You already have a highly successful business and are now looking East to Asia. It makes a lot of sense, with 60% of the world’s population and a consumer market of some four billion people.
While vast, the Asian market is not homogenous, so you may want to target your market entry carefully. The obvious choices are China or Southeast Asia / ASEAN.
With offices in Greater China: Shanghai and in Hong Kong, offering an alternate entry point with a strong regulatory regime; and Singapore, the central hub for Southeast Asia, YourBoard exists to help you successfully expand into the region.
While each expansion strategy carries its own risks, there are three success strategies that should help guide your thinking.
Understand the Potential Opportunity
Asia is different, with different rules and different market characteristics. Differences exist not just between countries, but also within countries, particularly in China and Indonesia. The importance of defining business strategies by using market reports; analyses on demographics and product sell strategies; the ability to deploy the right level of organisational capability, through a talented local workforce; and working with people with local knowledge are all critical for successful Asian expansion.
Bridge the Cultural Divide
If your business expansion involves a merger or acquisition, instead of partnering, then beware! M&A deals have a notorious rate of failure, close to 90%. This is not the risk of striking the right deal, but the risk of being able to capture the synergies through the expansion strategy. People are the largest variable in the success of any expansion strategy and in Asia cultural issues can play a large, if not dominating role. Local cultures in some of the Asian markets may not exhibit the same receptiveness to what you have done elsewhere, and this again requires planning upfront to avoid the pitfalls later.
Don’t Go it Alone
The key to any successful expansion, is having a team of local experts in-country who understand the market and can facilitate the forging of local partnerships. Having the right team of experts to help you navigate your expansion journey will be the key to its success. Having a team of experts and partners to provide your business with hands-on personal support and expert advice is invaluable for a small or medium-sized business that has taken the risky step of expansion.
Once the expansion strategy has proved successful, your business model will need the inevitable flexibility and adaptability to change. Once again, having access to expert advice across a multi-disciplined team is equally critical to ensuring the business strategy for expansion continues to evolve in the way envisaged.
For M&A and expansion strategies, YourBoard recommends a subscription service, as managing initial expansion strategy risks is only the beginning of a successful business expansion strategy. Having access to a team of multi-disciplined experts as you look to create shareholder value from an expansion, is important.
At YourBoard we take immense pride in building strong relationships with our clients; and by offering this disruptive subscription service, very different to management consulting firms who charge daily rates for projects, means that we can offer business solutions that would not normally be available to smaller and medium-sized businesses.
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