No matter how big a brand's home market is, there will come a point in time where growth opportunities in that market are exhausted. When that happens, there are two roads that a company can take. One, stay put and diversify into other products and services. Two, expand into new international markets.
Both have its pros and cons. This blog post will look at some of the things that you need to look out for should you intend to expand your brand into new international markets which will help your brand from being torn apart by the different local market forces acting on it.
Offensive Versus Defensive Position
When you enter a new market, there will be local competitors to deal with. Although these local competitors may not be as big in absolute terms, you should not dismiss them because they got into that market first and their brands are more established in the local market. There are two basic strategies that you can adopt – offense or defense. In your home market, you may be the market leader. If you are the market leader, you play a defensive game. You block your competitors' moves.