This statistic is from McKinsey’s research, and it’s a stark reminder of the challenges companies face when growing across international frontiers.
In today’s globalized business landscape, expanding beyond borders is no longer a luxury; it’s a strategic imperative. For information technology (IT) companies, international expansion can open the doors to new markets, untapped potential, and unprecedented growth.
At CXO4, we work with clients worldwide, specializing in the Latin American and US markets. Most companies we encounter are either in Latam seeking global expansion or in the US and looking to penetrate or outsource in the Latam market. We have deep roots in both markets, so we understand the intricacies and nuances of doing business there.
However, geographic expansion is a complex formula, no matter where your company is based. It’s a dynamic interplay of strategies, cultures, and execution, and the odds for success aren’t in most companies’ favor.
You need a compelling value proposition and an effective go-to-market strategy to beat the odds. Here are our three top recommendations for successfully scaling your business across borders.
1. Take a phased approach
Often, businesses get caught in the siren song of expanding to multiple countries simultaneously. However, the energy and resources required to make each venture successful require sustained time and effort. A phased approach, entering one market at a time, has proven to be a more thoughtful strategy for our clients. After all, achieving excellence in one place is far better than mediocrity in many.
2. Connect the cultural dots
International business is rife with cultural nuances that demand appreciation and understanding. It’s not enough to just hear – you must truly listen, internalize, and resonate with the local culture. We recommend that each organization has a dedicated team for each target country to ensure an immersion beyond surface-level engagement. Your team should approach each country with curiosity, an open mind, and a refusal to make assumptions.
3. Master the market
Tailoring your approach to each market is non-negotiable. Selling in the US varies drastically from selling in Mexico or Argentina, and this extends beyond the product or service to encompass the entire experience – from how clients buy to the support they expect. Know your competition, unearth your differentiators, and craft a comprehensive business plan. A dedicated Customer Success strategy is a linchpin, ensuring client satisfaction even in diverse market landscapes.
At CXO4, we understand the art and science of geo expansion. It’s not just about market fit; it’s about local talent attraction, cultural insight, and a solid business plan. We offer a Geo Expansion service model that will empower you to craft an irresistible value proposition and navigate international waters cost-effectively.
We’d love to partner with you and help your business flourish beyond borders. The global market awaits – are you ready to seize the opportunity?
