Why should your company grow globally? While the Finnish market offers a solid foundation, its limited size often constrains long-term growth. This blog post explores the key considerations of international expansion beyond the “why”: where, when, and how.
When choosing a global market, the first step is to identify where your company can find a competitive niche. Begin with identifying the right focus markets and examine how ready your company is to adapt to foreign environments. In general, SMEs succeed internationally by using what they already have: their skills, contacts, and the ability to learn and adapt fast. You already have what it takes!
Networks in foreign markets help your company grow by giving practical insights into local customers, culture, rules, and competitors. The best market for your company is often the one where the right partners already exist: distributors, suppliers, customers, regulators, consultants, and personal contacts; all the stakeholders a company needs to engage with to operate internationally. This helps adapt products and services to local customer needs.
The best market for your company is often the one where the right partners already exist: distributors, suppliers, customers, regulators, consultants, and personal contacts
Markets with strong, accessible networks are often easier and faster to enter than markets with strong potential but weak networks. Examine opportunities with practicality: research networks, resources, decision-making, and entry strategy.
I have spoken with many companies about choosing the right market. It has surprised me how few do thorough market research on local consumer behavior and regulatory requirements – and yet, this isn’t always wrong. Sometimes a company already has enough information to move forward without it. Market research helps, but strong networks can sometimes replace it.
When evaluating potential markets, companies should utilize personal contacts, social media, and online resources to gather market insights. It is also important to establish partnerships with local distributors and trade associations. Companies should choose an entry strategy that minimizes risk and fits both what the company can do and what the market is like.
Not all markets behave the same way. Some are stable and easy to predict, and these markets reward careful planning and research. Others are fast‑moving and uncertain, where success depends more on flexibility, quick learning, and strong local partners. Understanding the level of uncertainty helps a company choose the right approach for each market.
Today, global markets are changing faster than ever. Geopolitical shifts, new technologies, AI, supply chain disruptions, and changing customer expectations can reshape business conditions in a matter of months. Being well prepared is more important than ever, and often more valuable than we realize.
No company succeeds alone. The lone wolf is a powerful myth, but the pack is what keeps a wolf alive. The same truth applies to companies entering global markets.
Marjukka Holopainen-Rainio, Lead Business Advisor
Sources:
James, E. E., Etim, G. S., Eze, F. J., Inyang, B. I., & Emmanuel, J. I. (2024). Foreign market network and internationalization of domestic firms: A systematic literature review. *World Journal of Advanced Research and Reviews*, 22(02), 1213–1239. https://doi.org/10.30574/wjarr.2024.22.2.1459
Chetty, S., Martín Martín, O. & Bai, W. (2023). Causal foreign market selection and effectual entry decision-making. International Business Review. Causal foreign market selection and effectual entry decision-making: The mediating role of collaboration to enhance international performance - ScienceDirect
