Global expansion: What it is and how to succeed

Expanding your business into international markets requires more than ambition. You’ll need strategy, adaptability, and a clear understanding of foreign markets. When done correctly, your business will access new talent, reduce dependency on a single market, and gain a competitive edge.

Here, we’ll explain what the purpose of global expansion is, its benefits and challenges, and strategies for international expansion.

What is global expansion?

When a business undergoes global expansion, it extends operations beyond domestic borders, establishing a presence in foreign markets. Proven global expansion strategies allow companies to access new customer bases, diversify revenue streams, and enhance brand recognition internationally. International expansion strategies vary depending on the company and the global market.

Global trade was on pace to hit a record $33 trillion in 2024, with services alone growing by 7%. With developing countries like India, Indonesia, and China establishing stronger economies, there are plenty of opportunities for business expansion.

Key benefits of implementing global expansion strategies

Careful international expansion of your business offers numerous benefits that position you for long-term success—reaching new markets, tapping into fresh resources, strengthening supply chains, and lowering costs.

Here are some of the most significant advantages businesses can gain from global expansion:

Economies of scale: Economies of scale refer to the cost advantages businesses gain when production increases, allowing them to lower the cost per unit and mitigate risk. Expanding globally enables a business to produce larger quantities and spread fixed costs.
Access to resources: When your business expands internationally, you don’t just get access to new customers but also to raw materials, skilled local talent, and specialized expertise.
Strategic business partnerships: New markets enable collaborations with local companies. These partnerships can simplify entry into target markets and enhance the visibility of your global business.
Extended product lifecycle: Products with waning popularity at home may find renewed interest in international markets. New audiences allow a business to extend the revenue-generating potential of its offerings.
Product/service diversification: Expanding globally allows businesses to tweak their products or services to match local tastes, often leading to fresh ideas that can pay off back home. For example, McDonald’s added Teriyaki burgers to their menu in Japan, boosting sales locally and inspiring creative menu changes in other target markets.
Increased revenue streams: International markets unlock new opportunities to generate income. With a wider audience, businesses can rely on multiple sources of revenue to achieve steady financial growth, further propelling their growth.
Decreased market dependency: Business expansion allows your organization to reduce reliance on a single target market, protecting it against regional economic fluctuations. Your company can remain stable if something drastic happens in your domestic economy.

8 potential challenges of international expansion strategies

Expanding into international markets brings distinct challenges unlike those in domestic markets. Although the upsides make it worth exploring, businesses must remain vigilant to avoid financial losses, legal trouble, or a tarnished reputation.

Here are some common hurdles for businesses expanding into international markets and how to overcome them:

Cultural differences: New markets often come with entirely different cultures. Misinterpreting local customs or values creates barriers to connection with your audience. Businesses should perform thorough market research and hire local experts to help align their products, messaging, and practices with regional expectations.
Regulatory compliance: Legal requirements differ between markets. Global businesses must understand and comply with these local regulations to avoid legal setbacks and maintain ethical practices. Partnering with local legal advisors can simplify this process. For international hiring, an Employer of Record (EOR) can handle administrative tasks like payroll, taxes, and benefits compliance.
Language barriers: Poor translation will hamper relationships with customers and partners. Global businesses should invest in professional translation services to localize their company materials and documents to avoid miscommunication.
Logistical complexities: Supply chains and distribution across borders pose unique challenges that can create delays and increase costs. You can mitigate risk by partnering with local logistics providers that offer tech solutions to track shipments and optimize operations.
Market saturation: A newly expanding business may struggle to stand out in a target market with strong competitors. Market research can identify gaps or underserved customer needs your business can fulfill.
Currency fluctuations: Changing exchange rates can affect your bottom line. Protect your profits by adopting financial hedging strategies or working with international banking services to stabilize transactions.
Cultural resistance to foreign brands: Some regions may prefer local companies over foreign entrants. Build trust by adapting your branding, products, and customer service to connect with local values and preferences.
High operational costs: Expanding into new countries can strain budgets, especially during the initial setup phase. Start with scalable solutions like partnerships or remote teams to minimize costs while you test the market.

11 steps to build a strategy for international expansion

Building an international expansion plan is the first step to successfully going global. A strong market entry strategy helps your business navigate new markets, tackle localization challenges, and leverage opportunities. Each step lays the foundation for long-term success, so it’s essential to approach expansion with a clear direction.

Here’s a simple step-by-step guide to create your own international strategy:

Define your goals: Be clear about what you want to achieve when expanding internationally. Whether you’re increasing revenue, growing your customer base, or diversifying your operations by hiring new talent, your goals will guide the entire process.
Conduct market research: Learn everything you can about the markets you’re considering entering, including customer needs, cultural expectations, and local competitors. Thorough research informs a strong market entry strategy that suits the region. Without it, you may misinterpret local customs or values, potentially damaging your reputation.
Choose your target market: Not every market is right for your business. Focus on regions with built-in demand for your product or service where you can offer something unique.
Develop a localization plan: Adapt your products, marketing, and website to match the local culture so your brand feels more authentic. Translation and localization are significant undertakings, but they’re necessary to connect with new audiences. Translation technology, such as Smartling’s AI Translation solution, can help you translate text in minutes instead of waiting days or weeks for translations with traditional methods. By blending the powers of large language models and neural machine translation, Smartling provides fast, affordable, and high-quality translations.
Evaluate regulatory requirements: Research laws and regulations in the new market. Partnerships with local legal experts save time and prevent costly mistakes.
Plan your market entry: Decide how you’ll enter the market—whether through direct sales, partnerships, or setting up local offices. Each approach has pros and cons, so choose one that fits your goals and resources.
Build a local team: Hiring local talent helps you understand the market better and connect with customers. A local team also builds credibility and trust in the region.
Set pricing: Research local pricing norms and adjust your rates to stay competitive while maintaining profitability.
Establish strong partnerships: Partner with local distributors or service providers to expand your network and strengthen your presence in the new market. New partnerships help you deliver solutions while gaining practical insights from companies that have succeeded in the region.
Test your strategy: A strategy that works domestically won’t necessarily work in a new market. Start with a small-scale launch to gather feedback and adjust your plan before fully committing.
Monitor and adapt: Global expansion isn’t a one-and-done effort. Track progress, listen to feedback, and be ready to adjust your strategy as the market evolves.

Smartling helps you expand globally

Translating website content and customer support materials takes time and often incurs unnecessary overhead costs. Fortunately, the right tools allow your business to avoid costly errors and delays that stall your international expansion strategies.

Smartling’s AI Translation technology reduces your translation time from weeks or days to just hours or minutes. Not only that, but Smartling’s Translation Management System also easily integrates with your existing tech stack, like your content management system or your marketing automation platform, to make translation easy and efficient.

Here, we’ll explain what the purpose of global expansion is, its benefits and challenges, and strategies for international expansion.

What is global expansion?

Key benefits of implementing global expansion strategies

Here are some of the most significant advantages businesses can gain from global expansion:

Economies of scale: Economies of scale refer to the cost advantages businesses gain when production increases, allowing them to lower the cost per unit and mitigate risk. Expanding globally enables a business to produce larger quantities and spread fixed costs.
Access to resources: When your business expands internationally, you don’t just get access to new customers but also to raw materials, skilled local talent, and specialized expertise.
Strategic business partnerships: New markets enable collaborations with local companies. These partnerships can simplify entry into target markets and enhance the visibility of your global business.
Extended product lifecycle: Products with waning popularity at home may find renewed interest in international markets. New audiences allow a business to extend the revenue-generating potential of its offerings.
Product/service diversification: Expanding globally allows businesses to tweak their products or services to match local tastes, often leading to fresh ideas that can pay off back home. For example, McDonald’s added Teriyaki burgers to their menu in Japan, boosting sales locally and inspiring creative menu changes in other target markets.
Increased revenue streams: International markets unlock new opportunities to generate income. With a wider audience, businesses can rely on multiple sources of revenue to achieve steady financial growth, further propelling their growth.
Decreased market dependency: Business expansion allows your organization to reduce reliance on a single target market, protecting it against regional economic fluctuations. Your company can remain stable if something drastic happens in your domestic economy.

