International business development and reasons to going global by Duncan McCampbell, international business consultant

American companies are increasingly going overseas in search of growth and new opportunities. What's behind the move? It’s change--the increasingly urgent need to either initiate change, or respond to it.

· Domestic markets are well penetrated; share and revenue growth are static

· Foreign markets are growing, developing, showing attractive potential

· Competitors are investing in new overseas opportunities

· Customers are expanding globally and expecting their domestic partners to follow

· Foreign partners offer attractive capabilities, technologies, market access

· Costs and regulatory pressures are lower overseas

The good news is that rapid change and increased global competition have always been good for American businesses. Why? Because Americans are known around the world for being creatively resourceful, perhaps a bit impatient, and above all enormously focused upon initiating growth and change in their businesses.

Below are some reasons why American businesses have chosen to look beyond their domestic markets. The people of McCampbell Global have helped their clients address all of them--and more.

Should We Be 'Over There' Now? Next Year?

You have watched China and India rapidly build prosperous middle classes that will surely demand products and services like yours. Meanwhile, your competitors are over there, taking their lumps . . . but learning their lessons and building a foundation for the future. What is the opportunitiy horizon for two years? For five years? Should you be there now? Do you partner? Do you acquire? Do you go it alone?

License, Franchise?

Perhaps as a prelude to direct market entry you'd like to explore licensing your brand or intellectual property to a foreign company. What is the value of that license? Who would be potential licensees, and how do you meet them? Are they up to the task of safeguarding and growing your brand equity in their country? How is licensing done in that country?

What Are The Risks?

You have heard horror stories about the lack of intellectual property protection in Country X. Other companies are taking the risks. What are they doing? Are there ways for you to protect yourself?

Should I Follow My Customers Over There?

Your best customers are investing in their international operations—perhaps in response to their customers’ needs. What is the cost/benefit analysis for following your customers into these foreign countries and meeting their needs? What, if anything, is likely to happen if you don’t?

Are My Foreign Distributors Performing?

Your foreign distributors report a sale every now and then. Is that the right sales model for you? Are you getting your fair share of that foreign market? Are your pricing levels right? Are you commissions working? What is the cost/benefit analysis for taking a more direct sales approach?

What's It Like Getting Regulatory Approval?

You have built an effective, in-house regulatory and compliance function to support your products here in the U.S. You want to enter a foreign market, but how do they regulate? You've spent a lot of money on legal advice, so why is the answer always "maybe"?

Why Can't I Acquire That Foreign Company?

You've wanted to plant your flag in Country X for several years and it just hasn’t happened. Meanwhile, a few opportunities have ended up in the hands of your competitors. What is standing between you and that foreign acquisition?

Are They Reliable Partners?

You’ve met representatives of foreign companies and distributors at trade shows who want to partner with you or sell your products in their countries. What do they bring to the table? Do they have any experience working with an American company? What is their reputation in their country? Are they financially sound? Do they get along with their Government?

Does Working In That Country Require Us to Adopt Unacceptable Practices?

You have heard that the Party or the Government in Country X chooses the winners and losers in the marketplace. Is that really true? So what if it is? How do you know who the key people are? How do you meet them? What do they want? Can your company operate in an ethical and legal way in that country and still be commercially successful?

How Do I Get Up To Speed Quickly?

Your company has made an acquisition in a foreign country. You’ve just learned that it’s your responsibility to come up with a plan to “integrate” selected areas of the foreign and domestic operations in order to attain the “leverage” that someone at corporate promised in the acquisition document. How do you quickly get a handle on the real issues?

How Do I Work With Foreign Subsidiaries?

Corporate wants you to start marketing the products and services of your foreign sister companies here in the U.S., and wants your sister companies to do the same with your products in their markets. Who “owns” the customer? Who handles product support? What potential revenue reporting, cost, tax and transfer pricing issues arise from this directive? What combination of inter-company structure and operations integration will make it happen with the fewest complications and the greatest bottom-line benefit?

How Do I Choose The Right People?

You have sent several people on costly overseas assignments. They often struggle and then leave the company soon after returning home. Why does that happen? Are you choosing the right kind of person to send overseas, or just who's available at the time? Do you plan for their return? Would you expect their overseas experience to change them? Are they more valuable after they return? If so, what can you do to hold on to them and use their experience?

Why Go Global?