansson You need to know<\/a> that “you are not alone<\/em>“, that “there’s hope right by your side<\/em>“, and that international development remains the best key to ensure your growth in the long run. So:<\/p>\n\n\n\n

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“Hold your head up high,
Never give up and keep aiming for the sky,
And when darkness finds a way to tear you down,
Take a closer look, there’s hope right by your side<\/em>“<\/p>\n\n\n\n

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Indeed, for every story of failed expansion, there is also an example of success. Just take a look of the following case studies, which each offers useful insights about how to develop your business in a new market.<\/p>\n\n\n\n

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Some success stories of international development<\/strong><\/p>\n\n\n\n

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1- McDonald\u2019s<\/strong> is one of the most emblematic successful expansions. While they sometimes faced challenges in some markets like India for reasons that I explained in my previous article, they also have learned quickly from their mistakes by adapting their products to all local markets. To convince yourself, you simply have to order a blue cheese burger in one of their branches in France. Their success can also be explained by the local partnerships they have set up to source their products locally and to navigate the specific dynamics of each market.<\/p>\n\n\n\n

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2- A different model of international success is Coca Cola<\/strong>. While they always maintained their global branding associated with the American dream and culture, they have massively invested in marketing and advertising campaigns to tailor their communication to fit local cultures, as well as in distribution networks to ensure that their products can be available all around the world.<\/p>\n\n\n\n

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3- The takeway service Just Eat <\/strong>offers another example of success story, which demonstrates the importance of meticulous market research and strategic partnerships. Indeed, before entering a new market, Just Eat conducts thorough research to understand consumer preferences and foodservice landscapes. They then partner with local restaurants, ensuring a wider selection and faster delivery times for customers. This data-driven approach and focus on building strong local partnerships have been instrumental in their successful international expansion.<\/p>\n\n\n\n

And there are many more examples out there, proving that taking your business to new market is a beneficial and worthy endeavour. As long as you follow specific steps to prepare your journey and to embark in your adventure in the right conditions.<\/p>\n\n\n\n

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The \u201cRumsfeldisation\u201d of your international expansion<\/strong><\/p>\n\n\n\n

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If 25 years of experience in international trade in 3 different regions taught me anything is that \u201cChance favours the prepared<\/em>\u201d. It is sometimes easy to forget, in our globalised world, that each market is different and presents specificities that you need to take into consideration. You cannot simply rush into a new market applying the same method everywhere and expecting the same results. This means that anticipation and preparation are paramount.<\/p>\n\n\n\n

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Now, let\u2019s forget about the context in which Donald Rumsfeld made his famous comment in 2002, and apply it to our topic: \u201cthere are known knowns; there are things we know we know. We also know there are known unknowns; that is to say we know there are some things we do not know. But there are also unknown unknowns\u2014the ones we don’t know we don’t know. And (\u2026) it is the latter category that tends to be the difficult ones.<\/em>\u201d<\/p>\n\n\n\n

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It may sound muddled, but it is actually a good summary of what companies should consider when preparing their international development strategy. Here below is how we can organise this in a simple table:<\/p>\n\n\n\n

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Known knowns<\/strong><\/td>Unknown knowns<\/strong><\/td><\/tr>
It includes what you already know for sure about your company, your market, and so on.<\/td>These are things that you forgot that you knew or that you think may not be relevant, but which is actually useful and important. It may be technical know-how, internal resources, contacts, unused data, and so on.<\/td><\/tr>
Known unknowns<\/strong><\/td>Unknown unknowns<\/strong><\/td><\/tr>
This is what you have identified as missing information, being aware that you need to do some research on it. These include the usual topics that all companies consider when preparing their expansion: legal framework, market study, competition, taxes, and so on.<\/td>These are the things that you don\u2019t even know exist. Which means that you have not even considered doing research on these topics, since you are not aware of the gap in your knowledge. These could include matters vital for the success of your international expansion related local culture and preferences, for example.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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Each of these categories requires separate and specific steps in your preparation to fill the gaps in your knowledge and gather all the necessary information. Some may be taken internally, some definitively require external expertise, especially those in the \u201cunknowns\u201d column.<\/p>\n\n\n\n

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So, keeping these 4 categories in mind, what does your company needs to implement to properly prepare its international expansion?<\/p>\n\n\n\n

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1- Define Your Goals and Objectives:<\/strong><\/p>\n\n\n\n