8 potential challenges of international expansion strategies

Here are some common hurdles for businesses expanding into international markets and how to overcome them:

Cultural differences: New markets often come with entirely different cultures. Misinterpreting local customs or values creates barriers to connection with your audience. Businesses should perform thorough market research and hire local experts to help align their products, messaging, and practices with regional expectations.
Regulatory compliance: Legal requirements differ between markets. Global businesses must understand and comply with these local regulations to avoid legal setbacks and maintain ethical practices. Partnering with local legal advisors can simplify this process. For international hiring, an Employer of Record (EOR) can handle administrative tasks like payroll, taxes, and benefits compliance.
Language barriers: Poor translation will hamper relationships with customers and partners. Global businesses should invest in professional translation services to localize their company materials and documents to avoid miscommunication.
Logistical complexities: Supply chains and distribution across borders pose unique challenges that can create delays and increase costs. You can mitigate risk by partnering with local logistics providers that offer tech solutions to track shipments and optimize operations.
Market saturation: A newly expanding business may struggle to stand out in a target market with strong competitors. Market research can identify gaps or underserved customer needs your business can fulfill.
Currency fluctuations: Changing exchange rates can affect your bottom line. Protect your profits by adopting financial hedging strategies or working with international banking services to stabilize transactions.
Cultural resistance to foreign brands: Some regions may prefer local companies over foreign entrants. Build trust by adapting your branding, products, and customer service to connect with local values and preferences.
High operational costs: Expanding into new countries can strain budgets, especially during the initial setup phase. Start with scalable solutions like partnerships or remote teams to minimize costs while you test the market.

11 steps to build a strategy for international expansion

Here’s a simple step-by-step guide to create your own international strategy:

Define your goals: Be clear about what you want to achieve when expanding internationally. Whether you’re increasing revenue, growing your customer base, or diversifying your operations by hiring new talent, your goals will guide the entire process.
Conduct market research: Learn everything you can about the markets you’re considering entering, including customer needs, cultural expectations, and local competitors. Thorough research informs a strong market entry strategy that suits the region. Without it, you may misinterpret local customs or values, potentially damaging your reputation.
Choose your target market: Not every market is right for your business. Focus on regions with built-in demand for your product or service where you can offer something unique.
Develop a localization plan: Adapt your products, marketing, and website to match the local culture so your brand feels more authentic. Translation and localization are significant undertakings, but they’re necessary to connect with new audiences. Translation technology, such as Smartling’s AI Translation solution, can help you translate text in minutes instead of waiting days or weeks for translations with traditional methods. By blending the powers of large language models and neural machine translation, Smartling provides fast, affordable, and high-quality translations.
Evaluate regulatory requirements: Research laws and regulations in the new market. Partnerships with local legal experts save time and prevent costly mistakes.
Plan your market entry: Decide how you’ll enter the market—whether through direct sales, partnerships, or setting up local offices. Each approach has pros and cons, so choose one that fits your goals and resources.
Build a local team: Hiring local talent helps you understand the market better and connect with customers. A local team also builds credibility and trust in the region.
Set pricing: Research local pricing norms and adjust your rates to stay competitive while maintaining profitability.
Establish strong partnerships: Partner with local distributors or service providers to expand your network and strengthen your presence in the new market. New partnerships help you deliver solutions while gaining practical insights from companies that have succeeded in the region.
Test your strategy: A strategy that works domestically won’t necessarily work in a new market. Start with a small-scale launch to gather feedback and adjust your plan before fully committing.
Monitor and adapt: Global expansion isn’t a one-and-done effort. Track progress, listen to feedback, and be ready to adjust your strategy as the market evolves.

Smartling helps you expand globally

Here, we’ll explain what the purpose of global expansion is, its benefits and challenges, and strategies for international expansion.

What is global expansion?

Key benefits of implementing global expansion strategies

Here are some of the most significant advantages businesses can gain from global expansion:

Economies of scale: Economies of scale refer to the cost advantages businesses gain when production increases, allowing them to lower the cost per unit and mitigate risk. Expanding globally enables a business to produce larger quantities and spread fixed costs.
Access to resources: When your business expands internationally, you don’t just get access to new customers but also to raw materials, skilled local talent, and specialized expertise.
Strategic business partnerships: New markets enable collaborations with local companies. These partnerships can simplify entry into target markets and enhance the visibility of your global business.
Extended product lifecycle: Products with waning popularity at home may find renewed interest in international markets. New audiences allow a business to extend the revenue-generating potential of its offerings.
Product/service diversification: Expanding globally allows businesses to tweak their products or services to match local tastes, often leading to fresh ideas that can pay off back home. For example, McDonald’s added Teriyaki burgers to their menu in Japan, boosting sales locally and inspiring creative menu changes in other target markets.
Increased revenue streams: International markets unlock new opportunities to generate income. With a wider audience, businesses can rely on multiple sources of revenue to achieve steady financial growth, further propelling their growth.
Decreased market dependency: Business expansion allows your organization to reduce reliance on a single target market, protecting it against regional economic fluctuations. Your company can remain stable if something drastic happens in your domestic economy.

8 potential challenges of international expansion strategies

Here are some common hurdles for businesses expanding into international markets and how to overcome them:

Cultural differences: New markets often come with entirely different cultures. Misinterpreting local customs or values creates barriers to connection with your audience. Businesses should perform thorough market research and hire local experts to help align their products, messaging, and practices with regional expectations.
Regulatory compliance: Legal requirements differ between markets. Global businesses must understand and comply with these local regulations to avoid legal setbacks and maintain ethical practices. Partnering with local legal advisors can simplify this process. For international hiring, an Employer of Record (EOR) can handle administrative tasks like payroll, taxes, and benefits compliance.
Language barriers: Poor translation will hamper relationships with customers and partners. Global businesses should invest in professional translation services to localize their company materials and documents to avoid miscommunication.
Logistical complexities: Supply chains and distribution across borders pose unique challenges that can create delays and increase costs. You can mitigate risk by partnering with local logistics providers that offer tech solutions to track shipments and optimize operations.
Market saturation: A newly expanding business may struggle to stand out in a target market with strong competitors. Market research can identify gaps or underserved customer needs your business can fulfill.
Currency fluctuations: Changing exchange rates can affect your bottom line. Protect your profits by adopting financial hedging strategies or working with international banking services to stabilize transactions.
Cultural resistance to foreign brands: Some regions may prefer local companies over foreign entrants. Build trust by adapting your branding, products, and customer service to connect with local values and preferences.
High operational costs: Expanding into new countries can strain budgets, especially during the initial setup phase. Start with scalable solutions like partnerships or remote teams to minimize costs while you test the market.

