To compete effectively overseas, your company needs to consider its international speed to market. The speed by which you establish a presence in your new region can be game-changing for your overall success. If you’re able to get in-country quickly and efficiently with a solid team, you’re much better positioned to compete and gain new customers.
What is Speed to Market?
Speed to Market, or STM, refers to the speed by which you’re able to establish your business presence through your product or service. This can be considered an effective strategy and marker of success.
What is Time to Market?
Time to Market, or TTM, is the time it takes from a product’s inception to its readiness to launch. This term is synonymous with Speed to Market, and is often used interchangeably.
Benefits of Increasing International Speed to Market
There are a number of benefits associated with international speed to market including innovation, competitive advantage and experiential learning. Let’s explore a few of these advantages in more detail.
Promote Competitive Advantage
By entering a new market quickly and efficiently, your company is in a better position to gain a competitive advantage. Many firms choose to expand globally to test their product or service with a fresh, new consumer base. In addition, it’s common that your new customers may be experiencing your product or service for the first time, depending on the category or industry you serve and country you choose to enter.
When you enter the market at a rapid rate, you can attract a larger customer base. As a result, you can establish loyalty before your competitors. This will pay off in long-term gains as new companies enter the market.
Create a Positive Reputation
When your company quickly enters a new country, you’ll have more time to partner with local experts and build your reputation in the marketplace. Plus, if you’re late to the game, your company may start to lose credibility.
Decreased international speed to market may cause your company to develop a reputation for being a follower rather than an industry leader.
Establish Market Domination
In some international markets, obtaining complete domination in your industry can be a struggle. For example, Shanghai Jahwa in China has managed to successfully defend their home turf against such multinationals as Compaq and Unilever.
Instead of accepting defeat, multinational organizations like yours can learn from these examples of companies in emerging markets. This allows your team to gain insight into your own strategic options.
Be sure to visit your target country and assess the competitive landscape before committing to the market. Determine if there’s a need for your product or service and if you have tough competition that is already well established. After a thorough assessment, you can make a decision based on your likelihood of success with the current competitive landscape.
Method for Increasing International Speed to Market
Now that you understand the benefits and importance of increasing your international speed to market, it’s time to learn how you can establish a legal presence in your target country—fast.
We highly suggest avoiding a permanent subsidiary, which consists of high costs and lengthy lead times. Instead, use an agile global expansion solution such as International PEO. This employer or record (EOR) service allows companies to quickly and easily enter a desired market. An International PEO handles risk mitigation, compliance, payroll, benefits, and basically everything that makes going global hard.
To learn more about the benefits of working with Velocity Global experts, and see how our services can help you establish a legal presence overseas, give us a call today!