The global marketplace offers vast opportunities for tech brands that are planning to incorporate internationalisation into their marketing strategy and seeking to source their products/services worldwide. Learn how to have a successful internationalisation of your tech brand.
Technology businesses that set out to expand their brand internationally have varying objectives. But usually follow a standard business development and marketing entry strategy when tapping into the highly competitive global market. Although the word internationalisation used to be often associated with big companies and corporations. Technology advancements have made bigger chances for startups and SMEs of successful internationalisation of their tech brand.
Having a successful internationalisation of your tech brand is a game-changer as it will provide you with a wide array of marketing options to enhance brand awareness and even create a strong international presence. But what really drives technology businesses to take their brand global? And what are the future benefits of taking an internationalisation approach to marketing?
Many technology businesses that found success in their domestic market see the potential of growth overseas. Any product/service that has a unique technological advantage, has a higher chance to grow successfully on a global scale. Reaching out to the global market will likely increase your revenue. The key is to customise your tech brand marketing strategy and integrate internationalisation to meet the demands of the overseas market.
Knowledge & innovation
Expanding globally helps technology businesses better understand the diversity of the international tech market, as well as on how to seamlessly penetrate it and accomplish business goals. It is important to ensure consistent branding. Adapting your tech brand to the new foreign environment is the key to successful internationalisation of your tech brand.
What equals a bigger market? Exactly more customers. When operating in a global market you might find that many export markets are not as competitive as the local market if your tech brand has enough unique features. And when the local market suddenly collapses, businesses can find stability and increased revenue by exporting their services or products abroad to compensate for the sales decline. Sounds like a win-win situation!
Economies of scale
Exporting on a global basis provides plenty of opportunities to introduce your tech brand to the globe. Highlighting the uniqueness of the service model, brand and product allow for greater scales of economy.
The degree to which a tech brand is prepared to adapt to local market requirements decides which path for the market entry is chosen. Here four most important strategies to successful internationalise of your tech brand;
Global strategy – Maximising global efficiency and centralised decision-making.
In industries that are characterised by high integration pressure and short innovation cycles, a globally oriented strategy is recommended. In this case, the corporate headquarter controls the operation. Economies of scale enjoy top priority, the brands are highly standardised. However, adaptation to specific local market needs is limited, which may result in problems with local acceptance.
Multi domestic strategy
In this brand strategy, the business models and products/service are strongly adapted to local consumer needs. Country units operate largely independently. Economies of scale are neglected in order to achieve a higher acceptance in local markets. However, the high degree of adaptation can turn out to be a problem when the brand has to hold its own against competitors in a highly globalised environment.
The transnational strategy aims to combine the flexibility of the multi-domestic strategy with the efficiency gains achieved by global standardisation. This difficult undertaking is recommended when companies are equally dependent on economies of scale as well as on adaptation to local consumer needs. Despite these adjustments, brands managed under a transnational strategy can continue to use the reputation of their country of origin for their branding.
Home replication strategy
The home replication strategy is applied when there is little or no need for flexibility or standardisation. This strategy aims to open up additional international markets without major adaptations for products primarily developed for domestic consumers. In the long run, however, this strategy includes the risk of not completely grasping local market conditions and thus losing competitiveness.
The choice of the right strategy will be rewarded in any case. Internationalisation of your tech brand is a declaration of your commitment to upward growth. Change is never easy, but sometimes, the change will do you good. Have you heard about our international brand marketing and branding agency? Click here for more