PMI, because it is important to focus on internationalization
After the Globalization, and the digital revolution, all the italian companies, in particular big and small ones, should be definitely “ international”.
With a sluggish internal commercial request, and many difficulties, in the economy take off, many companies should find new markets, where sell their products and find raw materials at more accessible prices.
Starting a process of Internationalization , is not easy, because it doesn’t mean only creating trade relationship with foreign countries , or delocate the company headquarters, buti t means, creating some new strategies and activities, which are linked to a larger stuff.
Getting international, is a long and difficult process, and P.M.I should have the required characteristics and follow some important steps.
They should overall focus their attention on a larger market, realizing the real situation is composed by huge advantages, but also by great risks.; that’s why every manager has to make a very detailed strategy,before starting this new experience.
First of all it is importat to know well the territory where they would work: every country has its laws, its tax system, and different trade conditions and suppliers. So especially small companies have to be prepared to face every kind of problems, otherwise they will certainely fail.
How to get a company international?
we can talk about Internationalization , when a company stats an activity abroad.
To get international means:
- To sell their products abroad.
- To open a branch office in another country.
- To start partnership with foreign companies.
- To delocate the production abroad.
- To find suppliers from a foreign country.
But the most important things is to have the required characteristics.
Required characteristics of: P.M.I.
The reason who push a company to work abroad are two:
- To reduce costs: maybe finding cheaper suppliers, and a lighter tax system.
- To increase earnings: for instance finding new customers, who are better suitable to their products or to their services.
Also small companies can get this target, but they need to have some characteristics:
- First of all they must have a great economic stability, and many resources to invest; not only money, but also qualified people, a good equipment, time and energy.
- Their products should have competitive prices on a market in a foreign country. So it is necessary to study very carefully the new field of work.
- The most important things to have success are: the research and the strategy, small and middle companies can be successful abroad too.
The advantages of Internationalization
the most important advantage of internationalization is the possibility to increase the sales volume, building mutual business relationships, with new suppliers , who can be useful for their activity.
Besides,they can find the right target of customers really interested in their products and in their services.
A small company, could open a branch office, in a country where the labour force costs less, and also the taxes are lighter; but internationalization means also increasing the appeal of their brand, which can have positive effects on their company reputation.
At the end , some products can be more interesting and fashionableon in a different market and in a different country, and it can be produced for long time.
Summing up, Internationalization takes a wind of modernisation, changing and the possibility of getting involved in a new world, which can be really useful for the development even of a small company.
How to start a process of Internationalization
Before starting this process, it is necessary analizying the market, fixing a target, in order to catchthe trust of the foreign customers, this means changing completely their behaviour and ask for the help of an expert.
All these actions should me made before investing money.
If you need some money, you can ask for competition announcements, or for funding, from public or private institutions.
Departments and Regions, are ready to help companies, which would like to increase their earnings, exploring new markets.