How Small Companies Can Participate in Globalization

Some small companies never thought about going global, or in other words, becoming international retailers. They think of selling their products in foreign countries and think of ways to do so. Before you know it, they have become global marketers. Many companies know that by doing business in other countries, they can broaden their potential buyers. By selling to foreign customers, though, retailers are stumbling upon roadblocks. Selling their product in international markets is not the same as selling in the United States. Retailers, especially small businesses with limited resources, are realizing large capital expenditures in order to accommodate sales in foreign markets. However, many companies are doing quite well in the international markets depending on their strategies. The resources, I based this paper on, talk about four different ways that small companies can use to sell their product in global markets successfully.

The first method is to find a foreign distributor. By using a foreign distributor, the small company owner can get a hold on a market that is familiar to the distributor. Otherwise, it would take an unfamiliar American a long time to do. The foreign distributor already knows the market so it easier for him/her to find buyers for the product. This is a low-cost and low-risk way to get your products sold in foreign countries. The distributor already has a relationship with the market in his/her country. They buy the products from the American owned company, provide the sales support and then sell it to the consumers. Companies need to be careful of which distributor they use; otherwise they may not make as many sales as they have the potential to do. Foreign distributors need to ...

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... Design Inc. of Soquel, California, did extensive research on marketing their product in Europe before attempting to sell it there. They found out that France had more licensed competitive cyclists than the United States. They visited parks in France and actually stopped cyclists to get their opinion on what they liked or disliked about bicycle helmets. This company finally decided to expand their business in Ireland.

Every method of going global involves some risks. And like many entrepreneurs in the article state, “it is a learning process.” You can’t guess at what kind of stumbling blocks you might run into. Every culture is different and what means one thing to an American may mean something totally different to a person in another country. Extensive research and development is the best way to go before jumping into the foreign market.