11 steps to build a strategy for international expansion

Here’s a simple step-by-step guide to create your own international strategy:

Define your goals: Be clear about what you want to achieve when expanding internationally. Whether you’re increasing revenue, growing your customer base, or diversifying your operations by hiring new talent, your goals will guide the entire process.
Conduct market research: Learn everything you can about the markets you’re considering entering, including customer needs, cultural expectations, and local competitors. Thorough research informs a strong market entry strategy that suits the region. Without it, you may misinterpret local customs or values, potentially damaging your reputation.
Choose your target market: Not every market is right for your business. Focus on regions with built-in demand for your product or service where you can offer something unique.
Develop a localization plan: Adapt your products, marketing, and website to match the local culture so your brand feels more authentic. Translation and localization are significant undertakings, but they’re necessary to connect with new audiences. Translation technology, such as Smartling’s AI Translation solution, can help you translate text in minutes instead of waiting days or weeks for translations with traditional methods. By blending the powers of large language models and neural machine translation, Smartling provides fast, affordable, and high-quality translations.
Evaluate regulatory requirements: Research laws and regulations in the new market. Partnerships with local legal experts save time and prevent costly mistakes.
Plan your market entry: Decide how you’ll enter the market—whether through direct sales, partnerships, or setting up local offices. Each approach has pros and cons, so choose one that fits your goals and resources.
Build a local team: Hiring local talent helps you understand the market better and connect with customers. A local team also builds credibility and trust in the region.
Set pricing: Research local pricing norms and adjust your rates to stay competitive while maintaining profitability.
Establish strong partnerships: Partner with local distributors or service providers to expand your network and strengthen your presence in the new market. New partnerships help you deliver solutions while gaining practical insights from companies that have succeeded in the region.
Test your strategy: A strategy that works domestically won’t necessarily work in a new market. Start with a small-scale launch to gather feedback and adjust your plan before fully committing.
Monitor and adapt: Global expansion isn’t a one-and-done effort. Track progress, listen to feedback, and be ready to adjust your strategy as the market evolves.

Smartling helps you expand globally

Here, we’ll explain what the purpose of global expansion is, its benefits and challenges, and strategies for international expansion.

What is global expansion?

Key benefits of implementing global expansion strategies

Here are some of the most significant advantages businesses can gain from global expansion:

Economies of scale: Economies of scale refer to the cost advantages businesses gain when production increases, allowing them to lower the cost per unit and mitigate risk. Expanding globally enables a business to produce larger quantities and spread fixed costs.
Access to resources: When your business expands internationally, you don’t just get access to new customers but also to raw materials, skilled local talent, and specialized expertise.
Strategic business partnerships: New markets enable collaborations with local companies. These partnerships can simplify entry into target markets and enhance the visibility of your global business.
Extended product lifecycle: Products with waning popularity at home may find renewed interest in international markets. New audiences allow a business to extend the revenue-generating potential of its offerings.
Product/service diversification: Expanding globally allows businesses to tweak their products or services to match local tastes, often leading to fresh ideas that can pay off back home. For example, McDonald’s added Teriyaki burgers to their menu in Japan, boosting sales locally and inspiring creative menu changes in other target markets.
Increased revenue streams: International markets unlock new opportunities to generate income. With a wider audience, businesses can rely on multiple sources of revenue to achieve steady financial growth, further propelling their growth.
Decreased market dependency: Business expansion allows your organization to reduce reliance on a single target market, protecting it against regional economic fluctuations. Your company can remain stable if something drastic happens in your domestic economy.

8 potential challenges of international expansion strategies

Here are some common hurdles for businesses expanding into international markets and how to overcome them:

Cultural differences: New markets often come with entirely different cultures. Misinterpreting local customs or values creates barriers to connection with your audience. Businesses should perform thorough market research and hire local experts to help align their products, messaging, and practices with regional expectations.
Regulatory compliance: Legal requirements differ between markets. Global businesses must understand and comply with these local regulations to avoid legal setbacks and maintain ethical practices. Partnering with local legal advisors can simplify this process. For international hiring, an Employer of Record (EOR) can handle administrative tasks like payroll, taxes, and benefits compliance.
Language barriers: Poor translation will hamper relationships with customers and partners. Global businesses should invest in professional translation services to localize their company materials and documents to avoid miscommunication.
Logistical complexities: Supply chains and distribution across borders pose unique challenges that can create delays and increase costs. You can mitigate risk by partnering with local logistics providers that offer tech solutions to track shipments and optimize operations.
Market saturation: A newly expanding business may struggle to stand out in a target market with strong competitors. Market research can identify gaps or underserved customer needs your business can fulfill.
Currency fluctuations: Changing exchange rates can affect your bottom line. Protect your profits by adopting financial hedging strategies or working with international banking services to stabilize transactions.
Cultural resistance to foreign brands: Some regions may prefer local companies over foreign entrants. Build trust by adapting your branding, products, and customer service to connect with local values and preferences.
High operational costs: Expanding into new countries can strain budgets, especially during the initial setup phase. Start with scalable solutions like partnerships or remote teams to minimize costs while you test the market.

11 steps to build a strategy for international expansion

Here’s a simple step-by-step guide to create your own international strategy:

Define your goals: Be clear about what you want to achieve when expanding internationally. Whether you’re increasing revenue, growing your customer base, or diversifying your operations by hiring new talent, your goals will guide the entire process.
Conduct market research: Learn everything you can about the markets you’re considering entering, including customer needs, cultural expectations, and local competitors. Thorough research informs a strong market entry strategy that suits the region. Without it, you may misinterpret local customs or values, potentially damaging your reputation.
Choose your target market: Not every market is right for your business. Focus on regions with built-in demand for your product or service where you can offer something unique.
Develop a localization plan: Adapt your products, marketing, and website to match the local culture so your brand feels more authentic. Translation and localization are significant undertakings, but they’re necessary to connect with new audiences. Translation technology, such as Smartling’s AI Translation solution, can help you translate text in minutes instead of waiting days or weeks for translations with traditional methods. By blending the powers of large language models and neural machine translation, Smartling provides fast, affordable, and high-quality translations.
Evaluate regulatory requirements: Research laws and regulations in the new market. Partnerships with local legal experts save time and prevent costly mistakes.
Plan your market entry: Decide how you’ll enter the market—whether through direct sales, partnerships, or setting up local offices. Each approach has pros and cons, so choose one that fits your goals and resources.
Build a local team: Hiring local talent helps you understand the market better and connect with customers. A local team also builds credibility and trust in the region.
Set pricing: Research local pricing norms and adjust your rates to stay competitive while maintaining profitability.
Establish strong partnerships: Partner with local distributors or service providers to expand your network and strengthen your presence in the new market. New partnerships help you deliver solutions while gaining practical insights from companies that have succeeded in the region.
Test your strategy: A strategy that works domestically won’t necessarily work in a new market. Start with a small-scale launch to gather feedback and adjust your plan before fully committing.
Monitor and adapt: Global expansion isn’t a one-and-done effort. Track progress, listen to feedback, and be ready to adjust your strategy as the market evolves.

Smartling helps you expand globally

Here, we’ll explain what the purpose of global expansion is, its benefits and challenges, and strategies for international expansion.

What is global expansion?

Key benefits of implementing global expansion strategies

Here are some of the most significant advantages businesses can gain from global expansion:

Economies of scale: Economies of scale refer to the cost advantages businesses gain when production increases, allowing them to lower the cost per unit and mitigate risk. Expanding globally enables a business to produce larger quantities and spread fixed costs.
Access to resources: When your business expands internationally, you don’t just get access to new customers but also to raw materials, skilled local talent, and specialized expertise.
Strategic business partnerships: New markets enable collaborations with local companies. These partnerships can simplify entry into target markets and enhance the visibility of your global business.
Extended product lifecycle: Products with waning popularity at home may find renewed interest in international markets. New audiences allow a business to extend the revenue-generating potential of its offerings.
Product/service diversification: Expanding globally allows businesses to tweak their products or services to match local tastes, often leading to fresh ideas that can pay off back home. For example, McDonald’s added Teriyaki burgers to their menu in Japan, boosting sales locally and inspiring creative menu changes in other target markets.
Increased revenue streams: International markets unlock new opportunities to generate income. With a wider audience, businesses can rely on multiple sources of revenue to achieve steady financial growth, further propelling their growth.
Decreased market dependency: Business expansion allows your organization to reduce reliance on a single target market, protecting it against regional economic fluctuations. Your company can remain stable if something drastic happens in your domestic economy.

