Going global is not an easy task. It takes a lot of resource, time and investment. Meanwhile, 95% of consumers are living outside of United States along with an 80% of consumer purchasing power. Additionally, globalization fueled by technology makes it easier to connect, to trade, and to deliver.
Richard Ettenson, Professor at Thunderbird School of Global Management, shared with attendees at the recent Amex Going Global summit about understanding when you should go big.
Methodology: Seven ‘tudes of International Expansion
The methodology* accesses seven factors to determine whether a company is ready to go global:
- Attitude – how important is global expansion to your company?
- Aptitude – do you think you have the knowledge of the foreign markets to which you want to expand? Do you know the culture, and understand how business is done over there?
- Magnitude – do you have the ability to align opportunities with capabilities? In other words, if an opportunity came up, could you align all stakeholders internally to move at full force?
- Latitude – do you have the ability to adapt to changing policy, unexpected incidents? How good is your inventory turnaround time? What about your cash flow?
- Rectitude – do you have the legal and ethical practices clearly defined?
- Exactitude – in your previous experience, do you think you have tolerance for uncertainty?
- Fortitude – are you committed to global initiatives?
You can take the test based on these 7 principles using the tool here: https://www.seventudes.com/
Going Global Good Practice: One Country at A Time, and Pilot First
If you think you are ready, a good practice is to not spread yourself too thin, and mitigate the risk of going global through launching pilot projects first in the country.