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Internationalization: 5 Reasons to Expand Your Business overseas.
Internationalization
Josiane NDOMBOU NGAMIGNI
juillet 15, 2022
Business Internalisation Growth Strategies

Today, the global economy can be characterized by the increasing tendency of internationalization. These changes can be explained by the free movement of goods, people, and resources, the growing importance of international trade, and the overall trend of globalization in many spheres of business.

However, despite the growing number of companies expanding abroad worldwide , there are still many firms that haven’t made the leap overseas. If you’re on the fence about taking your company global, consider these five benefits of internationalization.

1. Internationalization Increases Revenue and Cost Savings

Expanding on a global marketspace is more likely to increase overall revenue sales and reduce operational costs, through attracting a larger customer base. In addition, through the help of technologies and the revolution of the internet, international commerce has become even more attractive, for smaller businesses.

Through having the opportunity to outsource, they are able to reduce costs and improve their business management & operational efficiency.

2. Greater Access To Talent

Another excellent benefit of taking your business global is that you get access to a much greater pool of talent. Hiring international talent can bring many advantages including advanced language skills and diverse educational backgrounds.

In addition, expanding globally also allows companies to employ local workers who have the expertise to communicate and serve your clients (within the same time zone) without any complications.

3. Greater Economies os Scale

Some companies may want to expand their business products, as they are more likely to be accepted around the world. In many industries, expansion through internationalisation may benefit companies, through achieving better economies of scale. This is especially the case for companies operating in smaller more domestic markets. Moreover, internationalisation may also serve as an opportunity to differentiate or exploit a new product extension, service, or brand.

4. Boost Competitiveness

Accessing new markets can provide much more than just “tangible” results. For example, more customers and cheaper suppliers. By accessing new markets, you will automatically have to face new competitors. And also adapt your proposition to different local needs. Therefore, your company is forced to innovate and find new solutions to stand out in the market.

Being in a new country can also give you access to several great opportunities. Such as new talents, R&D incentives, strategical partnerships, and many other benefits to increase your (national and global) competitiveness.

More than that: your authority grows exponentially when you start selling abroad. As a consequence, you can also get many more clients and/or charge higher prices in your own country.

5. Foreign Investment Opportunities

Finally, companies considering international expansion shouldn’t forget about the additional investment opportunities that foreign markets can offer.

For instance, many firms are able to develop new resources and forge important connections by operating in global markets.

Companies with multinational operations can also benefit from lucrative investment opportunities that may not exist in their home country. For example, many governments around the world offer incentives for companies looking to invest in their region. 

While there are a lot of benefits to explore there is a lot to look out for too. We will talk about that in our next blog post

Where Do We Come In?

Whether you are a newly formed company, growing international small or medium sized enterprise, or a major international company, we focus on creating value by acting as a one-stop-shop for foreign businesses planning investments in Cameroon. PLS is here to help you through the entire setting up process and more. Read about our services to learn more

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