Doing business abroad: beyond the one-size-fits-all
MOVING YOUR BUSINESS ABROAD
FOCUS ON ECONOMIC VALUE
"Research shows the world is five times less globalized than we think."
Doing business abroad? Globalization is substantially over-estimtaed
The world is semi-globalized. The world is much less flat than we think and then is often suggested. It doesn’t look like this will change soon either. The awareness that this is so is highly important: it makes us reflect on differences versus similarities and potential barriers when crossing borders. One-size-fits all sounds great but it is rarely a good solution. Cultural, administrative, geographic and economic differences have a strong impact. And although physical distance is a dominant indicator for many other things as well, very specific non-distance differences can have a major impact.
Focus on economic value
Many cross-border initiatives ignore or underestimate economic value. Too often they think in terms of ‘internationalization is strategic’, ‘eating or being eaten’ or ‘our home market is saturated’. The real question is: what does the initiative do – both in the short and long term – with the willingness to ‘set a price’ (sales price) versus the operational costs? And how does that relate to (broad) competition? Does it give me a ‘competitive advantage’? In addition, considerations about the risk profile and the mutual transfer of knowledge from the start are indispensable.