To be able to expand internationally, a company must understand the ins and outs of complex transnational markets, which can be achieved by using either in-house specialists or experts recruited from outside the company.
Soliciting the help of in-house specialists requires time and considerable investment, sometimes even additional training, which brings us to the second option, namely the idea of leveraging expert networks (ENs).
Expert networks can connect businesses with industry specialists who can then provide valuable insights that companies can use to their advantage.
Challenges and opportunities
Global expansion requires a growth strategy that will offer the potential for profit for companies of all sizes, but this requires careful planning; otherwise, it could run into serious problems.
For example, did you know that any business that carries out production in Germany is obliged to accept accountability for reducing packaging waste? They must register with the Central Packaging Register or otherwise face penalties of up to €200,000.
However, if handled effectively, the expansion of domestic operations to new markets overseas can create a wealth of opportunities, ranging from diversifying sources of income to gaining access to a larger talent pool.
Let’s dive deeper into how ENs can help companies to expand globally, stay up to date in terms of global trends, and reduce the risks of entering new markets by offering in-depth market research.
Leveraging expert networks for global market analysis
Obviously, any activities linked with business development and expansion require a deep understanding of the relevant market and all its complexities.
By getting in touch with expert networks, businesses can gain access to subject-matter experts who can serve as a valuable source of in-depth analyses of new market conditions, competitive landscapes, and consumer behavior.
Being equipped with specialized knowledge, companies can then increase their chances of:
Making more informed decisions
Tailoring their strategies to local nuances
Identifying opportunities that might otherwise be overlooked
RightAngle case study 1: Active Pharmaceutical Ingredient market
Our client was interested in gaining insights into the global Active Pharmaceutical Ingredient (API) market to support its strategic decisions regarding global expansion. Specifically, the company sought an expert with in-depth knowledge of medicine production and consumption patterns.
The goal
Our client sought several key insights from the expert:
Key trends in the global API market
Main drivers of production and consumption
Regional supply-demand dynamics
The process
At RightAngle, we leveraged our robust network of industry experts and conducted a targeted search to identify a professional with comprehensive expertise in API production and advanced knowledge of market trends.
The outcome
We successfully connected our client with an expert who provided actionable insights into the industry’s current and future structure, including important regional and global dynamics.
Gaining insights into global business trends
Why are ENs such a valuable source of data for companies? Because the seasoned professionals they identify and connect with possess first-hand experience in global business practices such as offshoring, outsourcing, and shared services.
Offshoring and outsourcing
When it comes to offshoring (when a company transfers its activities or the ownership of an entire business process to a different country) and outsourcing (when a company hires a third party to perform a job/service/process), experts can offer guidance on:
Spotting cost-effective destinations
Navigating regulatory landscapes
Handling cross-cultural communication challenges if these exist
Experts can provide information on market dynamics, labor quality, and any possible risks a business could encounter, thus assisting with risk minimization.
Shared services
In terms of shared services, experts can share their practices and insights to help organizations to improve their operations and provide information about:
Centralizing operations, i.e., how to devise strategies to combine tasks and functions to improve coordination and reduce duplication.
Improving process efficiency, i.e., how to spot inefficiencies and act accordingly to improve productivity.
Leveraging technology, i.e., which tools and technologies could help to streamline workflows
Structuring shared service centers, i.e., how to develop and organize these to achieve a better result.
Scaling operations across several locations, i.e., which strategies can help to expand shared services effectively throughout various regions.
In addition: Via communication with subject-matter experts, companies can gain updates on emerging trends, including the impact of geopolitical changes, progress in digital transformation, and sustainability concerns.
RightAngle case study 2: Outsourcing
The goal
A RightAngle client was seeking insights into the outsourcing landscape in several countries in South America, specifically in relation to procurement services and the associated regulations.
The company required expertise from senior leaders in finance, legal, vendor management, and procurement teams operating in global capability centers (GCCs) or shared service centers in the region.
The process
At RightAngle, we conducted a focused search across our extensive network of industry experts, identifying senior leaders with first-hand experience in GCC operations and regulatory compliance in the target countries.
The outcome
We managed to connect our client with professionals who shared crucial information on regulatory frameworks and industry trends and provided specific case studies of outsourcing success.
Using expert networks to reduce market entry risks
When a business is considering entering a new market, identifying and mitigating any possible risks is a vital step to take. Some of the risks include regulatory challenges, cultural differences, and unfamiliar competitive environments, all of which could impact a company’s activities.
As ENs connect businesses with industry experts, who could include CEOs, managers, academics, etc., they act as a bridge to enable companies to gather crucial knowledge, which then helps them to make well-considered decisions and avoid any pitfalls.
By leveraging the information collected, companies can gain a better understanding of how to effectively dodge certain obstacles and increase their chances of successful market entry.
Final thoughts
Whenever a business plans to pursue expansion into a new market outside its existing geographical area, contacting an expert network represents a huge step forward.
By accessing specialized knowledge, a company can enrich its corporate understanding of global business trends, improve market analysis, and learn about legislative hurdles within the new markets, among many other benefits.
By integrating ENs into their global operations strategies, businesses can reduce the potential risks associated with entering a new market, as well as achieve sustainable growth in the international business landscape.