When you think of your favourite restaurants, shops and other establishments, the chances are at least one of these has a presence in several countries. Now, thanks to advances in technology, globalization has become an integral part of many businesses’ growth strategy.
Alongside a wealth of benefits, globalization comes with many challenges that if you’re not prepared for, can be difficult to negotiate.
What are the benefits of globalization?
Increased access to skills and knowledge
Access to a wider talent pool means you can utilise a skillset that may not be as readily available in your current country of business. For example, in Canada, the workforce are the third-best educated in the world. Finding a worker with a specific qualification may be more accessible in certain countries than others. This is important to be mindful of when choosing your country of globalization.
If your competitors aren’t currently operating globally, this can prove an advantage by entering into a market with no direct international competition. Being first to a global market with your product or service means there could be opportunity for huge growth as you reach new customers.
Increased cultural diversity
When you visit a new country, you learn and experience parts of its culture. Injecting some culture into your business can help create new ideas for products or services. This more diverse perspective means you could be widening your reach by tailoring your products to a more varied customer base.
A major benefit of globalization is a reduction in cost. The cost of labouring in some countries can be lower, alongside the rate of producing products. At a lower cost, globalization can mean a wider choice of resources and it being easier to meet the demands of your customers.
What are the challenges of globalization?
Successfully recruiting the right staff for your business is challenging enough, but in a new country with different process, it can feel ten times harder. There’s plenty to think about, including salaries and benefits, language barriers, times zones, taxes and more. And on top of this, the recruits must be the right fit for your company.
Keeping on top of the laws and regulations to maintain compliancy in each country can be a job in itself. Staying up to date is vital and not doing so can have massive reputational and financial repercussions. For example, residing in the EU means dealing with the complexities of the General Data Protection Regulation. On top of this, there’s different privacy regulations within specific countries.
Speaking the language of your workforce is only half of what makes good communication. Different countries have different words for different things.
Just as slang is commonly used in this country, language variations are common in every area of the globe. Being aware of these can be the difference between being relatable or alienating your potential customers.
Alongside having massive advantage, increased competition can come with its own challenges. When you’re entering a global market, there’s increasing demand to be more innovative at a cheaper cost. You’re constantly striving to stay relevant and serve your customers in a way that trumps your competition.
What are your next steps for globalization?
It’s important to work with the right partner for your globalization to be a success. When you find the right partner, they can become like an arm to your business and guide you through the process.
There are many aspects to consider when choosing which country to expand into to help you achieve your business goals. Things you need to consider include:
· Will the product/service meet the needs of the new market?
· Will the resources available in the country provide benefit and allow for the continuation and growth of your business?
· What government programs/schemes are in place to help businesses?
At Procorre Global, we help you take the leap and start your globalization journey. Our team of experts will provide you with all the support you need to expand your business and achieve your goals.
Request a call back from our global expansion expert today to find out how we can help get your business back on track.