8 potential challenges of international expansion strategies

Here are some common hurdles for businesses expanding into international markets and how to overcome them:

Cultural differences: New markets often come with entirely different cultures. Misinterpreting local customs or values creates barriers to connection with your audience. Businesses should perform thorough market research and hire local experts to help align their products, messaging, and practices with regional expectations.
Regulatory compliance: Legal requirements differ between markets. Global businesses must understand and comply with these local regulations to avoid legal setbacks and maintain ethical practices. Partnering with local legal advisors can simplify this process. For international hiring, an Employer of Record (EOR) can handle administrative tasks like payroll, taxes, and benefits compliance.
Language barriers: Poor translation will hamper relationships with customers and partners. Global businesses should invest in professional translation services to localize their company materials and documents to avoid miscommunication.
Logistical complexities: Supply chains and distribution across borders pose unique challenges that can create delays and increase costs. You can mitigate risk by partnering with local logistics providers that offer tech solutions to track shipments and optimize operations.
Market saturation: A newly expanding business may struggle to stand out in a target market with strong competitors. Market research can identify gaps or underserved customer needs your business can fulfill.
Currency fluctuations: Changing exchange rates can affect your bottom line. Protect your profits by adopting financial hedging strategies or working with international banking services to stabilize transactions.
Cultural resistance to foreign brands: Some regions may prefer local companies over foreign entrants. Build trust by adapting your branding, products, and customer service to connect with local values and preferences.
High operational costs: Expanding into new countries can strain budgets, especially during the initial setup phase. Start with scalable solutions like partnerships or remote teams to minimize costs while you test the market.

11 steps to build a strategy for international expansion

Here’s a simple step-by-step guide to create your own international strategy:

Define your goals: Be clear about what you want to achieve when expanding internationally. Whether you’re increasing revenue, growing your customer base, or diversifying your operations by hiring new talent, your goals will guide the entire process.
Conduct market research: Learn everything you can about the markets you’re considering entering, including customer needs, cultural expectations, and local competitors. Thorough research informs a strong market entry strategy that suits the region. Without it, you may misinterpret local customs or values, potentially damaging your reputation.
Choose your target market: Not every market is right for your business. Focus on regions with built-in demand for your product or service where you can offer something unique.
Develop a localization plan: Adapt your products, marketing, and website to match the local culture so your brand feels more authentic. Translation and localization are significant undertakings, but they’re necessary to connect with new audiences. Translation technology, such as Smartling’s AI Translation solution, can help you translate text in minutes instead of waiting days or weeks for translations with traditional methods. By blending the powers of large language models and neural machine translation, Smartling provides fast, affordable, and high-quality translations.
Evaluate regulatory requirements: Research laws and regulations in the new market. Partnerships with local legal experts save time and prevent costly mistakes.
Plan your market entry: Decide how you’ll enter the market—whether through direct sales, partnerships, or setting up local offices. Each approach has pros and cons, so choose one that fits your goals and resources.
Build a local team: Hiring local talent helps you understand the market better and connect with customers. A local team also builds credibility and trust in the region.
Set pricing: Research local pricing norms and adjust your rates to stay competitive while maintaining profitability.
Establish strong partnerships: Partner with local distributors or service providers to expand your network and strengthen your presence in the new market. New partnerships help you deliver solutions while gaining practical insights from companies that have succeeded in the region.
Test your strategy: A strategy that works domestically won’t necessarily work in a new market. Start with a small-scale launch to gather feedback and adjust your plan before fully committing.
Monitor and adapt: Global expansion isn’t a one-and-done effort. Track progress, listen to feedback, and be ready to adjust your strategy as the market evolves.

Smartling helps you expand globally

Here, we’ll explain what the purpose of global expansion is, its benefits and challenges, and strategies for international expansion.

What is global expansion?

Key benefits of implementing global expansion strategies

Here are some of the most significant advantages businesses can gain from global expansion:

Economies of scale: Economies of scale refer to the cost advantages businesses gain when production increases, allowing them to lower the cost per unit and mitigate risk. Expanding globally enables a business to produce larger quantities and spread fixed costs.
Access to resources: When your business expands internationally, you don’t just get access to new customers but also to raw materials, skilled local talent, and specialized expertise.
Strategic business partnerships: New markets enable collaborations with local companies. These partnerships can simplify entry into target markets and enhance the visibility of your global business.
Extended product lifecycle: Products with waning popularity at home may find renewed interest in international markets. New audiences allow a business to extend the revenue-generating potential of its offerings.
Product/service diversification: Expanding globally allows businesses to tweak their products or services to match local tastes, often leading to fresh ideas that can pay off back home. For example, McDonald’s added Teriyaki burgers to their menu in Japan, boosting sales locally and inspiring creative menu changes in other target markets.
Increased revenue streams: International markets unlock new opportunities to generate income. With a wider audience, businesses can rely on multiple sources of revenue to achieve steady financial growth, further propelling their growth.
Decreased market dependency: Business expansion allows your organization to reduce reliance on a single target market, protecting it against regional economic fluctuations. Your company can remain stable if something drastic happens in your domestic economy.

8 potential challenges of international expansion strategies

Here are some common hurdles for businesses expanding into international markets and how to overcome them:

Cultural differences: New markets often come with entirely different cultures. Misinterpreting local customs or values creates barriers to connection with your audience. Businesses should perform thorough market research and hire local experts to help align their products, messaging, and practices with regional expectations.
Regulatory compliance: Legal requirements differ between markets. Global businesses must understand and comply with these local regulations to avoid legal setbacks and maintain ethical practices. Partnering with local legal advisors can simplify this process. For international hiring, an Employer of Record (EOR) can handle administrative tasks like payroll, taxes, and benefits compliance.
Language barriers: Poor translation will hamper relationships with customers and partners. Global businesses should invest in professional translation services to localize their company materials and documents to avoid miscommunication.
Logistical complexities: Supply chains and distribution across borders pose unique challenges that can create delays and increase costs. You can mitigate risk by partnering with local logistics providers that offer tech solutions to track shipments and optimize operations.
Market saturation: A newly expanding business may struggle to stand out in a target market with strong competitors. Market research can identify gaps or underserved customer needs your business can fulfill.
Currency fluctuations: Changing exchange rates can affect your bottom line. Protect your profits by adopting financial hedging strategies or working with international banking services to stabilize transactions.
Cultural resistance to foreign brands: Some regions may prefer local companies over foreign entrants. Build trust by adapting your branding, products, and customer service to connect with local values and preferences.
High operational costs: Expanding into new countries can strain budgets, especially during the initial setup phase. Start with scalable solutions like partnerships or remote teams to minimize costs while you test the market.

