Thinking About Expanding Internationally? Here’s How to Decide
For many businesses, international expansion is a tempting growth opportunity. But is exporting the right strategy for you?
The Ansoff Matrix, a well-known growth framework, helps businesses determine the best path for expansion. In this guide, we’ll explore where exporting fits within your market development strategy, how to assess if it’s the right move, and what steps to take for a successful global expansion.
The Ansoff Matrix outlines four key ways a business can grow:
1️⃣ Market Penetration – Selling more of your current products to existing markets (e.g., increasing marketing efforts, improving pricing strategies).2️⃣ Product Development – Creating new products for your current market (e.g., launching product variations or adding new features).3️⃣ Market Development (Exporting!) – Expanding into new markets with your existing products (e.g., international expansion).4️⃣ Diversification – Entering entirely new markets with new products (e.g., launching a new business segment).
Where Does Exporting Fit?
Exporting falls under Market Development, meaning you take your existing products or services and sell them to new customers in different geographic markets. This can be a high-reward but high-risk strategy that requires careful planning.
So, how do you know if exporting is right for you?
Is Your Business Ready to Export? 7 Key Questions to Ask
Before jumping into international markets, ask yourself:
1️⃣ Is there demand for my product in foreign markets?
Use market research tools like Trade Commissioner Service, EDC, and industry reports.
2️⃣ Can I afford the costs of exporting?
Consider logistics, marketing, regulatory compliance, and localization costs.
3️⃣ Am I eligible for government export funding (like CanExport)?
CanExport can cover up to 50% of costs for international marketing, trade shows, and more.
4️⃣ Do I understand the legal and regulatory requirements?
Each country has different tariffs, trade laws, and compliance standards.
5️⃣ What is my market entry strategy?
Will you use direct exporting, distributors, partnerships, or licensing?
6️⃣ How will I adapt my marketing and branding?
Localization is key—different markets have different buying behaviors.
7️⃣ Can my supply chain handle international demand?
Ensure your logistics partners, inventory, and operations can scale.
If you answered "yes" to most of these, exporting might be the right path!
Leverage CanExport & Other Government Grants to Reduce Risk
Expanding globally comes with costs, but government grants like CanExport can make it more accessible.
📌 CanExport funding covers up to 50% of expenses for:✔️ Market research & competitive analysis✔️ Trade shows & business development trips✔️ Marketing & localization efforts✔️ Intellectual property protection & legal fees
If cost is a barrier, exploring grant opportunities can make exporting a lower-risk decision.
Final Thoughts: Should You Expand Internationally?
Exporting is an exciting but strategic decision. By using the Ansoff Matrix, assessing your readiness, and choosing the right market entry strategy, you can confidently expand into new markets.
Need help figuring out if exporting is right for you? Let’s chat! Contract us.
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