Show Learning CenterAbout Localization Expanding a business across international borders looks different based on your goals and business model. An international strategy prioritizes centralized operations that makes companies like Moet and Chandon, Porsche, Red Bull, and Netflix so successful. What’s your competitive advantage? It’s one of the fundamental tenets of a powerful business strategy. For multinational companies, it’s what separates your brand from others in increasingly crowded markets. Traditionally, this meant producing goods more cheaply or efficiently. In today’s ecommerce- and software-dominated world, though, your competitive advantage is just as likely to come from your leadership, marketing, and international strategy. In this post, we’ll explore the different types of global strategies businesses can choose and the pros and cons of international strategy, often known as the exporting strategy. Check Out Smartling's Ultimate Guide to Global ExpansionWhat Is an International Strategy?Any company that ships worldwide or provides services to consumers or businesses in other countries is considered a global company. An international strategy is usually the first approach most businesses take with global expansion: exporting or importing goods and services while maintaining a head office or offices in their home country. Global expansion as a business doesn’t have a one-size-fits-all approach. As companies grow and scale, they may choose to invest more in their target markets. In fact, companies choose from a variety of models, including:
Companies don’t often choose one model forever. What may start as an international strategy can morph into a transnational or multi-domestic one. What International Business Strategies Look Like in PracticeAny international business strategy balances two sides of one graph:
An international strategy ranks low on both global integration and local responsiveness since it’s essentially an extension of a business’ domestic strategy. With this model, international businesses operate with a central or head office. Rather than use subsidiaries or local branches, an international business keeps a head office in one location, usually their home market. This organizational structure means that there is one center of operations and brand and little to no infrastructure investment in other countries. Choosing an international business strategy gives you several advantages:
However, there are some trade-offs companies make by pursuing an export-driven strategy:
Regardless of these challenges, an international strategy is by far the most popular for businesses, especially as they take their first steps toward globalization and international expansion to different countries. If you’re not sure how your products will respond to different markets, or just want to test it out, following the export model is the safest option. The Power of International MarketingOne of the biggest challenges for international businesses is driving demand and awareness in local markets. Because these businesses are less embedded in local customs or languages, it can be difficult to know how to appeal to these consumers. That’s why the most successful international businesses invest heavily in marketing, rather than infrastructure, so they can scale without needing to be on the ground in a foreign market. With a centralized model, headquarters maintains tight control of product and branding, making it easy for one consistent message across multiple countries. As you expand, a strong localization strategy — ensuring that your message and marketing sounds and feels the same across multiple markets, regardless of language — is what makes international marketing so powerful. We’ll dive into specific examples of international businesses in a moment, but consider one of the best general examples of international marketing at work: regional and country-specific items. There’s a reason why French Champagne is the celebratory sparkling wine people turn to, even with plenty of alternatives from other countries or regions. And why speed-obsessed car lovers only buy from Italian companies like Ferrari. Regardless of the specific brand, the idea that the best sparkling wine or the fastest car can only come from one place is what’s going to make the international business model work. To expand globally in this way, you must find a gap that can’t be already found in that market — and build trust that you’re the only brand that can fill that gap. Implement a Solid International Strategy with SmartlingThe good news? While localization and translation may seem like the most daunting aspects of an international business strategy, they don’t have to be. Smartling offers a world-class translation software solution built for you, however you plan to scale your business. You can professionally translate and localize all of your content across devices and platforms without sending a single email, touching any button, or managing strings in spreadsheets...no matter how many markets you choose to enter. See what Smartling can do for you. https://www.smartling.com/software/ 5 International Strategy ExamplesA successful international business model focuses on a single point of operations while exporting products and services around the world. While not every global business looks exactly the same, in practice, it means international businesses must take a big-picture, standardized approach to their exports and imports, even as their operations remain small. Take five of these successful global brands:
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