11 steps to build a strategy for international expansion

Here’s a simple step-by-step guide to create your own international strategy:

Define your goals: Be clear about what you want to achieve when expanding internationally. Whether you’re increasing revenue, growing your customer base, or diversifying your operations by hiring new talent, your goals will guide the entire process.
Conduct market research: Learn everything you can about the markets you’re considering entering, including customer needs, cultural expectations, and local competitors. Thorough research informs a strong market entry strategy that suits the region. Without it, you may misinterpret local customs or values, potentially damaging your reputation.
Choose your target market: Not every market is right for your business. Focus on regions with built-in demand for your product or service where you can offer something unique.
Develop a localization plan: Adapt your products, marketing, and website to match the local culture so your brand feels more authentic. Translation and localization are significant undertakings, but they’re necessary to connect with new audiences. Translation technology, such as Smartling’s AI Translation solution, can help you translate text in minutes instead of waiting days or weeks for translations with traditional methods. By blending the powers of large language models and neural machine translation, Smartling provides fast, affordable, and high-quality translations.
Evaluate regulatory requirements: Research laws and regulations in the new market. Partnerships with local legal experts save time and prevent costly mistakes.
Plan your market entry: Decide how you’ll enter the market—whether through direct sales, partnerships, or setting up local offices. Each approach has pros and cons, so choose one that fits your goals and resources.
Build a local team: Hiring local talent helps you understand the market better and connect with customers. A local team also builds credibility and trust in the region.
Set pricing: Research local pricing norms and adjust your rates to stay competitive while maintaining profitability.
Establish strong partnerships: Partner with local distributors or service providers to expand your network and strengthen your presence in the new market. New partnerships help you deliver solutions while gaining practical insights from companies that have succeeded in the region.
Test your strategy: A strategy that works domestically won’t necessarily work in a new market. Start with a small-scale launch to gather feedback and adjust your plan before fully committing.
Monitor and adapt: Global expansion isn’t a one-and-done effort. Track progress, listen to feedback, and be ready to adjust your strategy as the market evolves.

Smartling helps you expand globally

Want to learn how to achieve high-performing translation outcomes? Download our free eBook, “What to Look for in a Translation Solution: A Buyer’s Guide,” which explains what to look for from translation solution providers. You’ll get insider tips on using workflow automation to simplify your translation processes and learn best practices to accelerate and enhance your localization efforts.Expanding your business into international markets requires more than ambition. You’ll need strategy, adaptability, and a clear understanding of foreign markets. When done correctly, your business will access new talent, reduce dependency on a single market, and gain a competitive edge.
Here, we’ll explain what the purpose of global expansion is, its benefits and challenges, and strategies for international expansion.
What is global expansion?
When a business undergoes global expansion, it extends operations beyond domestic borders, establishing a presence in foreign markets. Proven global expansion strategies allow companies to access new customer bases, diversify revenue streams, and enhance brand recognition internationally. International expansion strategies vary depending on the company and the global market.
Global trade was on pace to hit a record $33 trillion in 2024, with services alone growing by 7%. With developing countries like India, Indonesia, and China establishing stronger economies, there are plenty of opportunities for business expansion.
Key benefits of implementing global expansion strategies
Careful international expansion of your business offers numerous benefits that position you for long-term success—reaching new markets, tapping into fresh resources, strengthening supply chains, and lowering costs.
Here are some of the most significant advantages businesses can gain from global expansion:
Economies of scale: Economies of scale refer to the cost advantages businesses gain when production increases, allowing them to lower the cost per unit and mitigate risk. Expanding globally enables a business to produce larger quantities and spread fixed costs.
Access to resources: When your business expands internationally, you don’t just get access to new customers but also to raw materials, skilled local talent, and specialized expertise.
Strategic business partnerships: New markets enable collaborations with local companies. These partnerships can simplify entry into target markets and enhance the visibility of your global business.
Extended product lifecycle: Products with waning popularity at home may find renewed interest in international markets. New audiences allow a business to extend the revenue-generating potential of its offerings.
Product/service diversification: Expanding globally allows businesses to tweak their products or services to match local tastes, often leading to fresh ideas that can pay off back home. For example, McDonald’s added Teriyaki burgers to their menu in Japan, boosting sales locally and inspiring creative menu changes in other target markets.
Increased revenue streams: International markets unlock new opportunities to generate income. With a wider audience, businesses can rely on multiple sources of revenue to achieve steady financial growth, further propelling their growth.
Decreased market dependency: Business expansion allows your organization to reduce reliance on a single target market, protecting it against regional economic fluctuations. Your company can remain stable if something drastic happens in your domestic economy.
8 potential challenges of international expansion strategies
Expanding into international markets brings distinct challenges unlike those in domestic markets. Although the upsides make it worth exploring, businesses must remain vigilant to avoid financial losses, legal trouble, or a tarnished reputation.
Here are some common hurdles for businesses expanding into international markets and how to overcome them:
Cultural differences: New markets often come with entirely different cultures. Misinterpreting local customs or values creates barriers to connection with your audience. Businesses should perform thorough market research and hire local experts to help align their products, messaging, and practices with regional expectations.
Regulatory compliance: Legal requirements differ between markets. Global businesses must understand and comply with these local regulations to avoid legal setbacks and maintain ethical practices. Partnering with local legal advisors can simplify this process. For international hiring, an Employer of Record (EOR) can handle administrative tasks like payroll, taxes, and benefits compliance.
Language barriers: Poor translation will hamper relationships with customers and partners. Global businesses should invest in professional translation services to localize their company materials and documents to avoid miscommunication.
Logistical complexities: Supply chains and distribution across borders pose unique challenges that can create delays and increase costs. You can mitigate risk by partnering with local logistics providers that offer tech solutions to track shipments and optimize operations.
Market saturation: A newly expanding business may struggle to stand out in a target market with strong competitors. Market research can identify gaps or underserved customer needs your business can fulfill.
Currency fluctuations: Changing exchange rates can affect your bottom line. Protect your profits by adopting financial hedging strategies or working with international banking services to stabilize transactions.
Cultural resistance to foreign brands: Some regions may prefer local companies over foreign entrants. Build trust by adapting your branding, products, and customer service to connect with local values and preferences.
High operational costs: Expanding into new countries can strain budgets, especially during the initial setup phase. Start with scalable solutions like partnerships or remote teams to minimize costs while you test the market.
11 steps to build a strategy for international expansion
Building an international expansion plan is the first step to successfully going global. A strong market entry strategy helps your business navigate new markets, tackle localization challenges, and leverage opportunities. Each step lays the foundation for long-term success, so it’s essential to approach expansion with a clear direction.
Here’s a simple step-by-step guide to create your own international strategy:
Define your goals: Be clear about what you want to achieve when expanding internationally. Whether you’re increasing revenue, growing your customer base, or diversifying your operations by hiring new talent, your goals will guide the entire process.
Conduct market research: Learn everything you can about the markets you’re considering entering, including customer needs, cultural expectations, and local competitors. Thorough research informs a strong market entry strategy that suits the region. Without it, you may misinterpret local customs or values, potentially damaging your reputation.
Choose your target market: Not every market is right for your business. Focus on regions with built-in demand for your product or service where you can offer something unique.
Develop a localization plan: Adapt your products, marketing, and website to match the local culture so your brand feels more authentic. Translation and localization are significant undertakings, but they’re necessary to connect with new audiences. Translation technology, such as Smartling’s AI Translation solution, can help you translate text in minutes instead of waiting days or weeks for translations with traditional methods. By blending the powers of large language models and neural machine translation, Smartling provides fast, affordable, and high-quality translations.
Evaluate regulatory requirements: Research laws and regulations in the new market. Partnerships with local legal experts save time and prevent costly mistakes.
Plan your market entry: Decide how you’ll enter the market—whether through direct sales, partnerships, or setting up local offices. Each approach has pros and cons, so choose one that fits your goals and resources.
Build a local team: Hiring local talent helps you understand the market better and connect with customers. A local team also builds credibility and trust in the region.
Set pricing: Research local pricing norms and adjust your rates to stay competitive while maintaining profitability.
Establish strong partnerships: Partner with local distributors or service providers to expand your network and strengthen your presence in the new market. New partnerships help you deliver solutions while gaining practical insights from companies that have succeeded in the region.
Test your strategy: A strategy that works domestically won’t necessarily work in a new market. Start with a small-scale launch to gather feedback and adjust your plan before fully committing.
Monitor and adapt: Global expansion isn’t a one-and-done effort. Track progress, listen to feedback, and be ready to adjust your strategy as the market evolves.
Smartling helps you expand globally
Translating website content and customer support materials takes time and often incurs unnecessary overhead costs. Fortunately, the right tools allow your business to avoid costly errors and delays that stall your international expansion strategies.
Smartling’s AI Translation technology reduces your translation time from weeks or days to just hours or minutes. Not only that, but Smartling’s Translation Management System also easily integrates with your existing tech stack, like your content management system or your marketing automation platform, to make translation easy and efficient.
Want to learn how to achieve high-performing translation outcomes? Download our free eBook, “What to Look for in a Translation Solution: A Buyer’s Guide,” which explains what to look for from translation solution providers. You’ll get insider tips on using workflow automation to simplify your translation processes and learn best practices to accelerate and enhance your localization efforts.

