In the strategic plans of Italian SMEs, internationalization projects are back.
The growth that is lacking in our country is sought in foreign markets, from this consideration, rather than from the research to transfer production to low-cost countries, the new request for internationalization of our SMEs is born.
But internationalization is not in itself a source of competitive advantage. On the other hand, the company must reconsider its strategic plan in light of the need or opportunity for international growth. The successful business model in our country is not a guarantee of success all over the world if we can not adapt it or export it.
The ability to quickly transfer our business model abroad or to adapt our model to the characteristics of the destination country influences the choice of the target country for our internationalization.
Opening up the company to internationalization exposes it to a series of challenges:
– manage their activities in different currencies;
– dealing with different cultures that inevitably influence the way of doing business;
– different policies and commercial rules of the destination countries
– different tax systems and non-duplication agreements between states
– manage group relationships with different time zones
– manage language differences
– last but not least introduces the company’s exposure to geopolitics and relative uncertainty
However, these challenges should not slow down the international but now unavoidable development of our companies, but companies must equip themselves to reduce uncertainty.i