Look to Foreign Markets to Keep Business Growing

In turbulent times companies should always look to foreign countries as potential new markets for their goods and services.  New foreign markets can increase sales, diversify the company’s customer base, amortize new product development costs and provide protection against variations in the domestic business cycle.  Foreign markets also provide good opportunities for selling older, more mature, products that have become obsolete in more advanced markets.  In addition, a network of global facilities allows a company to quickly divert products and supplies into regions where demand is booming.  While a global sales strategy is more risky when economic conditions are weak in many parts of the world it is still important for managers to consider from the very moment that new product development activities begin.  My report this week focuses on some of the reasons that emerging companies should be thinking about selling their products and services outside of the U.S.