The benefits and challenges of international expansion posted 12/11/2014 by crestmark bank many successful businesses in the us turn their eyes overseas for new markets in which to grow their company, their client base and their finances. Globalization has been a major development in the early 21st century, as companies are taking advantage of opportunities to grow beyond domestic borders. Benefits of global expansion expanding globally gives your company an opportunity to move to greater heights with regards to profitability companies or businesses that operate on a global scale can expand their market by offering their products to international consumers.
Business expansion has potential benefits and drawbacks some owners are reluctant to take the risk of growing the business and opt to stay small benefits of a growing business. In most countries of the world, international trade represents an important share of the gross domestic product in considering alternatives to grow your company, it will be worth investigating this accelerating trend which is the outcome of increasing industrialization, transportation and communication tools. Capturing the benefits and mitigating the challenges associated with each will require global companies to explore new ways of organizing and operating about the author(s) martin dewhurst is a director in mckinsey's london office, where suzanne heywood is a principal jon harris is a director in the new york office.
For businesses that face difficulties preventing the expansion of domestic operations such as an oversaturated market or lack of demand for the product, a logical step for business growth would be to journey abroad to seek out alternative opportunities through overseas expansion. When working with companies overseas, both you and your customer will want to execute the transaction in the safest and most efficient manner possible one of the many advantages when trading internationally is that overseas payers often pay upfront. Canadian companies are extending their reach globally more than ever whether they are exploring for oil and gas in a remote corner of the planet or looking for more economical manufacturing. The case for growth: gaining a business advantage from expansion 1 build a family dynasty and grow community self-sufficiency family pride, job relevance for family members, and building a business dynasty for not just your family, but for other families in your community as well, are a great reason for growth. In reality, however, most companies offer some or all of these benefits to stay competitive most employers provide paid holidays for new year's, memorial day, independence day, labor day and.
The company can withstand most surprises the market sends its way how to apply this: seek out business partners who have complementary interests and a good infrastructure already in place see if you can start a new line of offerings that benefit both companies and diversity your customer base. Companies also can utilize international markets to introduce unique products and services, which can help maintain a positive revenue stream coca-cola is an example of a company that diversifies. An employee benefits package includes all the non-wage benefits, like insurance and paid time off, provided by an employer there are some types of employee benefits that are mandated by law, including minimum wage, overtime, leave under the family medical leave act, unemployment, and workers compensation and disability.
International expansion in a company is when a business takes the borders of their market outside of the country in which it was originally established international expansion for a business is. About the research to understand how companies develop sources of competitive advantage through their global strategy, we conducted in-depth analyses of 50 american, european, latin american and asian companies. Business expansion can pose problems for companies that are not ready for the challenges of growth it is essential that the company, while expanding, view successful expansion on a profitability.
The company's toiletries line includes gillette foamy, dry idea and right guard, while its writing instruments line consists of paper mate and flair this gives gillette a wide product mix. Companies go international for a variety of reasons but the typical goal is company growth or expansion when a company hires international employees or searches for new markets abroad, an. Benefits of business expansion 3 comments 16,281 views depending on the growth of the economy and certain specific factors involving the company, business expansion can serve as a very profitable option if done at the right place at the right time.