Tech companies have started to expand their businesses to different locations all over the world. Technology is changing and progressing now more than ever, and the demand for new technology is a top priority globally. As this market expands, companies should be proactive in looking into the potential growth opportunities available to them. Of course, one of the biggest reasons companies expand internationally is to increase sales and revenue, but there are many other positive outcomes that can result from going global.
Regardless of the size of a company’s home country, many businesses are most likely only targeting a small percentage of the world and, as a result, are limiting sales and revenue. Staying within one country could potentially lead to a glass ceiling effect and prevent a company from reaching its full potential. Going international allows businesses to gain access to a higher percentage of markets as well as increase its market knowledge.
Once a company has been successfully established, there is a high likelihood of its products and services working in another region if there is high demand. If the current sales of a product are decreasing in a specific region, the product could become a new popular item somewhere else in the world where it has not yet been released.
Easy with Technology
Thanks to the extreme usage of the internet in the majority of countries, it is now easier than ever to communicate with people everywhere. Skype, LinkedIn, Email etc. all offer ways to successfully forge business partnerships and run business operations when living across the globe. Internet communications make it easy to have constant contact. Before the internet, having a non-local business would be close to impossible or would require constant traveling back and forth. In contrast, now employees can email an international colleague and the message will be delivered almost instantaneously.
Access to Cheaper Labor and Materials
Idealistically, it would be superb if companies could use all of their labor and materials straight from their own home countries, but that is not always realistic. Outsourcing employees from different countries usually results in lower hourly wages as well as not having to pay for benefits such as health insurance and paid time off. This can reduce costs and increase revenue dramatically. By expanding the business to a low-cost country, companies can still acquire high-quality help and production while also saving money that can be budgeted for other costs.
Creating a Brand
As mentioned earlier, going global will increase access to information and help the public become more aware of what a company’s product is and what they are offering. When this is done, a business will be able to expand and focus on creating a worldwide brand. A strong brand has the power to really change, emphasize, or create a new look and reputation for a company. Having a company that is international also tends to give the impression that a business is more established and successful than a company who remains national.
It is extremely important for companies to feel stable and to be prepared for the unexpected. One of the great benefits of being an international company is that if something occurs in one location, there are still other operating regions that will help the business continue to keep its doors open.
As the capabilities of the Internet expand, newer and faster forms of technology are in high demand. Attached to that high demand, is an organization’s need to keep up with the public and have a large supply of products. A benefit of outsourcing labor and production is the ability to continue to make a lot of products due to time zone change. When employees from one region have all gone home for the night, employees located in another division in a different time zone are working, which provides full-time, 24-hour service and manufacturing.
The opportunities listed are only a few of the reasons that tech companies have started to expand and immigrate to countries all over the world. Expanding a business internationally can increase profit and revenue while also providing many benefits that will ensure the long-term life and success of any organization.