Describe the Process of Expansion of the Business into a New Region or Country

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Describe the Process of Expansion of the Business into a New Region or Country

Growth of a business that makes it to spread to new regions or countries is an ultimate vision of most business persons. Businesses are in different stages where others are already established like the Coca-Cola, Toyota, Sony, and Bidco among others, while some are in the newbie’s stage (Mognetti, 2003). Business that have already developed and are known to the public, find it easy to expand to a new region because finance is never an issue. Nonetheless, for any business in any stage to expand to a new region, their owners have to first identify a region with an opportunity then secondly solicits finances for the expansion.

In order to expand a business, it is necessary that a business owner identify the best region or country to move to. For the purpose of determining such regions or countries; it is important that market forces such as demand and supply of the products the business is to offer are considered (Luo, 1999). The only way to determine demand is by finding out how many businesses are already in the identified region that offers the same products or services the intended business is to offer. Next, is finding out loopholes that the prospected business competitors have in their products or service delivery so that the new business can take advantage of such weakness (Mognetti, 2003). After determining the demand, it is easier to estimate the quantity to supply, which is also useful in designing the size of the business store to put up in the new region and the capital to invest.

Now, after the opportunities are seen, and the estimates are done, the next most important stage is gathering expansion capitals. This can be challenging to small businesses with unstable financial bases, but there are several sources of business finances to go for. The best way to fund a new branch of a business is by ploughing back profits from the existing business’ branches. Nevertheless, there are times when it is not enough, thus, supplements from outside sources are necessary. According to Luo (1999), the best and quickest way to supplement the insufficient internal sources of business finance is by applying for a loan from financial institutions. It is worth noting that the funds sourced should also take care of all the needed levies by the authorities in the new region or country the business is to expanding to.

The preceding processes can result in going on with the expansion idea or aborting it. If all the conditions for expansion are met, that is, a promising opportunity is identified and the necessary funds are attained, the business is then expanded to the new region or country. What follows is ensuring that it performs to its best and gives the expected returns. So, the only way to facilitate the much-needed result is by marketing the new business to the prospected customers. Mostly used methods are online marketing, television and radio marketing, poster and billboard marketing, and exhibition marketing (Mognetti, 2003). Several factors determine the choice of a marketing method, and one of them is the cost. At this level, the business expansion idea has been implemented and is counted as a successful execution.

Hence, it is worth realizing that expanding a business start with having the idea to expand then putting the idea to reality in a systematic manner. Again, the best processes to follow are finding the window of opportunity, sourcing funds from any possible place, and finally doing the actual expansion. When a business achieves a successful move to a new region, the process can be replicated to other regions or countries.

References

Luo, Y. (1999). Entry and Cooperative Strategies in International Business Expansion. Westport, Conn: Quorum.

Mognetti, J. F. (2003). Organic Growth: Cost-Effective Business Expansion from Within. Chichester: John Wiley & Sons.