Something strange seems to be happening in the wake of globalization: powerful local companies are increasingly winning against multinational competitors. As protectionist barriers in emerging markets crumble around the world, multinationals are scrambling to find new growth opportunities.
While local companies seek to fragment the market and serve the needs of specific niches, multinationals seek to exploit the global size of the economy. While some emerging-market groups, such as General Electric and IBM, are focusing only on emerging markets because they have become what Ramamurti Singh21 calls “local optimizers,” the expansion of new companies means moving from their traditional markets to new markets. Local businesses are turning to the local market, which means that they are adapting to local markets.
This can be difficult as companies try to attract new customers while trying to cut costs and implement more effective planning processes.
Individualized local markets approach
SMEs have found that building a sustainable international presence means selecting individualised foreign markets so as not to be overwhelmed by the need to meet the needs of their local customers. Some take a more direct approach by partnering with other local players who already have a strong presence in a local market, such as local retailers or local restaurants. Others use local marketing and marketing campaigns, as well as other strategies, to compete in new markets.
This approach to international operations grants the parent company full access to the local market, but also exempts it from laws and regulations that could hinder the activities of foreign companies. This approach to “becoming international” gives him full access to local markets and also frees him from the International Business Times: “This approach to international operations not only allows for greater flexibility in terms of the company’s business model and strategy, but also frees the parent company from laws or regulations that could hinder the activities of a foreign company.
The more resources multinationals have, the more they can explore new markets. Even smaller companies can access critical information about foreign markets, research competition, study target markets, list potential customers and explore competition.
Selling over the World Wide Web
Companies can sell their products over the Internet to customers around the world through local distributors without having to set up new premises. The formation of local clusters in local markets such as the US, Canada and Europe allows operations to be established – and to be established worldwide. In many B2B markets, such clusters can help foreign companies know where to address customers and where their activities are located, especially where local manufacturing will take place.
Mastering the core operations
Organizations that find success in the local markets they enter make sure to master the core processes of the operations they’re running, incorporating specialist solutions such as Grid Dynamics Development Operations into their core operations. At the end of the day, because of some ground-level nuances, it’s often not enough to simply count on what might be a very good reputation associated with the brand that’s expanding into different local markets.