Many companies, large and
small, shy away from seriously considering overseas
expansion. Compelling arguments to grow beyond your
own borders are often overshadowed by perceived risks—language
barriers, cultural differences, and governmental regulations,
to name a few.
But building your business overseas, whether you’re
expanding into the United States or out of it, isn’t
nearly as formidable as it may seem—and the benefits
are likely to make it just as worthwhile as you imagine.
Two heads are better than one
Companies that successfully achieve a global presence
rarely do it all by themselves. To expand beyond their
core offering or take their products to new markets,
they frequently join forces with others who share their
vision and complement their expertise.
This approach increases your ability to attain the
rewards of overseas expansion, which include:
• Improving your efficiency and productivity
• Broadening your customer base and accelerating
revenue growth
• Attracting new investors and increasing stability
These companies have anticipated a rapidly growing
practice of using alliances, such as joint ventures
and partnerships, as an effective path to expanding
market share. These “building blocks,” as
outlined by management guru Peter Drucker in his book,
“Managing in the Next Society,” can provide
companies with a more streamlined, less capital-intensive,
lower-risk alternative to expanding overseas than growing
either organically or via a merger or acquisition.
Faster Start
Growth takes time. You get a critical jumpstart by allying
your business with a local, established firm.
Less expensive
Cash must be preserved. Alliances allow you to trade
on your strengths and avoid excessive debt or large
outlays of cash or equity.
Lower risk
Mergers and acquisitions are seldom a sure thing. Alliances
can help you avoid their well-documented habit of failing
to increase shareholder value.
Sequent helps you grow there from here
Sequent has more than 20 years of experience in successfully
negotiating and managing effective partnerships for
companies overseas and at home. We can show you many
examples of how we’ve helped a range of companies
take the plunge and succeed.
Better yet, we can help you do it too.
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