Here, we’ll explain what the purpose of global expansion is, its benefits and challenges, and strategies for international expansion.

What is global expansion?

Key benefits of implementing global expansion strategies

Here are some of the most significant advantages businesses can gain from global expansion:

Economies of scale: Economies of scale refer to the cost advantages businesses gain when production increases, allowing them to lower the cost per unit and mitigate risk. Expanding globally enables a business to produce larger quantities and spread fixed costs.
Access to resources: When your business expands internationally, you don’t just get access to new customers but also to raw materials, skilled local talent, and specialized expertise.
Strategic business partnerships: New markets enable collaborations with local companies. These partnerships can simplify entry into target markets and enhance the visibility of your global business.
Extended product lifecycle: Products with waning popularity at home may find renewed interest in international markets. New audiences allow a business to extend the revenue-generating potential of its offerings.
Product/service diversification: Expanding globally allows businesses to tweak their products or services to match local tastes, often leading to fresh ideas that can pay off back home. For example, McDonald’s added Teriyaki burgers to their menu in Japan, boosting sales locally and inspiring creative menu changes in other target markets.
Increased revenue streams: International markets unlock new opportunities to generate income. With a wider audience, businesses can rely on multiple sources of revenue to achieve steady financial growth, further propelling their growth.
Decreased market dependency: Business expansion allows your organization to reduce reliance on a single target market, protecting it against regional economic fluctuations. Your company can remain stable if something drastic happens in your domestic economy.

8 potential challenges of international expansion strategies

Here are some common hurdles for businesses expanding into international markets and how to overcome them:

Cultural differences: New markets often come with entirely different cultures. Misinterpreting local customs or values creates barriers to connection with your audience. Businesses should perform thorough market research and hire local experts to help align their products, messaging, and practices with regional expectations.
Regulatory compliance: Legal requirements differ between markets. Global businesses must understand and comply with these local regulations to avoid legal setbacks and maintain ethical practices. Partnering with local legal advisors can simplify this process. For international hiring, an Employer of Record (EOR) can handle administrative tasks like payroll, taxes, and benefits compliance.
Language barriers: Poor translation will hamper relationships with customers and partners. Global businesses should invest in professional translation services to localize their company materials and documents to avoid miscommunication.
Logistical complexities: Supply chains and distribution across borders pose unique challenges that can create delays and increase costs. You can mitigate risk by partnering with local logistics providers that offer tech solutions to track shipments and optimize operations.
Market saturation: A newly expanding business may struggle to stand out in a target market with strong competitors. Market research can identify gaps or underserved customer needs your business can fulfill.
Currency fluctuations: Changing exchange rates can affect your bottom line. Protect your profits by adopting financial hedging strategies or working with international banking services to stabilize transactions.
Cultural resistance to foreign brands: Some regions may prefer local companies over foreign entrants. Build trust by adapting your branding, products, and customer service to connect with local values and preferences.
High operational costs: Expanding into new countries can strain budgets, especially during the initial setup phase. Start with scalable solutions like partnerships or remote teams to minimize costs while you test the market.

11 steps to build a strategy for international expansion

Here’s a simple step-by-step guide to create your own international strategy:

Define your goals: Be clear about what you want to achieve when expanding internationally. Whether you’re increasing revenue, growing your customer base, or diversifying your operations by hiring new talent, your goals will guide the entire process.
Conduct market research: Learn everything you can about the markets you’re considering entering, including customer needs, cultural expectations, and local competitors. Thorough research informs a strong market entry strategy that suits the region. Without it, you may misinterpret local customs or values, potentially damaging your reputation.
Choose your target market: Not every market is right for your business. Focus on regions with built-in demand for your product or service where you can offer something unique.
Develop a localization plan: Adapt your products, marketing, and website to match the local culture so your brand feels more authentic. Translation and localization are significant undertakings, but they’re necessary to connect with new audiences. Translation technology, such as Smartling’s AI Translation solution, can help you translate text in minutes instead of waiting days or weeks for translations with traditional methods. By blending the powers of large language models and neural machine translation, Smartling provides fast, affordable, and high-quality translations.
Evaluate regulatory requirements: Research laws and regulations in the new market. Partnerships with local legal experts save time and prevent costly mistakes.
Plan your market entry: Decide how you’ll enter the market—whether through direct sales, partnerships, or setting up local offices. Each approach has pros and cons, so choose one that fits your goals and resources.
Build a local team: Hiring local talent helps you understand the market better and connect with customers. A local team also builds credibility and trust in the region.
Set pricing: Research local pricing norms and adjust your rates to stay competitive while maintaining profitability.
Establish strong partnerships: Partner with local distributors or service providers to expand your network and strengthen your presence in the new market. New partnerships help you deliver solutions while gaining practical insights from companies that have succeeded in the region.
Test your strategy: A strategy that works domestically won’t necessarily work in a new market. Start with a small-scale launch to gather feedback and adjust your plan before fully committing.
Monitor and adapt: Global expansion isn’t a one-and-done effort. Track progress, listen to feedback, and be ready to adjust your strategy as the market evolves.

Smartling helps you expand globally

Here, we’ll explain what the purpose of global expansion is, its benefits and challenges, and strategies for international expansion.

What is global expansion?

Key benefits of implementing global expansion strategies

Here are some of the most significant advantages businesses can gain from global expansion:

Economies of scale: Economies of scale refer to the cost advantages businesses gain when production increases, allowing them to lower the cost per unit and mitigate risk. Expanding globally enables a business to produce larger quantities and spread fixed costs.
Access to resources: When your business expands internationally, you don’t just get access to new customers but also to raw materials, skilled local talent, and specialized expertise.
Strategic business partnerships: New markets enable collaborations with local companies. These partnerships can simplify entry into target markets and enhance the visibility of your global business.
Extended product lifecycle: Products with waning popularity at home may find renewed interest in international markets. New audiences allow a business to extend the revenue-generating potential of its offerings.
Product/service diversification: Expanding globally allows businesses to tweak their products or services to match local tastes, often leading to fresh ideas that can pay off back home. For example, McDonald’s added Teriyaki burgers to their menu in Japan, boosting sales locally and inspiring creative menu changes in other target markets.
Increased revenue streams: International markets unlock new opportunities to generate income. With a wider audience, businesses can rely on multiple sources of revenue to achieve steady financial growth, further propelling their growth.
Decreased market dependency: Business expansion allows your organization to reduce reliance on a single target market, protecting it against regional economic fluctuations. Your company can remain stable if something drastic happens in your domestic economy.

