Businesses may look at internationalization for many reasons, each with their own goals and objectives. But whether it is proactive or reactive, expanding to overseas markets may not necessarily be just about a strategic move to increase profits and market share. In fact, some businesses may see it as an option for survival.
Businesses whose focus is on maximizing economies of scale would find motivation in exploring foreign markets because this provides the potential opportunity for a more cost-efficient avenue for resources and manpower. Other businesses may take on internationalization to gain competitiveness and add sophistication to their innovation capability.
Whatever the reason that businesses choose to expand abroad, it must take caution to navigate around a potential pitfall that is relevant to all territories. Businesses that have experienced success in its domestic market may find that the determination factors for sustainability in a foreign territory could be different. Typically, a lack of strategy and market knowledge during the initial phases could lead to development and implementation of an inadequate pilot operation.
Internationalization is a strategic game with in-depth planning and customized preparation an absolute necessity. There is no all encompassing expansion model or system that fits every business so it makes prudent sense for a business to leverage on all possible avenues to ensure the necessary knowledge and tools are in place. Seeking assistance from a government agency like IE Singapore could provide that additional leverage.
International Enterprise (IE) Singapore
IE Singapore is the government agency driving Singapore’s external economy. For the past 30 years, IE Singapore has been spearheading the overseas growth of Singapore-based companies and promoting international trade, with a vision of a thriving business hub in Singapore with globally competitive companies and leading international traders.
How Will IE Singapore Assist In Your Business Internationalization Plans?
IE Singapore offers a suite of assistance programmes under the Market Readiness Assistance and Global Company Partnership framework.
Market Readiness Assistance (MRA)
Your business wants to:
- Venture overseas for the first time.
- Explore a new market for business expansion.
- Export to a new market.
Global Company Partnership (GCP)
Your business wants to:
- Further its overseas presence.
- Improve its firm-level capabilities.
- Gain access to financing schemes for the market.
With Singapore providing a limited market, and increasingly becoming saturated, it is important for businesses to look overseas for sustainable and expanded growth. Furthermore, new territories may also provide the opportunity to access more cost-efficient resources. So what's holding you back?