Growing Your Business to Other Economies

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Historically investing in new economies has proved to be beneficial for small to medium business enterprises. A case study carried out in 2001 in America revealed that SMEs (with less than 500 employees) that invested in the Central and Southern American economies experience 20-25% growth within five years. According to Maddock Douglas “the condition of the economy doesn’t determine how your business grows”. Investment in new markets is beneficial because economies thrive at different times, hence growing your business to regional or international markets increases revenue and grows your brand. 

Growing your business, however, requires a generic and rigorous PESTLE analysis that would inform the scalability and marketing plan. James King, author of Scaling Up attests that scaling your business into new markets or economies relies on your capacity to establish “transplantable infrastructures” that can be placed in different environments to increase revenue, whilst minimally increasing operational costs.

PESTLE Analysis

Political – It is vital to consider the political environment of your new market, as political systems affect business. It is important to select products or services that are politically neutral and do not overstep any political boundaries. 

Social – Social considerations are centered around, culture and language. It is important to become familiar with the local culture. A sociological analysis largely impacts the marketing plan and penetration strategies by informing ‘customer markets based on age, gender location, and psychographics such as interest, activities, and values’. Cultural aspects also have an effect on the effect of advertising methodologies and communication strategies. Hitesh Bhasin emphasizes on the need to formulate a localized approach that celebrates lifestyles, consumer habits and makes use of language to unite the brand and the people, creating lasting relationships.

Legal – The legal analysis should consider, import, export tariffs, and other compliance regulations. Some countries require foreign businesses to partner with locals. In this case, it is important to leverage on a partnership with industry leaders that will help you network and succeed, in your country of interest.

Environmental – The environmental analysis informs on ethical considerations and environmental regulations that govern your country of interest.

A PESTLE analysis forecasts how scalable your business is, products or services that would thrive in new markets, highlights pricing strategies that would work and helps navigate the economy and its legalities. It is most importantly creating a balance between your expectations and what can be achieved, considering the differences in economies and how they are run.

To benefit from the economic thrive that comes with different market environments, book an appointment with one of our partners and discover structures your business can implement that have the capacity to inhabit new markets.

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