Globalization | Internationalization & Localization
Globalization is an inevitable process which every company must embrace at some point in order to grow or risk being eaten by the force of globalization as the world’s activities become highly intertwined. This is especially true in the digital age with rapid interaction and integration of social, cultural and economic aspects where information and trade exchanges happened at split second. The Covid-19 pandemic proved how closely interconnected countries were, hence the rising dependencies for digital technologies during this pandemic has taken globalization process at an unprecedented rate giving rise to the need for e-ternationalization the digitalization of internationalization.
Globalization = Internationalization + Localization
Any company aspires to go global should embark in internationalization and localization of its products and services. The formula to successful cross-border expansion involves building a cohesive strategy and robust sales & marketing effort. Launching your business in market such as Asia and Middle East requires careful planning. Before entering into a new market it is important to understand the business environment and cultural differences hence the strategy must adapt to this new market as entering into a new market can be tricky. It is also important to understand your target market well and follow through guided implementation.
Internationalization is the the first step toward globalization a process of cross-border economic expansion to increase your company’s footprint and capture international market share by making your products and services available to the foreign market.
The process of internationalization involves corporate strategy and expert assistance, we work with global partners, subject matter experts, academia, industries professionals and people with international experience to assist companies in their internationalization projects.
Localization helps the products become adaptable to the new market. The extend of localization depends on variety of factors such as culture, religion, language, history, and insight to the new target market. The elements of localization should be taken into consideration when preparing corporate strategy for internationalization. It is important that the product delivers its value preposition and adaptable to its new market preferences and capture local’s heart.
Internationalization | The 5 Phases
- Phase 1: Domestic-market establishment. Strengthen your base, it’s your springboard. For domestic market establishment serving the local market and aspire to go global can use its domestic market experience as a base to innovate and strengthen on its existing products and leverage on its capabilities and competitive advantages.
- Phase 2: Export market research and planning. Market research and planning are crucial so companies can make informed decision and developed cohesive strategies.
- Phase 3: Initial export sales & promotion/The Demo Phase. This is a very important phase for market entry where brand and product introduction first being introduced. It serves as a trial and demonstration process for implementation and realignment of corporate strategy to market response. Appropriate evaluation and necessary adjustment can then be made.
- Phase 4: Expansion of international sales & marketing. If sales are promising and market response are encouraging, more aggressive sales and marketing activities can be rolled out followed by more export orders. A positive demonstration outcome will attract more potential partners and distributors and strengthen the company’s position in the new market.
- Phase 5: Investment on foreign market establishment. At this stage company may wish to firmly set its foot and expand in new market by investing on new plant and infrastructure, R&D and new facilities.