Market Expansion: a Global Community of Individual Cultures 

gigcmo
08/09/2021

Two things are true. 

  1. We live in an increasingly global community. Businesses and individuals have far greater insight into different cultures and a greater ability to communicate and interact with people in other countries (customers, clients and colleagues), with fewer and fewer barriers. 
  2. Within this global community, most people and organisations remain proud of and inherently driven by the individual cultures of their home country. 

These two things can coexist to great benefit. Still, when it comes to market expansion into another country, it’s essential to be fully cognisant of the different drivers, customs and values, rather than blindly assuming that in the global community, everyone thinks and acts the same. 

A global community with individual cultures 

This might sound obvious, but it’s all too easy, especially in countries that share a language or many similar hallmarks, to make generalisations about demographics, market segmentation and our consequent messaging and business strategies.

In recent weeks, we have written at length about the nuances of marketing in the USA, distinct from Europe and the UK. We have looked at the market in India and seen how different companies have structured themselves depending on their long-term plans for market expansion. We have also looked at the GCC and the vital importance of approaching each member state as a whole new market with their own strategy.

Cultural differences are what make the world go round. You only have to take a passing glance at the news to see how different countries react to the same situation. The United States has a long tradition of proud independence verging on isolationism. The UK, despite Brexit, actually has a long-lasting community-based approach alongside its preference for autonomy.

Meanwhile, countries within the EU are far more economically, socially, and politically interdependent. However, try to market an item the same way in Germany as in Spain, and you will have a problem.

Benefits of global market development

Collectively, there are significant benefits to the increasingly connected global community and international business development. From a business perspective, it can mean (amongst other things): 

  • Greater revenue potential through access to new markets
  • Greater market share
  • Greater access to talent
  • Risk spread across different markets
  • Brand building 
  • Exposure to forge in investment opportunities

However, there are also social and political benefits to international business development. For example, it can bring financial investment to poorer communities when business is done responsibly. An article from the Yale School of Management said: 

“Economic growth is the main channel through which globalisation can affect poverty. What researchers have found is that, in general, when countries open up to trade, they tend to grow faster and living standards tend to increase. The usual argument goes that the benefits of this higher growth trickle down to the poor.”

Individual strategies for market expansion

None of this is to put businesses off market expansion - quite the opposite. It highlights the strength and importance of business culture and the values that different communities hold. The need to be fully aware of the nuances in dealing with suppliers or partners worldwide is as fundamental to business development as recognising how different audiences may receive information and interact with products and services. 

Knowing this, from the moment where you begin thinking about market expansion, will help you make informed decisions about market viability and how to approach each one for the best chance of success. The only way to do that is to treat them individually and to have different strategies for each new target in your market expansion plans.

An expert with international experience and knowledge of local market will help your business succeed. Contact gigCMO today for the best expansion strategy.