What is the key to success in overseas expansion?

Some examples of success are failures.

When I hear about overseas expansion, I have an image that it is a foothold for us to expand our market in a wide global market and grow into a global company, but it is not only successful people who can take advantage of such opportunities.

It is important to remember that some companies failed to expand overseas and had a negative impact on their domestic operations.

In Japan, more and more companies are expanding overseas, and there are some companies that are thinking about doing business with ease. It is dangerous to proceed with a plan with only thoughtless ideas and information, such as that it is not good in Japan or that it may be attractive.

First of all, let’s move forward with a careful plan and operation that captures the key points of successful overseas expansion. The following are the success points that companies that have expanded overseas strongly feel the need to do so.

market research

Market research and analysis are the first requirements for overseas expansion. The survey covers a wide range of topics, including the size of overseas markets, local demand, and competitive analysis.

By collecting, organizing, and analyzing information one by one, we explore the possibility of expanding overseas and narrow down the destinations from each region of the world. We will consider Asian countries, the United States, Europe and so on depending on the service and products.

In addition, if we determine that our products and services are not suitable for overseas expansion, we need to fundamentally review our plans. Consider measures from various angles, such as developing products for overseas markets and exploring marketing strategies that match local needs.

Develop new customers

If you view overseas markets as a market, developing new customers is essential for success. However, even brands and products that have gained market share in the domestic market will start from scratch when they first enter overseas markets. As a result, we will develop new markets from scratch, and the success or failure of these markets will often be the key to success.

Collaboration with advisors and local partners, as described below, and market research also play an important role in developing new customers. When looking for customers overseas, it is important to carefully examine how to compete with local companies and whether there is room for entry, rather than simply expecting a large market.

Cooperation with reliable advisors and local companies

Cooperation with trusted advisors and local companies is especially important for companies that are going to expand overseas for the first time. In order to expand our business overseas, we need know-how different from that of Japan, and we also have information and knowledge that we cannot obtain in Japan.

We also need support staff who can provide safe and efficient information when visiting the site. This is the role of advisors and partners.

You can also use domestic consulting companies, platform businesses, and networks to find advisors. Because it is difficult to meet these people on your own, you may want to ask an outside organization to provide information, match, or introduce you.

Also, in order to actually conduct business, it is necessary to cooperate with partner companies that produce and sell products locally. To find a trustworthy partner, you can use referrals from external organizations in Japan, but it is also important to visit the country and negotiate with the partner.

Also, identify channels that can effectively handle your products and conduct partner analysis.

Appropriate personnel in charge of overseas expansion

Selection of human resources is also an important factor in expanding overseas. Staff dispatched from Japan to the host country play an important role in overseas expansion, and it is common to form a team with dedicated staff to prepare for overseas expansion at the preparatory stage.

In actual management, we will hire local staff, but Japanese staff must play a central role in the startup.

The personnel who are in charge of overseas expansion can not only be employed by existing employees, but can also be recruited in Japan as overseas personnel. If you are looking for a job, you need to choose a medium.

As you are good at and bad at recruiting media, you should compare each recruiting medium such as a career change site, a career change agent, or one that has users both in Japan and abroad, and choose a suitable one. Even if existing employees are to be hired, careful consideration must be given to the conditions and criteria under which they will be chosen, such as skilled or young employees.

Development and optimization of products and services

In order to start business overseas, it is necessary to review our own products and services. it may be necessary to develop services and products for overseas markets from scratch. When expanding overseas, simply moving our products and brands overseas will not lead to success. We need to optimize our products and services by adjusting them to meet the needs, consumer trends, and demand of overseas markets.

When a company has confidence in its own products, or when a person in charge advances overseas, they often feel reluctant to change existing products flexibly. Also, people who have had successful experiences in Japan will try to proceed with their marketing strategy based on their successful experiences in Japan.

However, there are times when a strategy at home is not accepted overseas and you fail or fail. To be successful, it is necessary to optimize products and services in line with competition and local consumer behavior based on market research.

Understanding of legal systems and business practices in host countries

Understanding legal systems, business practices, and other local business development methods is essential for expanding overseas. Since there are various issues such as the establishment of a corporation, the construction of a factory, the number of Japanese staff dispatched, etc., it is important to examine them in detail and show a stance of “When in Rome, do as the Romans do.”.

We sometimes ask experts who are familiar with the local situation to take the actual procedures. However, some countries and regions have difficulties in developing their business, such as regulations on foreign capital and rules on the ratio of employment. Therefore, prior research and analysis are necessary.

In addition, understanding local business customs is the key to developing business that integrates with the local community. In Japan’s unique way, neither the worker nor the consumer will follow.

You can also establish relationships with local partners and companies, and think of management and service deployment based on local companies.

Summary

As described above, by gaining key points, you can approach the success of overseas expansion. Knowing that there are many examples of failure behind many success stories, and by keeping the standard success points to a minimum, we can develop overseas business with more peace of mind.

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X-HUB TOKYO
Webマガジン編集部

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