Internationalization of Business
Let’s try to explore the reasons why a business would like to go global. It is important to note that there are many challenges in the path of internationalization, but we’ll focus on the positive attributes of the process for the time-being.
There are five major reasons why a business may want to go global −
● First-mover Advantage − It refers to getting into a new market and enjoy the advantages of being first. It is easy to quickly start doing business and get early adopters by being first.
● Opportunity for Growth − Potential for growth is a very common reason of internationalization. Your market may saturate in your home country and therefore you may set out on exploring new markets.
● Small Local Markets − Start-ups in Finland and Nordics have always looked at internationalization as a major strategy from the very beginning because their local market is small.
● Increase of Customers − If customers are in short supply, it may hit a company’s potential for growth. In such a case, companies may look for internationalization.
● Discourage Local Competitors − Acquiring a new market may mean discouraging other players from getting into the same business-space as one company is in.