How to Select International Markets

In a globalized scenario, competition goes beyond borders, challenging companies to stand out not only locally, but also internationally. 

Even for those that do not yet actively explore foreign markets, foreign competition is present in their market niches, influencing the need for a global vision. 

In this article, we will describe how internationalization can be a key strategy for Brazilian companies, not only as a market expansion, but also as an effective defense in the competitive domestic environment.

Advantages of internationalization for local competitiveness

Operating in international markets not only expands commercial boundaries, but also boosts a company’s competitiveness on the domestic scene. 

In turn, an internationalized company is better managed and also offers products and services with high standards of quality and technology. 

This approach not only extends geographical reach, but also raises perceived quality, contributing to a stronger position in the domestic market.

Challenges and considerations in internationalization

In the process of internationalization, the right choice of markets is fundamental. Whether through direct or indirect export, the entrepreneur needs to answer the fundamental question: in which country or countries will the company operate? 

So the first step in internationalizing companies and products is to choose the target markets. To do this, it is important to consider factors such as market potential, cultural and commercial barriers, competition, among others.

Essential aspects of choosing international markets

Paying due attention to the factors mentioned above will determine a company’s success in international markets.

The company must adapt its production capacity and strategies to the target market, understand the competition and, above all, have a thorough understanding of the culture and preferences of foreign consumers. 

Other aspects such as demographic, socio-political, economic and technological characteristics must also be carefully considered.

With this in mind, market research and product testing are valuable strategies in this process, reducing risks and increasing the chances of success.

The selection criteria

By looking at the factors mentioned above, the company can direct its choices towards the most attractive market for its products. 

Once you have an indication of which countries you want to operate in, the next step is to analyze the following information:

• Focus market profile: market size, population, per capita income, population distribution, economic growth, trade barriers, competition;

• Competitor profile: competitor companies, products and services offered, operating strategy;

• Profile of the country’s foreign trade: main exported and imported products, trade flow;

• Distribution structure: existing distribution channels, logistics;

• Tariff and non-tariff barriers: tariffs, quotas, technical requirements;

• Profile of potential clients: consumption habits, preferences.

Strategies

The next step after choosing international markets is to draw up strategies and stages to implement the actions:

• Internationalization plan: define objectives such as increasing revenue, expanding market share or diversifying the product portfolio. Strategies to achieve these goals should include how to enter new markets, develop new products or services or expand existing operations;

• Adapting products and services: changes to packaging to comply with local laws and regulations, translation of manuals and instructions into the language of the target market;

• Building international relationships: international partners have greater knowledge of the target market and can provide access to distribution channels or financial resources;

• Investment in marketing and communication: helping the company to create brand awareness, generate leads and promote sales;

• Staff training: training in languages, culture and international business.

Market selection and strategic tools

When directing the compass towards choosing the most suitable market, the company must analyze the profile of the focus market, the competition, the target country’s foreign trade, the distribution structure and tariff and non-tariff barriers. 

Access to information on markets, trade flows and statistics can be facilitated by tools such as the Comex Stat Portal, ITC – TradeMap and Market Access Map. These offer valuable insights, providing statistics and information on export markets, importers, growth and trade barriers.

Final considerations

This text highlights the importance of market assessment before heading out on an international journey. 

With a variety of data available, companies, even smaller ones, can avoid surprises, disappointments and unnecessary costs. 

Knowledge of the target market is crucial, and export decisions made based on accurate and detailed information result in more effective strategies. 

In an increasingly connected world, internationalization is not just a bold choice, but a necessity for companies seeking to prosper globally and, consequently, strengthen their position in the domestic market. 

To find out more about the stages of internationalization, visit our website and schedule a call with our team.