05 Aug, 2016 Category Business,

Expand Business Internationally

Entering and sustaining a powerful presence on international platform is not as easy as shipping your products overseas and expecting the sales to flow in. There are so many things and strategies to consider before advertising and selling in a foreign country. There arenumerous strategies an organization can decide from to expand internationally such as, forming a joint venture, exporting, or acquiring a companyetc. The benefits and failures linked with every strategy are dependent on factors, such as the type of your service orproduct, the support needed, and political, financial, cultural andcommercial environment you are aspiringto penetrate.The strategy that will work best for your business dependsupon the amount of resources, dedication, and risk your organization is willing to take.

Joint Venture is a mutual business project undertaken by two or more organizations looking for business expansion, where each of the participating organization allocates resources, delegates responsibilities, consigns potential rewards and risks while maintaining autonomy. Once the project is completed, the joint venture is generally disbanded except in the case of along-term association such as a permanent production programme.

A joint venture on international level allows an organization to create anadvertising or manufacturing presence in the foreign market with the help of a local overseascollaborator. The collaboratorcould provide knowledge about government regulations, operations, local markets and distribution expertise, which can be important to you in foreign territory.

Benefits of establishing a Joint Venture:

  1. Provide an opportunity to gain expertise and experience
  2. Provide admittance into foreign markets.
  3. Allow to accessinterconnected businesses or explore unfamiliar geographic markets 
  4. Achievelatest technological awareness
  5. Right to usesuperior resources such asexpert staff and machinery
  6. Share risks with your venture collaborator
  7. Allow flexibility where you can limit yourobligation and business' publicity.
  8. Offer a creative approach to expand your mainstay businesses.
  9. Allow to disband a service or product from your organisation and sell it to other participating companies. This will help in generating revenues.
  10. Help cut costs of business operations and save money on technology and staffing.

For every entrepreneur, creating and developing a customer base in home country is one of the basic steps on the way to success. Once establishing business on home front, youare ready to take your businessesto newer destinations. Words Kshetra offers an exclusive global platform to expand your businesses internationally by providing opportunities and financial support necessary to succeed on the global level.