Expanding and internationalizing activities

Companies may, for various reasons, think about launching their business onto the international stage: access to new, larger markets for their products and services, access to knowledge and technology, the entrepreneur's desire to expand, competition on the domestic market, etc

Whatever the reason for this desire to enter the international market, the following forms generally apply:

  • Export

  • International cooperation agreements (including consortiums and strategic alliances)

  • Direct foreign investments (including investments, subsidiaries, takeovers, and joint ventures abroad)

Many companies still apply a traditional internationalization strategy, meaning they only decide to launch on a foreign market after several years of exclusively-domestic activity. However, some companies adopt a different approach. They begin expanding to the international market very soon after their incorporation, and in many cases during their first year of operation. These companies are often active in "niche" markets, and target, through their specific knowledge, several small market segments worldwide. Their products or services often have a very short lifespan, leading to faster internationalization than companies producing more traditional mass products with a longer lifespan.

Although internationalization may be necessary for the long-term growth and survival of companies, it is in no way a guarantee of success. This stage is important in the life of a company, and must be sufficiently well prepared. You should gather the relevant advice before launching.


Updated 28/07/2017


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