Business meeting

Every business has the ultimate vision to grow and expand to optimise sales and profits. Marketing executives look for markets far and wide to achieve this dream. Thus, the search for markets across borders both within regional blocks and beyond.

Such expansion needs adequate research, planning, and strategy to be effective. During the research and planning, it is crucial to evaluate the most appropriate by evaluating the risks and opportunities of each available option.

Below are the various modes you can use to launch your business in a new frontier.

Direct Exporting

This is one of the most favourite and common modes. Businesses just need to identify sales agents and distributors in a new country. The distributors then market the products and earn a commission.

Since the distributors understand the local market better, they stand a better chance of penetrating and increasing sales and profits. It is also the least risky option as the operational costs are minimal. While appointing the distributors, it is essential to consider their logistical capabilities.

If, for instance, you are dealing with heavy construction material, consider recommending too that they buy a low load trailer. They will ease the transportation of the product and expand into unserved areas.

It is also important to consider the experience and competence of the agents. Always go for those that have been in the business for a reasonable period of time and have established sales networks.


Franchising is a business model that is fast gaining popularity around the world. In this model, a successful brand allows business owners to open own branches under its brand name. They then pay a given fee and a certain amount of their annual profits to the brand.

Franchising is a pretty simple model of penetrating into a foreign market. An established business just requires to identify interested franchisees in their target markets and begin opening the franchise.

Another advantage of the model is that the risk is shared between the established business and the franchise. This lowers the losses in the event of an unfortunate event. It is, however, important to evaluate the various factors at play in the local market to ensure that the franchise business is able to thrive.

Acquiring a Company

Business people reporting

Penetrating into some foreign markets may demand buying an established local company. This might be brought about by government regulations for foreign businesses, or the advantage of commanding a big market share. It is an easy way of gaining a new market, but it is also a risky venture.

The key advantage of buying a local company is the established market and customer base. The new entrant does no struggle to get customers as the previous brand had built a loyal base over a given period of time.

It also enables the new business to easily navigate through stringent restrictions that might have been set for new entrants. It is, however, essential to critically evaluate the business that is up for purchase.

This is because it may have a different and complicated business model. Due diligence on the market is also required to avoid failing as it would be costly.

International markets provide great opportunities for businesses. After careful consideration and planning, selecting the most suitable mode sets the business on a successful and profitable path for many years.

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