Expanding overseas

A great number of organizations have failed in their overseas expansion. Key reasons include the following:

• Regulatory
• High and unsustainable cost of expansion
• Over reliance on channels with the false expectation that they will produce results and ease receivables issues which results in poor partner relationships
• Disconcerted efforts
• Inability to find, retain and develop the local management talent
• Over optimistic expectations and forecasts
• High selling and marketing costs
• Competition including from previously unknown parties
• High turnover of key staff after costly and lengthy hiring and training phase

An important factor in successful overseas expansion is to get the right help from a local firm with seasoned managers who understand the challenges faced by foreign corporates and who provide honest and accurate feedback required to take the appropriate executive decisions.