Marketing Research Paper: Global Expansion
| Marketing Research for Global Expansion | |
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Making the decision to expand a small business can be a difficult decision for any business owner. Competition amongst small businesses within the United States can prove to be debilitating for many businesses due to various factors at any given time. The United States holds less than 5% of the entire world population; therefore, 96% of consumers live outside of the United States. At a recent international trade symposium held in Washington D.C., the Small Business Administration emphasized that today 's global markets present both challenges and opportunities. "In the global economy of the 21st century, our competition is not just the firm down the road. Our competition comes from anyone in any corner of the globe with a good idea, a good education and a good internet connection," explained SBA acting administrator Sandy Baruah. To most, the thought of expanding a small business globally seems impossible, but there are many resources available to business owners that provide support, research tools, and an abundance of information to help determine if global expansion is an attainable goal. Exporting is the most commonly used global market strategy utilized by small businesses employing less than 100 employees. In fact, these small businesses make up about 60% of the firms in the United States exporting products to other countries. As with major business decision, global expansion has advantages and disadvantages. Some advantages include: increased sales and profits, gain in foreign market share, reduced dependency on existing markets, and stabilization of seasonal market fluctuations. There are also disadvantages involved which include: hiring more staff, higher administrative costs, obtaining additional financing, learning and implementing new procedures, policies, and regulations, and obtaining special licensing. The advantages and disadvantages should be assessed carefully when making
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Making the decision to expand a small business can be a difficult decision for any business owner. Competition amongst small businesses within the United States can prove to be debilitating for many businesses due to various factors at any given time. The United States holds less than 5% of the entire world population; therefore, 96% of consumers live outside of the United States. At a recent international trade symposium held in Washington D.C., the Small Business Administration emphasized that today 's global markets present both challenges and opportunities. "In the global economy of the 21st century, our competition is not just the firm down the road. Our competition comes from anyone in any corner of the globe with a good idea, a good education and a good internet connection," explained SBA acting administrator Sandy Baruah. To most, the thought of expanding a small business globally seems impossible, but there are many resources available to business owners that provide support, research tools, and an abundance of information to help determine if global expansion is an attainable goal. Exporting is the most commonly used global market strategy utilized by small businesses employing less than 100 employees. In fact, these small businesses make up about 60% of the firms in the United States exporting products to other countries. As with major business decision, global expansion has advantages and disadvantages. Some advantages include: increased sales and profits, gain in foreign market share, reduced dependency on existing markets, and stabilization of seasonal market fluctuations. There are also disadvantages involved which include: hiring more staff, higher administrative costs, obtaining additional financing, learning and implementing new procedures, policies, and regulations, and obtaining special licensing. The advantages and disadvantages should be assessed carefully when making
Cited: "Expanding a Small Business Globally." Small Business News & Resources | Intuit Small Business Blog. Intuit.com, 2011. Web. 02 Dec. 2011. <http://smallbusiness.intuit.com/news/Expansion/growth-of-business/18914708/Expanding-a-Small-Business-Globally.jsp>. Export.gov - Home. Web. 03 Dec. 2011. <http://www.export.gov>. Hartley, Steven W., and William Rudelius. "Marketing Research: From Customer Insigts to Actions." Marketing. By Roger A. Kerin. 10th ed. New York: McGraw Hill Irwin, 2011. 195-215. Print. Kelley, M. "Exporting Basics." SmallBusiness.com: The Free Small Business Wiki Resource. 6 Feb. 2010. Web. 03 Dec. 2011. <http://www.smallbusiness.com>. Strauss, Steve. "5 Steps to Taking Your Business Global." Editorial. Ed. Brent Jones. USA Today 12 Sept. 2010. USAtoday.com. Web.