Various economies of the world are facing protectionism and fragmentation due to growing overseas expansion. These days, more and more global firms are eyeing to set up their business overseas.
Even after that, the Singapore companies have a great opportunity in their hands to expand in international markets seeing the increase in consumer spending globally. By doing the right homework, many local Singapore firms can enter into global markets and be a success story.
Entering Global Markets
Singapore companies first need to identify the target markets for their products. Depending on the business’s long term goals, they can go global. The business must understand the new market and know the pricing pattern for the goods to export. The companies must know the consumer tastes and accordingly try to capture the market. By creating a good relationship with global customers, the business can capture the good market share in the long run.
Enter Into Partnership with Local Businesses
Another key to success for Singapore companies while expanding the business in the global markets is entering into a partnership with the local businesses. The local businesses know the customers very well and help in developing a cost-efficient distribution channel. One of the popular ways of entering into the international market along with local partners is through the franchise. The franchise model has been a success in most cases and Singapore’s small and medium enterprises can very well adopt this approach successfully. Singapore companies must know that partnership with local players or taking a franchise will lead to commission cost.
Before entering or partnering with players globally, it is important for the Singapore companies to conduct due diligence. In this segment of the article, we will understand the importance of due diligence.
Importance of Due Diligence
Before the expansion of the Singapore companies, they must conduct due diligence. Due diligence must involve the status of their current financial position, level of competence on going global, ability to survive and future growth prospectus. By familiarising with the target markets, the local Singapore SMEs will know which method of expansion and international market will suit them the best. Also, while entering into a partnership with local business, the Singapore companies must conduct due diligence of the local partners. By doing so they would know their capabilities and ability to survive in the long run. Therefore, by doing all the due diligence rightly, the chances of survival of the Singapore businesses in the international markets would be much higher.
Singapore businesses have the potential to establish themselves as major players in the global market. To help them achieve their objective, IMC Group provides various services to the local businesses. So, if you have a business plan in mind and are wondering how to start a business in Singapore or any other country, we can assist you with our wide range of services including outsourcing of accounting services in Singapore, outsourcing of company secretarial services in Singapore and so on. To avail our services and know our quotation, you just need to drop us an email specifying your requirements.