Beware of an opportunistic approach to international development
If you’re looking to expand your brand overseas right now, consider these key factors when developing your strategic road map.
International expansion offers an attractive growth vehicle for many franchised concepts. Even if your home market is a sizeable one, like the U.S.A., it still represents only a fraction of the global economy. As they say, it’s a big world out there. Furthermore, advances in communications and technology have made it easier than ever to expand internationally.
Nevertheless, it is critical that companies be cautious not to expand internationally with an opportunistic approach, even though, it can be tempting and enticing. We’ve seen it happen over and again, typically when a successful and up-and-coming concept gets approached by potential partners from a different country. They come knocking on your door, paint a rosy picture of the potential for the brand, and offer tempting commercial terms. Although this approach can work, chances are that it won’t, and the costs might outweigh the benefits.
To further understand how this can happen, let’s look at successful international development for a moment......
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