8 potential challenges of international expansion strategies

Here are some common hurdles for businesses expanding into international markets and how to overcome them:

Cultural differences: New markets often come with entirely different cultures. Misinterpreting local customs or values creates barriers to connection with your audience. Businesses should perform thorough market research and hire local experts to help align their products, messaging, and practices with regional expectations.
Regulatory compliance: Legal requirements differ between markets. Global businesses must understand and comply with these local regulations to avoid legal setbacks and maintain ethical practices. Partnering with local legal advisors can simplify this process. For international hiring, an Employer of Record (EOR) can handle administrative tasks like payroll, taxes, and benefits compliance.
Language barriers: Poor translation will hamper relationships with customers and partners. Global businesses should invest in professional translation services to localize their company materials and documents to avoid miscommunication.
Logistical complexities: Supply chains and distribution across borders pose unique challenges that can create delays and increase costs. You can mitigate risk by partnering with local logistics providers that offer tech solutions to track shipments and optimize operations.
Market saturation: A newly expanding business may struggle to stand out in a target market with strong competitors. Market research can identify gaps or underserved customer needs your business can fulfill.
Currency fluctuations: Changing exchange rates can affect your bottom line. Protect your profits by adopting financial hedging strategies or working with international banking services to stabilize transactions.
Cultural resistance to foreign brands: Some regions may prefer local companies over foreign entrants. Build trust by adapting your branding, products, and customer service to connect with local values and preferences.
High operational costs: Expanding into new countries can strain budgets, especially during the initial setup phase. Start with scalable solutions like partnerships or remote teams to minimize costs while you test the market.

11 steps to build a strategy for international expansion

Here’s a simple step-by-step guide to create your own international strategy:

Define your goals: Be clear about what you want to achieve when expanding internationally. Whether you’re increasing revenue, growing your customer base, or diversifying your operations by hiring new talent, your goals will guide the entire process.
Conduct market research: Learn everything you can about the markets you’re considering entering, including customer needs, cultural expectations, and local competitors. Thorough research informs a strong market entry strategy that suits the region. Without it, you may misinterpret local customs or values, potentially damaging your reputation.
Choose your target market: Not every market is right for your business. Focus on regions with built-in demand for your product or service where you can offer something unique.
Develop a localization plan: Adapt your products, marketing, and website to match the local culture so your brand feels more authentic. Translation and localization are significant undertakings, but they’re necessary to connect with new audiences. Translation technology, such as Smartling’s AI Translation solution, can help you translate text in minutes instead of waiting days or weeks for translations with traditional methods. By blending the powers of large language models and neural machine translation, Smartling provides fast, affordable, and high-quality translations.
Evaluate regulatory requirements: Research laws and regulations in the new market. Partnerships with local legal experts save time and prevent costly mistakes.
Plan your market entry: Decide how you’ll enter the market—whether through direct sales, partnerships, or setting up local offices. Each approach has pros and cons, so choose one that fits your goals and resources.
Build a local team: Hiring local talent helps you understand the market better and connect with customers. A local team also builds credibility and trust in the region.
Set pricing: Research local pricing norms and adjust your rates to stay competitive while maintaining profitability.
Establish strong partnerships: Partner with local distributors or service providers to expand your network and strengthen your presence in the new market. New partnerships help you deliver solutions while gaining practical insights from companies that have succeeded in the region.
Test your strategy: A strategy that works domestically won’t necessarily work in a new market. Start with a small-scale launch to gather feedback and adjust your plan before fully committing.
Monitor and adapt: Global expansion isn’t a one-and-done effort. Track progress, listen to feedback, and be ready to adjust your strategy as the market evolves.

Smartling helps you expand globally

Here, we’ll explain what the purpose of global expansion is, its benefits and challenges, and strategies for international expansion.

What is global expansion?

Key benefits of implementing global expansion strategies

Here are some of the most significant advantages businesses can gain from global expansion:

Economies of scale: Economies of scale refer to the cost advantages businesses gain when production increases, allowing them to lower the cost per unit and mitigate risk. Expanding globally enables a business to produce larger quantities and spread fixed costs.
Access to resources: When your business expands internationally, you don’t just get access to new customers but also to raw materials, skilled local talent, and specialized expertise.
Strategic business partnerships: New markets enable collaborations with local companies. These partnerships can simplify entry into target markets and enhance the visibility of your global business.
Extended product lifecycle: Products with waning popularity at home may find renewed interest in international markets. New audiences allow a business to extend the revenue-generating potential of its offerings.
Product/service diversification: Expanding globally allows businesses to tweak their products or services to match local tastes, often leading to fresh ideas that can pay off back home. For example, McDonald’s added Teriyaki burgers to their menu in Japan, boosting sales locally and inspiring creative menu changes in other target markets.
Increased revenue streams: International markets unlock new opportunities to generate income. With a wider audience, businesses can rely on multiple sources of revenue to achieve steady financial growth, further propelling their growth.
Decreased market dependency: Business expansion allows your organization to reduce reliance on a single target market, protecting it against regional economic fluctuations. Your company can remain stable if something drastic happens in your domestic economy.

8 potential challenges of international expansion strategies

Here are some common hurdles for businesses expanding into international markets and how to overcome them:

Cultural differences: New markets often come with entirely different cultures. Misinterpreting local customs or values creates barriers to connection with your audience. Businesses should perform thorough market research and hire local experts to help align their products, messaging, and practices with regional expectations.
Regulatory compliance: Legal requirements differ between markets. Global businesses must understand and comply with these local regulations to avoid legal setbacks and maintain ethical practices. Partnering with local legal advisors can simplify this process. For international hiring, an Employer of Record (EOR) can handle administrative tasks like payroll, taxes, and benefits compliance.
Language barriers: Poor translation will hamper relationships with customers and partners. Global businesses should invest in professional translation services to localize their company materials and documents to avoid miscommunication.
Logistical complexities: Supply chains and distribution across borders pose unique challenges that can create delays and increase costs. You can mitigate risk by partnering with local logistics providers that offer tech solutions to track shipments and optimize operations.
Market saturation: A newly expanding business may struggle to stand out in a target market with strong competitors. Market research can identify gaps or underserved customer needs your business can fulfill.
Currency fluctuations: Changing exchange rates can affect your bottom line. Protect your profits by adopting financial hedging strategies or working with international banking services to stabilize transactions.
Cultural resistance to foreign brands: Some regions may prefer local companies over foreign entrants. Build trust by adapting your branding, products, and customer service to connect with local values and preferences.
High operational costs: Expanding into new countries can strain budgets, especially during the initial setup phase. Start with scalable solutions like partnerships or remote teams to minimize costs while you test the market.

11 steps to build a strategy for international expansion

Here’s a simple step-by-step guide to create your own international strategy:

Define your goals: Be clear about what you want to achieve when expanding internationally. Whether you’re increasing revenue, growing your customer base, or diversifying your operations by hiring new talent, your goals will guide the entire process.
Conduct market research: Learn everything you can about the markets you’re considering entering, including customer needs, cultural expectations, and local competitors. Thorough research informs a strong market entry strategy that suits the region. Without it, you may misinterpret local customs or values, potentially damaging your reputation.
Choose your target market: Not every market is right for your business. Focus on regions with built-in demand for your product or service where you can offer something unique.
Develop a localization plan: Adapt your products, marketing, and website to match the local culture so your brand feels more authentic. Translation and localization are significant undertakings, but they’re necessary to connect with new audiences. Translation technology, such as Smartling’s AI Translation solution, can help you translate text in minutes instead of waiting days or weeks for translations with traditional methods. By blending the powers of large language models and neural machine translation, Smartling provides fast, affordable, and high-quality translations.
Evaluate regulatory requirements: Research laws and regulations in the new market. Partnerships with local legal experts save time and prevent costly mistakes.
Plan your market entry: Decide how you’ll enter the market—whether through direct sales, partnerships, or setting up local offices. Each approach has pros and cons, so choose one that fits your goals and resources.
Build a local team: Hiring local talent helps you understand the market better and connect with customers. A local team also builds credibility and trust in the region.
Set pricing: Research local pricing norms and adjust your rates to stay competitive while maintaining profitability.
Establish strong partnerships: Partner with local distributors or service providers to expand your network and strengthen your presence in the new market. New partnerships help you deliver solutions while gaining practical insights from companies that have succeeded in the region.
Test your strategy: A strategy that works domestically won’t necessarily work in a new market. Start with a small-scale launch to gather feedback and adjust your plan before fully committing.
Monitor and adapt: Global expansion isn’t a one-and-done effort. Track progress, listen to feedback, and be ready to adjust your strategy as the market evolves.

