Expanding internationally is essential for companies aiming to thrive in today's interconnected world. In an era of growing economic interdependence, breaching domestic confines presents a plethora of benefits and possibilities. With technological advancements, improved logistics, and lower trade barriers, businesses of all sizes now have unparallelled prospects to engage with global markets, reach new customer bases and maximise growth potential. Whether you are a budding entrepreneur or business owner looking to expand your horizons, this article looks at growth strategies, challenges and the transformative potential of taking your business global. In a 2023 Harvard Business Review, it was noted that cross-border trades continue to rise, and that the International Monetary Fund (IMF) forecasted a return to a regular growth pace of 3.5% in 2024 after leaving the effects of the pandemic behind.
Pros and Cons of Internationalisation
Expanding overseas presents significant opportunities but also demands careful consideration of potential obstacles.
One of the main advantages of Internationalisation is accessing untapped consumer segments with diverse needs and preferences. Additionally, internationalisation offers the benefit of market diversification, mitigating reliance on a single market, minimising vulnerability to economic downturns or shifts in local regulations. Venturing into international markets fosters innovation and competitiveness by exposing businesses to new concepts, technologies, and operational methodologies prevalent in diverse markets. Collaborating with local partners or competitors promotes knowledge exchange, cross-pollination of ideas, and the development of innovative offerings tailored to meet the distinct demands of each market. This adaptive strategy not only fortifies the company's global position but also accelerates growth by effectively addressing specific market requirements.
However, internationalisation comes with its share of challenges. Companies may lack sufficient connections in- foreign markets and may require assistance in understanding the local business landscape. One of the major obstacles is cost; expanding into new countries can be financially demanding, requiring significant investments in marketing, logistics, and infrastructure. Moreover, internationalisation may necessitate significant changes to a company’s organisational structure, which can be time-consuming and disruptive. Another significant challenge is navigating complex regulatory frameworks and cultural differences.
Optimal Destinations for Singaporean Companies Expanding Overseas
Despite Singapore's reputation as an excellent business environment, companies should not confine themselves within its borders. According to Tan Soon Kim, Deputy Chief Executive of Enterprise Singapore, “it’s time to move out of comfort zones to seek new sources of growth”.
Increasingly, smaller companies and serial entrepreneurs are venturing into international markets. Linus Goh, OCBC Head of Global Commercial Banking, notes that internationalisation in 2023 and 2024 is no longer exclusive to large firms. He observes, "we see more smaller companies, more serial entrepreneurs going out into the region earlier." Based on an interview with Peter Ong, former chairman of Enterprise Singapore shared that small and medium-sized enterprises (SMEs) from Singapore have been progressively embracing global expansion, with a 66 per cent rise in local companies venturing to new markets for the first time in 2023, compared to 2019. “Despite deglobalisation and geopolitical uncertainty, Singapore companies should double down on going abroad for growth”, he said. Take ShopBack, for instance; within six months of its launch in Singapore in 2014, it expanded to neighbouring Malaysia and the Philippines to capitalise on growing opportunities across the Asia Pacific region. Presently, it operates in 10 markets, serving 34 million users.
The suite of internationalisation programmes at SMU Academy aims not only to provide a comprehensive outlook and elucidation of internationalisation strategies, but also to apply the insights and guidance gathered internationally to business owners and entrepreneurs aspiring to broaden their presence worldwide. From market research to cultural competence, each programme presents actionable steps to navigate the intricacies of international expansion. The essence of internationalisation lies in constructing bridges and attuning to the pulse of local markets and experienced operators. Therefore, a significant aspect of this series involves segments where participants will directly engage with local experts and partake in networking sessions.
Southeast Asia stands out as the prime destination for global expansion, thanks to its robust trade infrastructure, bilateral agreements, and geographical proximity. Take this immersive programme: New Ventures in Jakarta for example, where you will develop market insights regarding Indonesia’s economic potential, a nation rich in natural resources and cultural diversity. You will also gain valuable knowledge on establishing business operations in this dynamic environment.
Learn from one of the world's fastest evolving digital ecosystems, Shenzhen, China on its rich history and culture, spanning from traditional to contemporary. Gain insights into its unique business culture and China's social etiquette in business. The programme brings in business leaders and top experts from renowned companies such as China’s largest Integrated Internet Service Provider, Tencent; one of the world’s most innovative companies, Huawei; the largest unicorn in the world, ByteDance, among others.
South Korea for instance, renowned for its rapid technological advancements and trend-setting beauty and creative industries, offers a wealth of knowledge for businesses aspiring to gain a competitive edge. SMU Academy’s programme in Artificial Intelligence (Big Data and Digital), Beauty, and Creative Industries presents a unique learning opportunity to grasp the strategic business decisions fuelling South Korea's success across these diverse sectors. Alternatively, immerse yourself in a five-day experience in Jeju to explore Green Technology and Sustainable Innovations in Korea, featuring eco-friendly tourism, clean infrastructure, renewable energy solutions, and more on the island.
Being a super-aged society, Japan holds many useful lessons for Singapore, particularly as Singapore aims to transition into a healthier Blue Zone 3.0 state. Explore Japan's pioneering role in healthcare innovation with the newly launched 6-day "Internationalisation Series: Smart Business and Healthcare - Japan" programme. Gain a deeper understanding of Japan’s healthcare policy, digital therapeutics, and the integration of metaverse in healthcare, including on-site visits to companies like Groove-X, the creators of Lovot, the world's first emotional-intelligence enabled care robot.
Entrepreneurs can also look across the borders for opportunities. Experience first-hand interactions with leading technology experts in San Francisco/ Silicon Valley from the likes of multinational technology giants to startups advancing Web 3.0 development such as blockchain and decentralisation.
Embark on a transformative business immersion journey and acquire invaluable insights into the dynamic sports synthesis in innovation, education and business in Spain. Venture to Barcelona and Madrid to engage with the forefront of the sports tech ecosystem, in collaboration with the Global Sports Innovation Center (GSIC) powered by Microsoft.
The UAE presents an opportunity to tap into a diverse and expanding market, making it a prime destination for businesses seeking to broaden their horizons. The Future of Retail, Education and Enterprise in United Arab Emirates (UAE) programme equips participants with an understanding of its business landscape, key sectors of focus, and prevailing market trends.
The prospect of expanding internationally is both thrilling and challenging. However, with the right strategies and assistance, it can also yield significant rewards. Whether you are eager to delve deeper into a specific country, forge partnerships worldwide, or simply adopt best practices from diverse business landscapes, SMU Academy's Internationalisation series offers insights from experienced local experts and networking opportunities to facilitate your entry into new markets.
Discover the keys to unlocking unparalleled business growth as you navigate through the intricacies of international markets. Join SMU Academy’s Internationalisation Series and transform your business aspirations into reality as you venture into new horizons and conquer the global stage.
