The entrepreneur's path to global expansion: Global economy

Résumé du document

The first step for an entrepreneur is to define what are its opportunities and resources.

Selling existing product or service in new geographic markets.Demand for a new product or service or for an existing product.Possibility of product-line extension. Better access for the company to resources such as capital, well-trained managers and engineers or specialized supplier services. Resources comprise everything that the entrepreneur might enlist to pursue an opportunity:

Financial capital. Specific talent and human capital. Specific information useful to pursuing a business opportunity.Risk-capital providers that can offer more than financial capital. The International Expansion Matrix is the juxtaposition of the opportunities and resources for a company. This matrix defines the choices that a venture has at its inception and throughout its life. This matrix is used to assess and direct a venture but also to communicate with investors and employees.

Extraits

[...] Entrepreneurs must take their time before expanding their businesses and not going too fast. Untitled-1.JPG < number > Development An example of starting in the top right being unsuccessful: Boo.com, goal of becoming first global fashion e-retailer. Set up offices in 6 different countries and offered service to 18 different countries. Also raised $135 million from investors. End: overwhelmed by global linguistics and cross-border technology and failed after 18 months. Untitled-1.JPG < number > Development Common Barriers about expanding its business: Legal requirements. [...]

[...] Promise entrepreneur, funded the company with local resources. Currently, Promise is positioned in the lower right-hand corner of the international expansion matrix and doing very well. But industry observers suggest it may eventually also pursue cross-border opportunities Untitled-1.JPG < number > Three paths to global expansion Untitled-1.JPG < number > Three paths to global expansion Case of AirbizExpress: AirbizExpress is a leading provider of air-express services in Pakistan. Initially the company pursued only a domestic business opportunity. Pursuing a regional and eventually worldwide opportunity made sense because it had buffered the entrepreneur's business and his personal risk in the uncertain home context. [...]

[...] If the strategy is local, it is better to choose local investors. If it is global, it is better to rely on global investors. Untitled-1.JPG < number > Keys to success Local investors are more likely to withdraw when a company expand globally. Global investors are more likely to withdraw when a company struggles to succeed locally. When expanding globally, Do your homework Untitled-1.JPG < number > Conclusion Entrepreneurs have to be aware of their opportunities and resources before going abroad. All companies evolve differently in the International Expansion Matrix. [...]

[...] Easier & cheaper for an entrepreneur to expand its business. Untitled-1.JPG < number > Introduction Entrepreneurs have to define precisely why do they decide to go abroad. What are their real resources and opportunities? International expansion does not make sense for all businesses. Untitled-1.JPG < number > Opportunities & Resources The first step for an entrepreneur is to define what are its opportunities and resources. Opportunities: Selling existing product or service in new geographic markets. Demand for a new product or service or for an existing product. [...]

[...] Untitled-1.JPG < number > International Expansion Matrix Untitled-1.JPG < number > International Expansion Matrix As a company grows, opportunities and resources both change. If a company reaches opportunity limits: Diversify into other products and services. Expand geographically. If a company reaches resource limits: Expand into global resource providers. Untitled-1.JPG < number > Development Walter Kuemmerle studied more than 50 entrepreneurial ventures. The majority of companies started out pursuing a local opportunity with local resources. Fewer start by pursuing a global opportunity on a global resource base. [...]