In the last issue we took a look at the various routes to foreign markets – from exporting and franchising to mergers and digital models. But it doesn’t end with the choice of strategy. Quite the opposite. Most major decisions come afterwards, when the arrangements for the ‘trip’ are already in place. And why are these ventures prone to failure? It’s all about people.
The courage to begin and the discipline to endure
Again and again we see companies that have embarked, or are about to embark, on expansion without any preparation and on the assumption that things that work in the Czech Republic, Germany or Poland will work in Spain, the USA or Brazil. Wrong!
You have eight strategies and countless approaches at your disposal, but the successful ones have one thing in common: understanding what principles and assumptions underpin your current business model and considering whether those same assumptions will apply in your target market. There are always differences. And most often right where you least expect them.
What can you do about it? For expansion you need experienced executives – managers who know the market and have a track record. The less you know, the more you will have to verify all the assumptions of your strategy and planned model at every step. You need to manage risk and have a plan B, C and sometimes even D.
In this issue you will read four stories – four approaches
- LASVIT and Leon Jakimič built their expansion on trust in people, patience and accurate testing. They didn’t want volume, they wanted meaningfulness. And it’s working.
- IKEA and Anna Rumianová. The pandemic? An opportunity for them. In a short period of time, a new online sales model has managed to generate turnover in excess of CZK 12 billion per year. The traditional brick-and-mortar store giant has become a digital powerhouse.
- ‘Low-cost-door’ and Jiří Kabát. Lacking a competitive product for underground railway operations, he took matters into his own hands and succeeded. He combined technical innovation with expansion into foreign markets, connected Czech and Austrian teams and launched a partnership that brought more than just a new product. Strategy, tenacity and results that make sense.
- And here at BM4U? We and our colleagues are currently managing dozens of expansions – from plant construction and technology transfers to restructuring of foreign units. We help companies to grow, breathe again and reassess their direction.mpanies to grow, breathe again and reassess their direction.
Expanding into new markets according to LASVIT
Expansion into new markets is a key factor in the growth and success of a company. But the process requires focus, planning and a strategic approach. Successful entrepreneur and founder of LASVIT Leon Jakimič shares practical tips and processes that have helped LASVIT to expand into foreign markets. Read more on the BM4U website! QR code: More here! www.bm4u.cz – link to the new newsletter