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Mona Pearl On Growth Models - Past, Present and Future: Where do Middle Market Companies Go For Global Expansion Expertise?
Date:6/30/2010

nesses, globalization is a potential antidote to a shrinking domestic markets and a difficult home economy. But, not so fast. In any expansion effort, it is critical to ask and answer these key questions: Where in the global marketplace is the best market for our product/service? Why? What are the corporate goals for expanding across borders? What data supports these decisions? How does this global expansion fit in with the overall corporate strategy as it is today and as it should be tomorrow (i.e. as the company evolves and world trends and developments change)?

Before extensive due diligence is complete, many Middle Market businesses are hastily lured into specific global markets by competitors and a hunger for market share and quick profits. As such, they neglect to ask the right questions, do their research, gather data, and analyze that data carefully in order to establish a detailed strategy and comprehensive plan for international expansion. Erroneously, some businesses just assume they have to expand and fail to consider the long term versus short term implications of globalization. Consequently, over half of U.S. global ventures end in failure, and valuable resources are squandered.

The answers to these questions, and many others, come from gathering the right information from the right sources. It's easy to get misdirected or overwhelmed by the staggering quantity of available information. Stay focused on research that includes assessment of consumer demand, consumer profiles, competition, pricing, packaging, foreign regulations, shipping, and distribution to name a few. In addition, companies need to look internally at their strengths and weaknesses in relation to their action plan. That means evaluating corporate resources, manpower, internal knowledge and their own culture (perception, loyalty, motivation) before determining whether or not expansion opportunities are viable and warrant penetration into new markets.

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