Why should businesses think from a global perspective?
From a global perspective, we are facing nowadays a competitive world full of uncertainties. Therefore, we have to seek innovative ways to differentiate ourselves from competitors more than ever.
In order to do this, it is essential to have a great understanding of what kind of companies are out there. Also, it is important to notice how these serve the same market you are activating in. Most of the time, entrepreneurs make a good identification of this differentiation at a national level. What about global markets, though?
It is easy to understand that when your company's commercial focus is on the local market, you are not concerned with international competitors. However, have you ever thought about how much you can fail within the learning process because of this?
In this article, we will illustrate why local businesses should think globally. The countries in which companies don’t tend to expand that much are more likely to be far behind in terms of innovation. In addition, they also fail to understand how much competitive potential can be developed.
Limited beliefs about internationalization from a global perspective
As we talk to entrepreneurs on a daily basis, we hear all kinds of reasons why they don’t have a perspective on the global market. We have highlighted here some of the most common thoughts during these interactions:
· Internationalization means selling to other countries:
It is very common to associate the word ‘internationalization’ with searching for customers in international markets. This is a recurring confusion with the concept of exports.
In fact, internationalization is much broader than that: it is the act of making something international. In other words, it is a learning cycle that involves studying and adapting within the company itself. This results in generating a level of competitiveness. This has to be sufficient to differentiate oneself not only in new markets but also in the home market.
· Your market is already big enough from a global perspective
There are countries, for example, that have a high GDP. Because of this, a lot of local entrepreneurs think that there is no need to look outside the country. This is something that might keep you behind, as confusion is often made. A high GDP does not necessarily mean that the local market is big enough. Therefore, you are very likely to miss out on targeting an even better group for your product or service.
Some countries still place themselves in an inferior position in comparison to American and some other European companies. They think that everything that comes from outside is better. Because of that, they afraid to look at other countries from the point of view of a potential expansion.
· Observing global markets is a big thing:
We still perceive that exploring international markets is something much more complex than it really is. In addition, we think that it requires huge investments. Of course, exporting is not an extremely simple process. However, with the advancement of technology, it has already become viable for companies of all sizes.
What can we learn from global markets?
Once you understand that implementing this global view in your company is not only possible but also necessary, you may be asking yourself: What exactly do I need to understand and how can it help me?
We will present here some very important ideas that might answer your questions:
· Gain new global perspectives on your market
Analyzing the dynamics of your segment in another country can generate several insights for your company. When we are immersed in our daily reality, we end up looking at our company with ‘the same eyes’. This greatly limits our creative potential.
When you start to analyze, you can explore different international perspectives concerning your product or service. This can bring you more practical insights into how you can solve the problems you might be facing.
Therefore, it is advisable to be curious and understand the positioning of your international competitors. It is also essential to observe how they deliver value to customers and what the differences are between you and them. Furthermore, try to find out how is consumer behavior like in other countries and how you can benefit from applying this knowledge within your company.
· Raise your competitive potential from a global perspective
As mentioned earlier, today you are no longer competing only with companies in your city, state, or country. Some markets are very coveted in general for enterprises all over the world, even though entrepreneurs from there don’t aim to expand internationally.
Thus, it is extremely important to understand and compare yourself with the strongest competitors you have. Not only here, but also in other global regions. By doing so, you will also raise your competitive potential and push yourself to do better.
· Stay one step ahead of your national competitor
It is common for people to follow the way in which more developed global markets function. This can be in terms of the product they consume, in the way they deliver a service, or even in the implementation of internal processes.
It is good to be up to date with these trends and understand if and how it is possible to apply them in them your market. Besides, you can avoid various mistakes made by those who have already gone through the same situation before you.
More than ever, we need to push ourselves to think more opened and understand international markets. This does not necessarily mean that you need to sell out, but that you need to understand different prospects. Also, you should raise your competitive potential to eliminate any type of competitor, no matter if national or international.
Article written by Raluca Draganel