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  1. <\/li>\n<\/ol>\n\n\n\n

    This first internal step directly corresponds to the \u201cknown knowns\u201d. Or at least it should. You should know the financial situation of your company, what is its position on the market, its strengths and weaknesses, its resources, and where you want to take it in the future. It corresponds in a way to your internal diagnosis, to the moment when you ask yourself: should we develop our business on a new market? And if yes, can we and to for which purpose?<\/p>\n\n\n\n

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    Indeed, the foundation of any successful international expansion lies in setting clear and achievable goals. These goals should be aligned with your overall business strategy and take into account the specific opportunities and challenges presented by your target market. Ask yourself:<\/p>\n\n\n\n

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    -What do you hope to achieve by expanding internationally?
    -What are your specific growth targets in terms of market share, revenue, and profitability?
    -How will international expansion contribute to your long-term vision?<\/p>\n\n\n\n

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    By outlining your goals and objectives, you can tailor your strategy and track your progress effectively.<\/p>\n\n\n\n

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    This first step is usually taken internally, but you may request the support of experts to run an internal diagnosis for you.<\/p>\n\n\n\n

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    2- Conduct Comprehensive Market Research:<\/strong><\/p>\n\n\n\n

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    This vital step usually corresponds to the \u201cknown unknowns\u201d. Now that you have identified your goal, your strength and weaknesses, you want to know if the new market that you are considering is the right one for you, by searching for the opportunities and threats that it has to offer.<\/p>\n\n\n\n

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    And as a seasoned professional, you already know what you are looking for, what you don\u2019t know and need to know: the market size, the competitive landscape and place of your competitors, the consumer preferences and local business culture, the regulatory and legal environment, and so on.<\/p>\n\n\n\n

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    You also know that, while there is some information that you gather yourself online or by visiting the country, it is also vital to outsource part of this research work to experts on the grounds who have a deep and hands-in knowledge of the local culture and environment.<\/p>\n\n\n\n

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    3- Develop a Tailored Expansion Strategy:<\/strong><\/p>\n\n\n\n

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    Based on your defined goals and market research findings, you now need to create a comprehensive expansion strategy that outlines the specific actions you will take to achieve success.<\/p>\n\n\n\n

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    This strategy should include:
    <\/p>\n\n\n\n

    -Market entry mode: Deciding how you will enter the market, whether through direct investment, joint ventures, franchising, or other methods.
    -Marketing and sales strategy: Tailoring your marketing approach to the local culture and consumer preferences.
    -Operational plan: Establishing logistics, supply chain management, and human resource strategies for your operations in the new market.
    -Financial forecast: Creating a realistic financial forecast that factors in all potential costs and revenue streams associated with your expansion.<\/p>\n\n\n\n

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    Developing a well-defined strategy provides a roadmap for your international expansion journey and ensures all aspects are considered for a smooth and successful venture. If you don\u2019t have experts in international trade and development in your company, and\/or if it is your first international expansion in a new market, it is recommended to contract an external expert to support you in this step.<\/p>\n\n\n\n

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    4- Secure the Necessary Resources:<\/strong><\/p>\n\n\n\n

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    International development requires sufficient financial resources to cover market research, legal fees, operational costs, marketing campaigns, and potential unforeseen expenses. Secure funding through internal sources, loans, partnerships, or attracting investors based on a clear and compelling business plan.<\/p>\n\n\n\n

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    Additionally, ensure you have the necessary human resources with the required skills, language proficiency, and cultural awareness to operate effectively in your target market. Assembling a competent and diverse team is crucial for success. This team should possess the necessary expertise in your industry, experience in international markets, and a deep understanding of the local culture and business environment. Consider recruiting local talent to gain valuable insights and bridge the gap between your company and the target market.<\/p>\n\n\n\n

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    Here, with step 4, is where you may encounter first \u201cunknown knowns\u201d because you may not be aware that you possess some valuable resources internally, in terms of expertise, data, team members, and so on, which may prove valuable for your expansion. Including them in your strategy and development plan may allow you to scale down some costs or accelerate your return on investment.<\/p>\n\n\n\n

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    In addition, this is also where you may make lethal mistakes because of \u201cunknown unknowns\u201d. For example, you may decide, like Target in their expansion into Canada, the wrong locations because of local preferences or realities that you don\u2019t know. You may also recruit the wrong employees based on your own criteria influenced by your culture, your environment, your perception, because there are aspects of the local culture and environment that you don\u2019t know. Or you may also underestimate the investment of your expansion, because of hidden costs that only local experts are aware of. Finally, you may run a disastrous marketing campaign, like Pepsi in China, because the international communication agency that you contracted used Google translate or had no understanding of the local cultural symbols and taboos.<\/p>\n\n\n\n

