How to Prepare for Internationalization

Is internationalization one of your goals?

In recent years, Portugal has been breaking export records. However, success in this process is not guaranteed for all companies, as few manage to achieve sustainable and effective internationalization. This is partly due to a superficial understanding of what the process involves, and partly due to a lack of adequate preparation.

Here are the main challenges companies face when internationalizing and how to strategically prepare to ensure success across borders.

1. Internationalization: More Than Just Finding New Clients

Internationalization is not just about identifying new markets and attracting customers. It requires a well-defined and robust strategy that begins with a thorough analysis of the company’s internal and external factors, as well as the target market. A common mistake is believing that entering trendy or popular markets will automatically result in high returns. However, a presence in new markets will only be effective if there is a solid foundation of preparation and a clear understanding of the characteristics and demands of the target market.

Key Factors to Consider:

• Political, Economic, Social, Technological, Environmental, and Legal (PESTEL) Analysis: For each country or region you plan to enter, it’s essential to conduct a detailed analysis of factors such as political stability, regulatory environment, local economy, available technological innovations, environmental concerns, and legal requirements. This analysis provides a clear vision of the opportunities and challenges the market might offer.
• Local Culture and Customs: Every market has its own cultural and social specifics that can significantly influence how products and services are received. Understanding these nuances is critical to adjusting your value proposition and adapting your communication and offerings accordingly.

2. Sustainable Strategic Planning

Expanding into international markets requires a well-structured plan that includes not only sales goals but also a careful evaluation of the company’s operational capacity, support technologies, distribution channels, and logistical processes. This ensures the expansion is sustainable in the long term.

Key Elements in Planning:

• Technology and Innovation: The use of digital platforms and electronic marketplaces can accelerate and simplify entry into new markets, reducing costs and improving efficiency. Companies can opt for e-commerce solutions, which allow them to reach customers anywhere in the world without the need for large resource deployment or physical office openings. Integrating technological solutions, such as management systems and digitized logistics, is also essential for ensuring smooth and efficient operations.
• Cost Control and Performance Evaluation: A lack of strict cost control is one reason why many companies fail in the internationalization process. Ongoing financial tracking and performance evaluations are crucial for adjusting the strategy in real-time, avoiding budgetary deviations, and maximizing return on investment.

3. Internal Preparation of the Company

Preparing a company for internationalization involves more than just external adjustments. Internally, processes must be adapted to meet the new demands and challenges that arise when entering international markets. This includes:

• Team Training: Your team needs to be prepared and trained to handle different cultures, languages, and business practices. Understanding the target markets and quickly adapting to their specificities is essential to ensuring the process is smooth and successful.
• Logistics and Distribution: Efficient logistics are vital to ensuring products are delivered on time and in good condition to international markets. Companies need to define the best logistical partners, distribution routes, and storage processes to minimize costs and avoid delays.

Ready to Expand Internationally?

If you’re looking for support in internationalizing your business, contact us:

For English, contact Gagan

For Portuguese, contact Fernanda

For Spanish, contact Marlon