There are many myths and misconceptions about international business strategies that have persisted for a long time. Running an international business brings about different challenges than running a domestic business.
Many people seem to be unaware that international business strategies are worlds apart from domestic business strategies.
So you want to be an international business strategist?
Experts in international business strategies are few and far between.
Even if you are well-versed in best practices for managing your business domestically, there are different factors to consider when promoting your brand outside the domestic market.
Here are the Fundamental Factors of International Business Strategies
An international business comes under the purview of domestic and international laws. The company will have to first adhere to the laws of the local market.
Although local laws, laws of the land where the company originated, are perhaps based in the global context, it is important to take international laws into consideration.
A company cannot resort to a protection of its domestic laws or seek refuge in international laws when the local laws in an international or foreign market are violated.
The adherence has to be at all three levels. Unless a company is a conglomerate, employing a phenomenal workforce and benefitting millions of people, a business will always be taken to task for every serious breach.
Without government backing or preferential treatment, even a minor breach can cause damage.
International business strategies should, therefore, be completely compliant with all prevalent and applicable or relevant laws.
New Market, New Strategy
Companies that plan to build on the success of an existing business or intend to explore an opportunity in a foreign market should be willing to understand the similarities and dissimilarities between markets.
The similarities do not ensure success if strategies are not altered to account for foreign differences.
Real World Example
Commercials airing on primetime television in the United States are different from those broadcast during the primetime shows in the United Kingdom. The European countries, despite their shared history and cultural continuity, have companies engrossed in different business strategies to entice the local audience.
International business strategists must figure out the best way to present a product so the similarities or the dissimilarities between domestic and foreign markets can be exploited.
While the similarities can be a challenge, the dissimilarities can be a boon.
Have you recently expanded your business? Tell us how you adjusted to meet the demands of the international market!