International Trade: Which Businesses Get It Right?
This post was last updated on February 23rd, 2024
The UK has seen uncertainty over international trade over recent years. With the looming prospect of Brexit, it is hard for businesses to know how to engage with the global market. Despite this, the amount of SME and big brand businesses trading internationally grew by 6.6 per cent between 2017 and 2018. The fact that an estimated 340,500 UK businesses engage in international trade tells us that it is a potential key to success.
As the fifth largest trading country in the world, the UK relies heavily on the international market. Both SME businesses and larger businesses are finding various levels of success with this method, but who is doing it right? Lets take a look at how some brands have ventured into international markets.
Learning from example
Before a business begins to establish itself in the global market, it would do well to consider other businesses who have done the same. Brands have excelled and flopped in the global market, so preparation and learning from example is key.
Houghton International — Finding global success
Ever since this company was founded by Ron and Christine Mitten in 1984, they have gone from success to success. They specialise in many services such as motor pump rewindings. After just four years of steady growth, thanks to their focus on speciality work, the company was able to move to larger premises. Soon after, the company won a contract with a firm in Hong Kong, which provided a valuable foot on the ladder in terms of international growth.
After years of successful growth, Houghton International relocated to Newcastle upon Tyne. By ensuring every order was fulfilled to the highest quality, the company was able to stand out and build strong relationships with its clients. The process has certainly paid off: between 1984 and 1994, Houghton International’s customer count went from one to over 400.
Further success was secured by Houghton International when the company secured a business opportunity across the Texas oil market. Then, in 2001, the company was part of the UK’s top 100 fastest growing companies as listed in the Financial Times.
A recognised winner of the Services category in the North East Business Awards in 2018, it was clear that this business was going from strength to strength. The company had further expanded its range of services to include a dedicated industrial pump repairs service and testing.
Walmart — Failure to launch in Europe
Walmart is a company that has certainly made global efforts. They have stores in Africa, Canada, China, Japan, and of course, America. But the company did rather spectacularly misjudge their attempts to break into the European market when it set up shop in Germany.
Although Walmart is a well-known brand, it became evident that reputation can only get you so far. Undoubtedly Walmart had a consistent process, but sticking it too rigidly meant they lost out on the German market when their American style clashed with German tastes. For example, in a country renowned for its love of efficiency, having someone else bag your groceries did not sit well with customers. Plus, while Walmart is famous for its overly-enthusiastic greeters and smiling staff, these things didn’t translate well in Germany, or in Europe in general where people are little more reserved and favour personal space.
Walmart was left with no choice but to cut its $1 billion losses and had to withdraw from the German market in 2016.
How can we learn from these companies?
These two companies took a very different approach to the global market, but what can we learn from their successes going forward?
Key lessons include:
- Reputation building: Even in a digital age, word of mouth is a powerful thing. Small contracts can still make big waves, so by ensuring your business completes every contract to the highest standard, word will soon spread among the industry of your business name.
- Consistency: Your business must deliver results consistently. Fair or not, many successes can easily be tarnished by one oversight, and clients will certainly speak of such negative experiences far louder than they would of positive experiences.
- Growing within means: Being eager to grow as a business is fine but biting off more than you can chew will only lead to mistakes, impacting your consistency. Keep your short-term goals in mind as much as your long-term goals, and don’t be put off by going at a slower pace if needs be.
- One size does not fit all: Consistency is one thing when it comes to quality, but don’t mistake that as sticking rigidly to processes and service delivery. What lands well for an Australian client may not fly for a customer in Poland! It’s important to understand the cultural nuances of your prospective clients before you try to enter that market — failure to do so simply exposes your business as lacking awareness.
Sources
Recommended For You
Boost Your Business Performance with Professional WordPress Maintenance
Most Inside
Most Inside offers high-quality recommendations and valuable updates to enhance all aspects of your life, providing premium guidance and enriching experiences.
