If you are a business owner, you can definitely understand that operating in a local market is significantly different from running your business in a global environment. Global market is the place where you can find more opportunities, but also, more challenges at the same time. Usually when the local market becomes highly saturated, the local cost of manufacturing is boosted to unbearable extent, or when highly profitable opportunities are clearly seen in the international markets, businesses like to opt for crossing the borders and expanding their operations.
However, in reality, the challenges are even more severe in global market. These challenges must be analyzed before entering this market. Similarly, the techniques for overcoming these challenges also differ from those you normally adopt, while conducting business within your own geographical territories. Let’s have a look some of the most dominating challenges and most suitable and possible approaches in order to face them. These challenges include:
- Huge foreign indebtedness
- Unstable governments
- Foreign exchange problems
- Government bureaucracy
- Tariffs and other trade barriers
- Corruption
- Technological pirating
- Security problems
- Giant competitors
The only solution, according to most of the experts, is that those who offer superior quality in the global market win the race. The global market is characterized by giant market leaders; hence your approach must be very offensive instead of defensive. This you can achieve in terms of utilizing higher technologies, offering higher quality and competitive pricing. For this purpose, the most crucial decisions which will help you in the long run include:
- Deciding to go international
- Deciding the markets to enter
- Evaluating the selected economies
- Deciding marketing programs
- Deciding your course of action
Mostly, you must go for the economies that are expected to offer you some good return on investment. The growing economies where there is a space for new brands, where people have satisfactory purchasing power and acceptance for new products are the best economies from customers’ perspective. Similarly, the marketing strategies are also designed according to the results of the economic evaluation. In fact you must try to narrow down your marketing efforts by analyzing the specific characteristics of your target group. Obviously these are the individuals who will most likely become your customers. Then the course of action includes all the strategies that pertain to your organization’s inner structure and functioning, which you have to tailor in accordance with global market standards.
