If your intention and priority is to make your company international, firstly what you should do is to place your target market. At times we tend to think that this idea is quite complex but actually it is not if we follow a series of criteria of selection and we analyze the situation that our company stand upon to begin this process and finish it successfully. The Food Team will show you how to do it!
With the pass of time it has been warned in a gradual way an integration of countries creating blocks between them with similar characteristics in both the macroeconomic magnitudes and in the purchase behavior of the consumers and regulations in the foreign trade. This occurrence has favored, in an imminent way, the outsourcing of the SMEs, since instead of analyzing countries in an individual form, we can directly analyze more favorable geographical areas.
For the selection of these more favorable areas we should attend three basic criteria: geographical/cultural proximity, level of development and economic growth.
It is important that our company has a geographic proximity and a cultural one with this group of countries, this will make us become more competitive since the logistic costs and the barriers to commerce, just like the cultural differences, will be minor. For instance, we have the case of Spanish companies that favor the Occidental areas of Europe because of the geographical proximity and the areas of Latin America for the similitude in culture.
Level of development
An agreement should exist between the level of development of the countries in that area and the product or service that we are going to commercialize in it. For example, if you are an innovative country you must search for very developed countries like the United States, Canada or Japan. On the contrary, exporters of products that are little differentiated and with low value owe to look for areas that are considerably less developed, like South America or Africa.
A proposal in full development and economic growth will always be more welcomed in a country, since these people will be more receptive to search for new suppliers. They are draw to innovation and in any way possible they will be willing to invest in new projects.
The economic juncture differs considerably in certain geographic areas, ones grow in a deliberate form and others are stuck or even in recession, you must do some research for strict and accurate information.
Once you have chosen your most favorable geographic area for the internalization of your company, the next step is simply to analyze the countries that belong to those areas and be able to choose which ones will offer you the best conditions to become your target market.