How to Overcome Internationalization Risks

Updated: June 14, 2010

Internationalization offers new possibilities to business companies. It enables to increase their volumes of products and services and, therefore their turnover. It also leads to improvements in the production system as well as in the communication channels. When facing internationalization, companies tend to leverage their assets to operate more efficiently.

Internationalization involves many issues such as adapting your business operation to different regulations and taxation systems. It also requires translation and localization of the different business operations such as documentation, project planning, training, support and maintenance, etc.

Steps to achieve successful business internationalization:

1. Identify your goals and risks

Will you have a global goal or specific goals for different countries? This will depend on your approach (global or local) towards internationalization.

To control the risk factor, first of all, you need to identify them. A common economic risk is exchange rates fluctuations. There are also other risks related to political and social issues that might affect the economic exchange.

2. Detailed product evaluation

When analyzing the product, you should bear in mind all the aspects including product functionality, design, market price and name. Some products are unsuitable for specific markets due to their functionality or to specific local regulations.

3. Learn the regulatory frameworks

There are some products or services that are banned from specific countries or can be traded under strict regulations. Online gambling, for instances, has been banned or severely restricted in USA and therefore this country should not be a target for this type of services. You should also be aware of the Free Trade Agreements that involve your country.

4. Design a business strategy for each specific market

Each specific market will require a different approach and therefore you have to implement a strategy that will suit the target locale, starting from choosing a mode of entry. The operational strategy should depend on the market requirements, the resources available and the performances objectives. The appropriate business plan will require effective management information systems in order to expedite transactions and improve the quality of the services.

5. Take into consideration political and economic situation

Political, economic and social issues can stimulate or hinder business internationalization. These factors could affect buying behavior, exchange rates, products prices, taxes, etc. Political and economic uncertainties may certainly affect your business operations and for that reason a comprehensive research of the prospect markets should be carried out before starting any attempt of internationalization.

6. Be aware of the language barrier

The language barrier could easily hinder internationalization projects. It is highly advisable get the support of a translation company that specializes whether in financial translations or in legal translations. Get support from native speakers analysts that are culturally up-to-date. Their knowledge will help you to understand better the new environment and how to the advantages of the specific characteristics of the target market.

Featured Research
  • Can Gamification Improve Contact Center Performance

    We have all heard the phrase "all work and no play". Well, would you believe us if we were to tell you that by implementing gamification you can INCREASE contact center engagement, morale, and overall performance? Spoiler alert: 89% of contact center employees believe that a point system within their contact center would boost their engagement! more

  • [Infographic] 8 Common Pain Points UC Eliminates

    Every company has moments of frustration, it is when these moments become extended periods of inefficiency, or pain points, where we start to see loss in productivity and employee morale. What truly sets a successful business apart from those of its competitors, is how they take these pain points and use them as opportunities to improve upon procedures and systems to eliminate pain points and move beyond what was the status quo. more

  • Go VoIP and Go Green

    You may be looking to switch to VoIP because of the cost benefits that it will bring your company, but did you know that it is also FAR BETTER than traditional phone systems for the environment as well? With environmental impact being at the forefront of both consumer and business minds, it is essential that business decisions are made now based on economic AND ecological impact. more

  • 10 Steps for Creating an Accurate Call Center Forecast

    While other customer service channels are gaining traction, phone support is still one of the most HEAVILY used customer service communication methods. Now what does this mean for YOUR business? We answer that question and more in our latest paper which discusses the importance of knowing call volumes, peak call times, and industry trends so YOU can accurately staff your call center to handle all your clients demands. more

  • eGuide: Comparing UC Vendors

    Changing your company’s business communications solution is an investment in time and money that will touch everyone in your organization. A successful unified communications (UC) deployment should streamline everyone’s work flow, simplify IT operations and deliver a lowered total cost of operations. Your company deserves nothing less. more