Earlier and faster internationalization   – What we can learn from Born Globals…

…. is the capability to compete internationally and coordinate resources across countries from day one.

Instead of investing several years to build a business in your home market, then afterwards moving to export to the geographically closest markets and further on to additional markets after another couple of years, you risk to miss the international opportunities right from the start and in particular the competitiveness of your products and services as local competitors in export markets have already secured significant market shares.

Born Globals are companies characterized by aiming to sell their products and services internationally from the early start – and “traditionally” they have been kown for being technology companies, targeting often niche markets.

However, new research shows, that you find Born Globals across different industries nowadays as e.g. food, furniture, metal industries and consumer goods.

This confirms my experience with my work advising and helping different companies to internationalize with success. Furthermore, today’s digital tools (differentiated e-commerce strategy; DtC; IoT, etc.) make it nowadays possible to expand successfully with relatively little financial effort.

Therefore, it is worth to consider earlier and faster internationalization in order:

  • not miss the opportunities right from the start.
  • and in particular not to miss the competitiveness of your products and services as local competitors in export markets have already secured significant market share while you are still securing business in your home market for several years.

What characterizes Born Globals:

  • High will to adopt products and services to the markets and to learn from the market needs <-> Emphasis on differentiation strategy.
  • Managers have often a strong international entrepreneurial orientation.
  • Internationalization often through online marketplaces & E-Export as well as through distributors / partners, due to limited financial resources.
  • Present in several industries & countries.

If you consider to internationalize faster, than originally planned, here are some

Important considerations and activities for a successful, early expansion.

  • The domestic market is not large enough to support the scale of the business as it is needed in order to operate.
  • Many potential customers are foreign, multinational companies.
  • You operate in a high-technology industry, that is driven highly by know-how.
  • Your products or services have high value; probably first-mover advantage.
  • Your major competitors have already internationalized or will internationalize soon.
  • Your team / key managers are experienced in internationalization.

Research results have identified four main key factors influencing the success of the internationalization:

  1. Product or service
  2. The industry
  3. The network
  4. The entrepreneur

Good luck with your expansion strategy!