Most people in business nowadays are hungry for growth, however many UK businesses are facing new challenges and only focus on trying to win repeat business or improving their current products when in fact they should do the opposite - win new business, create new products, reach new markets.
Economist and marketing expert, Theodore Levitt, once said “If a company’s own actions are not going to make its products obsolete, then another’s will”[1]. Theodore defined something called marketing myopia, which can be simply explained as a narrow-minded approach to a marketing or business situation where only short-term goals are considered or only one aspect out of many other possibilities.
In this current time, with Brexit happening and the risk of the UK quitting the European marketplace, companies need to have a broader vision when it comes to their products or services. Expanding overseas and reaching new markets should be every business’ backup plan. In a marketplace full of distraction and chaos, companies that are going see the bigger picture are going to win. That is why Amazon is a market leader. That is why a small digital marketing agency called Media IQ - which made UK’s 100 SME’s with the fastest-growing overseas sales in 2017 - wins. They made sure they are not relying on one single market.
Leaving the EU will change the UK’s economic relations with the rest of the world. Brexit is likely to make the UK poorer by reducing trade and investment flows. Yes, it is true that the size of these effects will depend upon the nature of the UK’s post-Brexit economic relations with the EU and the rest of the world. However, can you risk it?
These are top 3 positive outcomes for businesses that sell on international markets.
1. Increase your profit margin: There are ecommerce sellers that said flat out that they increased their profit margins by double percentage points simply by finding a different market that gave them a much better profits.
When you design a product in accordance with the market needs, you have better chances of winning the loyalty of that market. Simple example - a software translated into German is much appreciated by users in Germany and they will become loyal customers and pay premium.
2. Increase sales: If your business is succeeding in the UK, expanding globally will likely improve overall revenue. According to 2015 estimates from the United Nations 1.2 million people born in the UK live in other EU countries – this suggests customers are global and that if your company looks beyond the shores of the domestic market, you have some real upside potential.
If you have a competitive advantage that is way beyond anything available to international competitors then this advantage should result in major business success abroad. For example, if you provide software services and add a French and German language version, you should reach a total market of nearly 200 million people.
3. Get more suppliers: Having only one supplier increases supplier power, and as a result they may try to increase their price over time, thinking that you will just accept the price hike. Once you reach new markets, you can find yourself meeting new suppliers, which will greatly increase your ability to negotiate for better terms.
Getting all the knowledge and information about the first steps you need to take when expanding overseas can be difficult at first. You’re going to ask yourself questions like “What are the risks?”, “How do I find the right market?”, “What is the perfect strategy?”
That’s why we created Going Global Live, the hub for businesses that are looking to expand internationally, export products or set up overseas operations. If you’re looking for the answers to all of your questions, register now for free and come and see our impressive line-up of speakers ready to share advice that you wouldn’t otherwise be able to get hold of.
If you are interested in exhibiting at this influential event, contact Event Director Simon Chicken on 0117 929 6091 or simon.chicken@prysmgroup.co.uk
