Steps and schedules required for companies to expand overseas

Draw purpose and vision
Establishment and staffing of research teams
Choose support and consultants
Market research and on-site visits
Analysis of survey results and verification of plan implementation
Execution of the plan on site
Summary

Draw purpose and vision

It is important to clarify the purpose and vision in advance of overseas expansion. Overseas expansion without objectives and vision tends to blur the direction and spoil the plan.

Also, if it fails, it is dangerous because it makes it easy to mistake the exit line. If you have a clear objective, it will be easier to judge whether or not your overseas business has produced results.

We may be looking for ways to reduce production costs and expand sales channels by developing markets. Draw up a vision for the future by clarifying the positioning of overseas expansion in your business strategy.

For example, if you decide to expand overseas at the request of a client, the situation is likely to change in the future. The risk of failure increases if you advance based on only a little information as customers tell you.

By establishing goals and visions, we will be able to better understand the information we need and the direction of our research, and we will be able to proceed smoothly with our future plans.

Establishment and staffing of research teams

The most important step in the overseas expansion process is a preparatory process that includes market and field surveys, competitive surveys, and the selection of suppliers and supporters. This will be done by the team on a schedule over a long period of time. It is important to clarify who is in charge and who plays a central role within the company, even if it is implemented on a company-wide basis.

Research teams may be selected from existing employees or staff, or they may hire new people from outside the company. If you are going to train people from now on, it may be necessary to call a professional consultant for human resource development.

We will select the appropriate personnel for the survey taking the above points into consideration.

When expanding overseas, it is important to reduce the burden of responsibility and work by creating a dedicated team that is not related to the domestic business, so that they can concentrate on overseas business. If you make them work at the same time, they may not be able to do their best.

Recently, the number of job offers for overseas expansion such as the Overseas Planning Department and the Overseas Business Division is increasing. It will be necessary to flexibly select people from both inside and outside the company so that the right person can be placed in the right position.

Choose support and consultants

Companies that plan to expand overseas often rely on outside experts for support. In some cases, your own staff and know-how may not be enough, and in order to move on to the next stage without taking time for research and information gathering, the advantage of utilizing specialized organizations is great.

If you need information, you can use a consulting company or platform for overseas expansion, or you can use a national public agency. The number of databases and consultation desks has been increasing among the ministries and agencies that are promoting overseas expansion, and many of them are available free of charge.

It is important to select and use what your company needs from these kinds of support. Depending on the support you use, it may be expensive, so you should consider using it while looking at the cost effectiveness.

Market research and on-site visits

Careful research such as market research and information gathering are essential in preparing for overseas expansion. In particular, when expanding overseas, it is often difficult to obtain accurate and sufficient information as in Japan.

Moreover, in an environment that is very different from that of Japan, we may be exposed to great danger due to changes in political and social situations. Therefore, it is necessary to conduct sufficient preliminary research in advance to reduce risks when expanding overseas.

In the survey, as a preliminary survey in Japan, local information such as market size, market characteristics, distribution, competition, and business practices is collected. The above specialized agencies can be used to collect information.

In addition to obtaining information from the database, you can also request a direct investigation on the spot. It takes time and money to request surveys of several candidate sites, so it is important to narrow down the number of sites in advance and reduce unnecessary surveys.

Once we have narrowed down the candidates more specifically based on the survey results, we will conduct further field surveys. It is important to check the site on your own.

As the number of times increases, the cost increases, but it is also necessary to invest sufficient funds as necessary expenses. In addition to conducting a field survey on your own, you can also participate in an inspection tour planned by each organization.

Analysis of survey results and verification of plan implementation

As the survey progresses, we will examine the content of the survey in Japan and the primary information in the country, organize the information, and concretely examine the overall overseas expansion plan.

It is necessary to continue to examine the possibility of realization, and to stop and go back to the previous step if there is any information that would hinder the realization of the objective or future vision.

The main points that need to be verified are the procedures and conditions for establishing a local subsidiary, and legal regulations, etc. Local safety must also be fully considered. Also, in the case of factory construction, there are construction standards and the possibility of acquiring the land.

Since there are many things to be verified, it is necessary for each member of the investigation team to divide the work.

Execution of the plan on site

At the implementation stage, what is important is to become a local partner company that you can rely on through local procedures such as lawyers. Finding a trustworthy company or office can help you move forward with your business.

The procedures in the unfamiliar land will be left to the local partner. In addition, you need to open a bank account and go through procedures with tax authorities.

Furthermore, in addition to the procedures for the establishment of the company, we will support the acquisition of local human resources and the acquisition of visas for staff dispatched to local areas, and advance the final preparations. It is important to understand the differences in working styles, customs, and ways of thinking between Japan and the host country, and to carefully promote human resource development with time to spare.

It is also important to relieve the anxiety of the staff and family members dispatched from Japan about the local life. In advance, you should provide information and make a business trip to the local area so that you can imagine your life there, so that you can dispatch without anxiety.

Summary

As described above, based on the establishment of objectives and vision, and the organization of the team and support system, it is important to carry out processes such as preliminary survey, field survey, and deployment to the field without delay through stages and KPIs.