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What Are The Benefits Of Global Expansion Services In Kenya? by acreatykenya: 6:29am On Apr 11, 2018 |
Global expansion services in Kenya for fast-growing companies are beneficial for several reasons. By expanding the operation into the new geographical location, company can establish a new base of eager clients without the immediate threat of competition. Expanding the company globally provides opportunities. In today’s competitive market platform and economy, companies of all sizes are establishing operations in foreign lands. Making the decision to either expand or start the company overseas can be a tricky decision. However, according to a few reports, for many business owners doing business globally comes with incredible benefits. A 2016 survey found that 60-70 % of firms believe that global expansion services in Kenya is necessary for long-term growth and expansion. Here are the most important advantages involved with business expansion on an international scale or platform: • Global Exposure- Keeping the business local can limit the potential for growth and high profit. Some examples of the kind of downsides companies face when they operate in only one country comprise various types of exposure to risk that increase a company’s susceptibility to market forces. There are diverse kinds of exposure that can limit a company’s bottom-line: Economic exposure includes exchange rate changes that can affect the organization both negatively and positively. Transaction exposure deals with the converting of foreign currency. It can be useful to the company if is located anywhere where the foreign money is valued more than the dollar or vice versa. Translation exposure also includes exchange rates, but specially, the impact of translating foreign money to the home (or other) currency. Through cautious timing, this can lead to an increase in reported profits (or negative side… increased tax liability). Finally, tax exposure is the income tax obligation incurred because of earnings a foreign currency. • Favorable Business Climate- A new geographical location may offer satisfactory economic conditions than the home country. The new country may offer an economic climate that is positive and "business-friendly," offering benefits such as fewer environmental regulations or lower taxation. • Relationships with Additional Companies- When you are concentrating on business performance, networking is a key. In a global market, even more value should be placed on boosting positive relationships with government officials and other companies. Relationships with international distributors and suppliers, as well as other companies from the country, can be an incredible resource for the organization. • Revive Your Business -Entering foreign markets can help rejuvenate a struggling enterprise. Businesses experiencing a shrinking market share or operating in a saturated market can find new outlets for their products and services in another geographical location. The MNCs or other companies depending on definite resources can easily find what is needed overseas. • Access to the right talent- Another major advantage of going global is the opportunity to access to new pools of talent. In several cases, international labor can offer companies truly unique advantages in terms of improved performance, increased productivity, diverse educational backgrounds, advanced language skills and more. • Getting information about a new place- Learning a new culture and a new market insight can help make the organization better-rounded. Having an understanding of new work culture and people can give a new perception on relations with customers, and may even benefit you worked well with business partners and domestic customers. • Foreign Investment Prospects- Foreign investment can be tremendously valuable for the business as several companies already recognize the same. When they opt for business expansion, the companies can more easily learn about these investment prospects and how beneficial they can be for the particular company. • Improving Reputation and Brand Image of the Company- Businesses that can successfully go international and market their offerings to a totally different geographical population will enjoy the prestige of calling themselves an international company. Overseas Expansion services increases the exposure to the business, calls a larger "global footprint." As a result, the business owner can gain a greater appreciation and branding throughout the world. This can facilitate even more expansion of the business in the future.
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