How to Conquer New Markets with Old Skills

1. Companies hesitate to jumpinto international markets
They see themselves as hopelessly flawed. They don’t have cutting-edge technologies, dominant brands, novel products. Also, the think the process of building those advantages looks long and daunting
2. Spanish multinationals are thriving abroad
Spanish firms international expansion in the past 25 years. They used acquisitions to extend their reach.Meanwhile; they focused on a few industries and geographic areas
3. Capabilities of Spanish firms
Homegrown political and networking skills
Project execution knowledge
Vertical integration expertise
4. Late Bloomers Become Global Giant
Offshoots of the first globalization
Spanish companies are formidable competitor in related niche markets
Favoring alliances, joint ventures, and acquisitions
Focus foreign expansion efforts by geography
5. Parlaying Political Skills into Growth
Actively manage relationship with the local officials
Forge personal connections to gain information that allowed them to anticipate shifts
Deliberately choose to operate in countries where government officials posses broad powers to grant licenses and issue regulations
6. Adding Capabilities through Networking
a knack of piggybacking on the operations of established multinationals
Build vertical and horizontal networks to penetrate foreign markets, deepen knowledge, and gain access to competitive resources.
7. Achieving Efficiency with Vertical Integration
An uncanny ability to integrate vertically and deliver a wide variety of new products quickly to global markets: Zara, Pronovias,
Viscofan used vertical integration to operate efficiently on a global scale and become the world leader in its industry——artificial casings for meat
8.Full Speed Ahead
Entering developing countries helps a company gain size, operational experience and generate profit
Expansion in developed markets contributes primarily to its capability-upgrading process.
Companies with overseas ambitions should attain scale quickly, gaining invaluable experience and building stronger competitive capabilities.