Starting with a good international expansion plan is essential – you’ll have the best success when you choose the highest potential markets, identify the best channels for entering those markets, and if your channel is using 3rd party distributors, enabling that channel to be successful.
But no matter how well you plan, and how carefully you select your distributor partners, things sometimes do not go according to plan.
Change is inevitable in today’s world. Companies everywhere need to stay nimble and prepared for changes that seem to come faster than ever before. And this is doubly true in international markets.
Maybe the distributor who served you well when you first 
entered a market is no longer capable of supporting a more mature, complex product offering. Perhaps the distributor has changed ownership and is no longer a great partner.
Government regulations and political conditions change, Currency exchange rates fluctuate wildly in some markets. New competitors enter the market. Maybe it’s even time to set up your own foreign office.
Whatever the reason, exporters must be prepared to make course adjustments when needed. Part of being successful in international expansion involves always having a backup plan. You must anticipate change, be flexible, and always have “Plan B” to remain competitive.
One of the many bad outcomes of having no real export sales plan is that you’re unlikely to have a good Plan B when you really never had a Plan A!
How do you anticipate change and stay flexible? Here are a few tips:
- Always, always follow local politics in your market. Know the history of the country or region, and watch for patterns.
- Keep current on market intelligence. Know what your competitors, both local and international, are doing.
- Always know what your next best alternative is in that market if things start to go badly with your distributor. Whether that is a different distributor, setting up your own office, walking away from the market, or a different strategy altogether, have a good idea what you’ll do next.
- Watch for transformative changes in your industry. It used to be that changes occurring in the U.S. took a while to trickle down to foreign markets, but this is less and less true. And more frequently, these kinds of changes are starting in foreign markets – even emerging markets.
- Know your walk-away point. Whether it’s the point at which you will decide your distributor or market conditions are no longer meeting expectations, be clear about where that line is. Too many companies continue to let conditions linger before taking decisive action.
Expect change, and constantly be ready to adjust your plans. Change is often disruptive, but also creates opportunities.
Get more tips on how to improve the ROI on your distributor export business by downloading our eBook: “10 Sure-Fire Ways to Ramp Up Your International Distributor Sales”
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