Question

How does a manager decide when to recommend expanding internationally? What things does he/she need to consider?

Answer 1

There can be a large number of associated factors that we might consider as a viable presence in our external or internal environment that we might consider when considering the right time to expand internationally. The factors include a saturated market that is filled to the brim with competition, stagnation, reaching the end of the lifecycle for a product in the current market, etc. We have to be open to doing constant research in terms of opportunities in the foreign market for our product or service, which might be losing relevance in the home country. There is also a time when the company simply wants to grow its business but its market provides no markers for it to extend towards. This is when a manager would search for trends that show similar opportunities for their offering to be viable in another market. There is also a rare window of opportunity that a company can utilize by expanding into another country with a change in trade laws, cheaper labor, or abundance of raw material, an abundance of which is highly favorable.

They also need to consider the market potential. The fact that their current market might not show the necessary growth or response does not necessarily mean that other markets could be utilized, and we need thorough market research, the presence of customers, target population, growth potential among other things to ensure that even considering the idea is worthwhile.

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