Smartling helps you expand globally

Here, we’ll explain what the purpose of global expansion is, its benefits and challenges, and strategies for international expansion.

What is global expansion?

Key benefits of implementing global expansion strategies

Here are some of the most significant advantages businesses can gain from global expansion:

Economies of scale: Economies of scale refer to the cost advantages businesses gain when production increases, allowing them to lower the cost per unit and mitigate risk. Expanding globally enables a business to produce larger quantities and spread fixed costs.
Access to resources: When your business expands internationally, you don’t just get access to new customers but also to raw materials, skilled local talent, and specialized expertise.
Strategic business partnerships: New markets enable collaborations with local companies. These partnerships can simplify entry into target markets and enhance the visibility of your global business.
Extended product lifecycle: Products with waning popularity at home may find renewed interest in international markets. New audiences allow a business to extend the revenue-generating potential of its offerings.
Product/service diversification: Expanding globally allows businesses to tweak their products or services to match local tastes, often leading to fresh ideas that can pay off back home. For example, McDonald’s added Teriyaki burgers to their menu in Japan, boosting sales locally and inspiring creative menu changes in other target markets.
Increased revenue streams: International markets unlock new opportunities to generate income. With a wider audience, businesses can rely on multiple sources of revenue to achieve steady financial growth, further propelling their growth.
Decreased market dependency: Business expansion allows your organization to reduce reliance on a single target market, protecting it against regional economic fluctuations. Your company can remain stable if something drastic happens in your domestic economy.

8 potential challenges of international expansion strategies

Here are some common hurdles for businesses expanding into international markets and how to overcome them:

Cultural differences: New markets often come with entirely different cultures. Misinterpreting local customs or values creates barriers to connection with your audience. Businesses should perform thorough market research and hire local experts to help align their products, messaging, and practices with regional expectations.
Regulatory compliance: Legal requirements differ between markets. Global businesses must understand and comply with these local regulations to avoid legal setbacks and maintain ethical practices. Partnering with local legal advisors can simplify this process. For international hiring, an Employer of Record (EOR) can handle administrative tasks like payroll, taxes, and benefits compliance.
Language barriers: Poor translation will hamper relationships with customers and partners. Global businesses should invest in professional translation services to localize their company materials and documents to avoid miscommunication.
Logistical complexities: Supply chains and distribution across borders pose unique challenges that can create delays and increase costs. You can mitigate risk by partnering with local logistics providers that offer tech solutions to track shipments and optimize operations.
Market saturation: A newly expanding business may struggle to stand out in a target market with strong competitors. Market research can identify gaps or underserved customer needs your business can fulfill.
Currency fluctuations: Changing exchange rates can affect your bottom line. Protect your profits by adopting financial hedging strategies or working with international banking services to stabilize transactions.
Cultural resistance to foreign brands: Some regions may prefer local companies over foreign entrants. Build trust by adapting your branding, products, and customer service to connect with local values and preferences.
High operational costs: Expanding into new countries can strain budgets, especially during the initial setup phase. Start with scalable solutions like partnerships or remote teams to minimize costs while you test the market.

11 steps to build a strategy for international expansion

Here’s a simple step-by-step guide to create your own international strategy:

Define your goals: Be clear about what you want to achieve when expanding internationally. Whether you’re increasing revenue, growing your customer base, or diversifying your operations by hiring new talent, your goals will guide the entire process.
Conduct market research: Learn everything you can about the markets you’re considering entering, including customer needs, cultural expectations, and local competitors. Thorough research informs a strong market entry strategy that suits the region. Without it, you may misinterpret local customs or values, potentially damaging your reputation.
Choose your target market: Not every market is right for your business. Focus on regions with built-in demand for your product or service where you can offer something unique.
Develop a localization plan: Adapt your products, marketing, and website to match the local culture so your brand feels more authentic. Translation and localization are significant undertakings, but they’re necessary to connect with new audiences. Translation technology, such as Smartling’s AI Translation solution, can help you translate text in minutes instead of waiting days or weeks for translations with traditional methods. By blending the powers of large language models and neural machine translation, Smartling provides fast, affordable, and high-quality translations.
Evaluate regulatory requirements: Research laws and regulations in the new market. Partnerships with local legal experts save time and prevent costly mistakes.
Plan your market entry: Decide how you’ll enter the market—whether through direct sales, partnerships, or setting up local offices. Each approach has pros and cons, so choose one that fits your goals and resources.
Build a local team: Hiring local talent helps you understand the market better and connect with customers. A local team also builds credibility and trust in the region.
Set pricing: Research local pricing norms and adjust your rates to stay competitive while maintaining profitability.
Establish strong partnerships: Partner with local distributors or service providers to expand your network and strengthen your presence in the new market. New partnerships help you deliver solutions while gaining practical insights from companies that have succeeded in the region.
Test your strategy: A strategy that works domestically won’t necessarily work in a new market. Start with a small-scale launch to gather feedback and adjust your plan before fully committing.
Monitor and adapt: Global expansion isn’t a one-and-done effort. Track progress, listen to feedback, and be ready to adjust your strategy as the market evolves.

Smartling helps you expand globally

Tags: 博客 eCommerce Optimize

Global expansion: A step-by-step guide to growth

What is global expansion?

Key benefits of implementing global expansion strategies

8 potential challenges of international expansion strategies

11 steps to build a strategy for international expansion

Smartling helps you expand globally

What is global expansion?

Key benefits of implementing global expansion strategies

8 potential challenges of international expansion strategies

11 steps to build a strategy for international expansion

Smartling helps you expand globally

What is global expansion?

Key benefits of implementing global expansion strategies

8 potential challenges of international expansion strategies

11 steps to build a strategy for international expansion

Smartling helps you expand globally

What is global expansion?

Key benefits of implementing global expansion strategies

8 potential challenges of international expansion strategies

11 steps to build a strategy for international expansion

Smartling helps you expand globally

What is global expansion?

Key benefits of implementing global expansion strategies

8 potential challenges of international expansion strategies

11 steps to build a strategy for international expansion

Smartling helps you expand globally

What is global expansion?

Key benefits of implementing global expansion strategies

8 potential challenges of international expansion strategies

11 steps to build a strategy for international expansion

Smartling helps you expand globally

What is global expansion?

Key benefits of implementing global expansion strategies

8 potential challenges of international expansion strategies

11 steps to build a strategy for international expansion

Smartling helps you expand globally

What is global expansion?

Key benefits of implementing global expansion strategies

8 potential challenges of international expansion strategies

11 steps to build a strategy for international expansion

Smartling helps you expand globally

What is global expansion?

Key benefits of implementing global expansion strategies

8 potential challenges of international expansion strategies

11 steps to build a strategy for international expansion

Smartling helps you expand globally

What is global expansion?

Key benefits of implementing global expansion strategies

8 potential challenges of international expansion strategies

11 steps to build a strategy for international expansion

Smartling helps you expand globally

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