Introduction
In any successful business, there comes a time when it is necessary to expand it to increase profits and capture a new customer base. Entrepreneurs from different countries may well launch their projects on the territory of other states (Liñán & Jaén, 2020). In an era of globalization and high competition in most of the world’s markets, expanding business is an obvious option that many companies prioritize. Today there are many ways a fashion/clothing store based in Osnabrück (Germany) can expand its operations in the Netherlands.
Professional Hiring
International expansion is valuable because it allows one to join the external market, explore it and get various customers abroad. Entering a foreign market is an important step that requires a well-thought-out development strategy to increase sales effectively. Local professionals are the lead behind exponential growth, and having the right local workers can increase this effect (Sheth & Parvatiyar, 2020). Having the right employees is one of the essential things a fashion/clothing store should spend money on, as it directly impacts productivity and, ultimately, company revenue (Ahmed et al., 2020). While hiring the best professionals can cost a business more, it is an investment that will pay off in the long run.
Partnership
Strategic alliances with local professionals and companies already operating in a particular country are another method of international expansion. It is a way for two companies to achieve a standard or mutually beneficial set of goals (Zahra, 2021). Organizations begin by determining whether a partner will bring value to their enterprise, both financially and overall (Stallkamp & Schotter, 2019). The local firm will most likely have a good understanding and experience of the market and will already know that country’s culture. International partnerships can be beneficial in overcoming any differences between the domestic and foreign markets, such as cultural or regulatory differences (Li & Fleury, 2019). It is beneficial if the company is partnering with a domestic company with similar values.
Remodel Culturally
Although the cultures of Germany and the Netherlands are similar in comparison to others, a fashion/clothing store may encounter various cultural barriers when expanding its business. Before introducing an organization to another country’s territory, one should study its features and differences from other cultures to consider them when doing business abroad, particularly in the Netherlands (ÓhÉigeartaigh et al., 2020). For example, in the decision-making process, the Netherlands is guided by consensus, while the guidelines usually come from above in Germany. It indicates the difference in the hierarchical system between countries (Johnston et al., 2021). While in Germany, there is most often a strict hierarchical structure between management and subordinates, in the Netherlands, people are team-oriented. In this regard, management by objectives will be effective, based on the assumption that people work better if they know what is expected of them and can relate their personal goals to the company’s goals (Franco-Santos & Otley, 2018). The distribution of responsibilities and support for a more informal environment in the Netherlands can be considered a successful business strategy.
Conclusion
Despite all the benefits of expanding a company internationally, it should be remembered that there are features of this process that a business needs to consider in order to succeed in this process seriously. To enter the international market and successfully sell your product or service abroad, you should consider existing ways to expand your business. Connecting with the local culture is one of the most effective and includes cultural adaptation in general and hiring local professionals or partnering with other organizations.
References
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