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    In both cases it is highly recommended to hire an expert of the local market who will help you navigate these \u201cunknowns\u201d, so that you avoid making mistakes which may cost you years or millions.<\/p>\n\n\n\n

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    5- Seek Expert Guidance:<\/strong><\/p>\n\n\n\n

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    Partnering with a reputable international business consultancy can significantly increase your chances of success, by having an expert identifying all the \u201cunknowns\u201d for you, and also facilitating the access to the \u201cknown unknowns\u201d that you are looking for.<\/p>\n\n\n\n

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    These consultants possess extensive knowledge and experience navigating the complexities of international expansion, and they can offer valuable guidance and support in areas such as:<\/p>\n\n\n\n

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    -Market research and analysis
    -Cultural sensitivity training
    -Business development and partnership facilitation
    -Support in strategy and coaching
    -Local recruitment and training
    -Regulatory compliance guidance
    -Marketing and sales strategy development<\/p>\n\n\n\n

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    By leveraging the expertise of an experienced consultancy, you can gain access to valuable resources, navigate potential challenges, and achieve your global expansion goals more efficiently.<\/p>\n\n\n\n

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    At Artemis Business Care<\/strong>, we understand the complexities of international development and are here to guide you every step of the way. We offer a comprehensive suite of services<\/a>, tailored to help you overcome the challenges you face and achieve your global aspirations. By choosing us, you will reduce your uncertainty by having someone you know make the \u201cunknown unknows\u201d become \u201cknown knows\u201d, if you know what we mean. You know?<\/p>\n\n\n\n

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    So, don’t wait! Contact Artemis Business Care for more information<\/a>.<\/p>\n\n\n\n

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    <\/div>","protected":false},"excerpt":{"rendered":"

    If you\u2019re a SME, you already know how complex and challenging an international development can be. In previous articles we\u2019ve seen that the success rate of such an enterprise is very low in average, and we\u2019ve seen that even large international groups are not exempt from failing from time to time. So, after reading this […]<\/p>","protected":false},"author":2,"featured_media":205,"menu_order":0,"comment_status":"open","ping_status":"open","template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-194","blog","type-blog","status-publish","format-standard","has-post-thumbnail","hentry"],"yoast_head":"\nINTERNATIONAL EXPANSION OF SMEs IN 4 SONGS - \u201cYou need to know\u201d by Axel Johansson - Artemis<\/title>\n<meta name=\"description\" content=\"Preparing your international development starts with identifying what information you need, including "what you don't know you don't know".\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/artemis-bc.com\/fr\/blog\/international-expansion-of-smes-in-4-songs-you-need-to-know-by-axel-johansson\/\" \/>\n<meta property=\"og:locale\" content=\"fr_FR\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"INTERNATIONAL EXPANSION OF SMEs IN 4 SONGS - \u201cYou need to know\u201d by Axel Johansson - Artemis\" \/>\n<meta property=\"og:description\" content=\"Preparing your international development starts with identifying what information you need, including "what you don't know you don't know".\" \/>\n<meta property=\"og:url\" content=\"https:\/\/artemis-bc.com\/fr\/blog\/international-expansion-of-smes-in-4-songs-you-need-to-know-by-axel-johansson\/\" \/>\n<meta property=\"og:site_name\" content=\"Artemis\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/profile.php?id=61555624242955\" \/>\n<meta property=\"article:modified_time\" content=\"2024-07-01T13:58:36+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/artemis-bc.com\/wp-content\/uploads\/2024\/04\/Banner-article-international-expansion-in-4-songs-4.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"1080\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:site\" content=\"@Artemis_bc2024\" \/>\n<meta name=\"twitter:label1\" content=\"Dur\u00e9e de lecture estim\u00e9e\" \/>\n\t<meta name=\"twitter:data1\" content=\"10 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/artemis-bc.com\/blog\/international-expansion-of-smes-in-4-songs-you-need-to-know-by-axel-johansson\/\",\"url\":\"https:\/\/artemis-bc.com\/blog\/international-expansion-of-smes-in-4-songs-you-need-to-know-by-axel-johansson\/\",\"name\":\"INTERNATIONAL EXPANSION OF SMEs IN 4 SONGS - 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