The 5 essential criteria for assessing your company’s ability to set up in a new country
Analysis / Strategy of success
Expanding internationally sounds good, doesn’t it? It conjures exotic horizons, growth opportunities… and sometimes a few headaches.
Before jumping on the plane to conquer a new market, it’s time to take stock. Because, just like a first date, it’s best to know if you’re really ready before you commit! I’d like to take a closer look at this subject and share my point of view with you.
Here are the 5 key criteria for assessing whether your company is ready to tackle new territories:
1. Is your product or service adaptable?
In other words: can your product be attractive elsewhere, or is it too ‘’localized‘’?
Imagine selling luxury radiators. An excellent idea in Scandinavia, much less so in Brazil. Adapting your product or service is often the key to appealing to an international clientele.
Before you do anything, ask yourself these questions:
- Can it be adapted to local tastes, culture or standards?
- Does the product meet a specific need in that country?
What works in Germany (efficiency, durability) might not appeal to an Italian customer who is looking for an emotional or personalised experience above all else.
One example that springs to mind is the famous failure of UPS, the now world-famous logistics service.
The famous American delivery brand didn’t have the best of days when it set up shop in Europe. Two things in particular went wrong, not the service itself, but the way it was presented.
To put it in context, when we talk about UPS, we think of the little men in their brown overalls in their big brown vans (photo).
So why was it frowned upon?
- Firstly in Germany, where the brown uniforms of the delivery drivers were frowned upon because they reminded people of the ‘Brown Shirts’, an organization linked to the Nazi regime.
- But also in Spain, where the delivery vehicles (also brown) looked a lot like Spanish hearses.
Moral of the story: Find out about local history and trends.
2. Do you have the necessary financial resources?
Is your budget ready for this expansion?
International expansion is a bit like planning a wedding or a big birthday party. It’s not just about the dress or the suit, it’s also about the venue, the caterer, and sometimes the unexpected (lots of unexpected). In a nutshell:
- Do you have the funds to adapt your products, recruit locally and manage logistics?
- Can you finance market research?
I’m not going to tell you, but I’d rather say it again (who knows): If your current budget looks like an empty piggy bank, it’s best to wait before packing your bags!
International expansion certainly requires resources and not just financial ones. It takes time, skills and flexibility:
- Human: Do you have a team ready to take on intercultural challenges? A communications expert will be useful to translate (in every sense of the word) your message.
- Financial: Marketing, logistics and legal compliance budgets can explode if you underestimate local differences.
The lesson here is to be prepared to adjust your budgets to comply with local regulations.
3. Is your team ready for the challenge?
Do you have the right skills internally?
A team that understands intercultural challenges is a bit like a good compass: essential to avoid getting lost along the way. Make sure your company has:
- Operational flexibility to manage customers or partners in other time zones (yes, even at 3am sometimes).
- Knowledge of local business practices.
- Language skills: sending emails in broken English can quickly turn off a partner…
Example: When Starbucks set up in China, they trained their team to understand local habits, such as the importance of socialising in groups.
Do you need help with this?
Learn the codes of your target country, update your team on local communication, perfect your marketing strategy so that it becomes a success strategy… The International Path is here to support you in your intercultural marketing 
4. Is your communication ready to speak the local language… and culture?
Do you have a real strategy or just a wanderlust?
Translating your message is not enough. You have to adapt it to the culture. The tone, visuals and even communication channels differ from one market to another.
A cosmetics brand cannot approach France and South Korea in the same way. Where the French are looking for natural products, the Koreans prefer high-tech innovations.
Carrying out in-depth market research is essential. You need to know:
- Local competition: Who are your future rivals? How are they established?
- The profile of your target customers and therefore new consumers (age, income, tastes).
- The characteristics of the market: is it already saturated? Growing fast?
Tip: Work with local marketing professionals who understand the cultural nuances of your target market.
Also worth reading
4 common mistakes in international marketing to avoid.
5. Are you ready to face up to the administrative and legal constraints?
Have you understood the local regulations (or hired someone who does)?
Bureaucracy is almost an Olympic discipline in Europe. Each country has its own rules of the game: taxation, standards, labour rights… In short, you need to be prepared if you don’t want to find yourself trapped by an obscure clause.
Italy and its tax subtleties, Spain and its rules on subcontracting… It’s best to know them before you land!
- Find out about local legal requirements.
- Check import/export taxes.
- Adapt your contracts and general terms and conditions.
One example that applies to France is that the highly standardized French administration often gives foreign companies that want to set up or sell in France a hard time:
Uber has experienced setbacks on the continent because of the strict regulations on non-professional drivers. In France, if you don’t have a license, you can’t operate! Something that the American company had not anticipated.
Another quite explicit example: a Swedish cosmetics brand had to rethink its packaging to comply with French ecological standards. These adjustments delayed its launch but ultimately strengthened its local image.
Moral: Consult a local expert or work with a chamber of commerce to anticipate legal obstacles.
Conclusion: Preparation, flexibility and curiosity are your best allies
Successful expansion in Europe requires more than a good idea and a train ticket to the next target market.
Each country has its own particularities and challenges. Take the time to prepare.
With the right offer, a well-thought-out strategy, and a bit of humor to overcome the unexpected, your company can succeed in establishing a lasting presence.
So, are you ready to add a new destination to your itinerary?
Hey pssst… Don’t rush off! See if another article might interest you, or sign up for our super newsletter to receive even more international tips