Whether you are looking for expansion into a new market or the establishment of a low-cost manufacturing sites, the process of entry can be complicated and at times frustrating. Many companies try to rush the entry process and expect results similar to those appropriate for domestic market expansion. Often such expectations are unrealistic and have long term consequences. Globalization presents unique challenges requiring a dedicated planning effort. International market entry and expansion are inherently more difficult than accomplishing similar goals in your domestic market. The international marketplace and investment environment is much less familiar making it difficult to project returns. The following are some examples:
- Local competitors are unfamiliar and they have the privillege of an earlier head start.
- Distribution systems may be significantly different from what you are used to in the Canadian market.
- Branding and marketing strategies are unique to the new business environment due to differences in customs and traditions of the host country.
- Government trade development policies are likely to have a major impact on the success of operations.
- Laws and regulations are different especially what pertains to intellectual property, investment lawas, import restrictions and tax regulations.
- Labor laws and union regulations of the host country are commonly not in par with what your management team are used to in your home country. Your management skills and human resource regulation may need to change or customized to ensure acceptance.
- Your own company's international management skills may also need upgrading
- Your IT systems may have to be upgraded, often requiring additional training
- Your financing options need to be explored. They may not resemble what you're used to in Canada, either by type or source.