Introduction

In this age and economy, everyone who owns a business will want to expand the business globally with the motive of making more income and also reaching out to other people, in this write-up we are going to examine the benefit that comes from the global expansion of a business and also the challenges that are involved in it because counting just the benefits will deprive a business owner from enjoying the benefits but knowing the challenges will help a business owner to plan how to manage those challenges and also enjoy the benefits that comes from global expansion of a business.

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For example, a business is located in Lagos State and people in Lagos State are enjoying the services or products of the business at some point the owner of the business might decide to move the business not just to Lagos but also to Abia State and other states of the country, gradually the business owner might also think of taking the business to another country like Ghana Cameroon and elsewhere.

All these require wisdom and knowledge to be able to reach the target of making more gains by reaching more people.

Challenges of expanding business globally

When a business is still within the same country, the challenges are easier to manage, but when a business has moved globally, the challenges become more difficult to manage.

Now one of the biggest challenges that face business while expanding globally is cultural differences because the customers in another country may likely be different in culture and the way they view things from other countries, to progress it is vital to study the culture and tradition of a country before taking a business service and products to that country, the business and products should be tailor in a way that will adapt to the culture and tradition of the country.
Studying the culture of the country will also help a businessman to know if the business will progress in that country.

For example, let's say a business that deals with meat or chicken or any form of protein is taken to a vegetarian country. It is likely such a business will not progress in such area because, due to their culture, they might not be able to patronize such business.

That was just a little example of what global expansion can face when there is no proper investigation of the culture and traditions of a country before expanding the business.

It is also vital to study the level of income of a country before taking businesses or services to the country because that will help a businessman to know the market strategy that will work in that country.

Before setting up a business in a foreign country, there is a need to have more employees needed to have a business facility, another necessary thing that requires money and time, if not well planned, a business owner might find it challenging because the cost of living can be higher affecting business and services in a foreign country.

For a business to progress there is a need for consistency and proper reputation management, this can be challenging sometimes because for a company to maintain its brand name and reputation,consistency in providing products and services in a foreign country requires time and money, and inconsistency will reduce the productivity of a business in a foreign country

Also, there is operational complexity when expanding business globally because it's always challenging to distribute products and services in multiple countries at the same time, as some countries might be lacking products.

For example, there is a supplement company that globally expanded to Nigeria because they have a lot of countries where they supply their products. Most times, you find out that they have limited products in Nigeria, which also makes it difficult for them to make adequate profit from Nigeria.

So before expanding a business globally, a business owner should consider using and investing more in technology to help the business reach the goal of satisfying customers in other foreign countries.

A business owner who wishes to expand his business globally should also keep in mind that when there are economic or political crises it will affect the business when there are wars that might likely result in currency fluctuation recessions and inflation the business will also be affected, just like what we say in some countries today that are experiencing civil unrest the businesses over there will not be progressing like before.

Having this challenge in mind might help a business owner to plan on how to have limited stocks of products in a foreign country's store but at the same time try as much as possible to always have the product in the store, which can be challenging.

Some countries have some complex regulations that can make it difficult for a business to progress in their country, and that can be challenging if a business owner does not make a proper investigation because investigating in the country.

The above are challenges of global business expansion let's see the benefits of global business expansion

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Benefits of global expansion of businesses.

Global expansion of businesses has numerous benefits, it helps the business to acquire goods and services from countries with lower costs which can help to improve the profit margin of a company.

The supplement company I mentioned above was the first to get to Nigeria and this gave them the opportunity to make a huge profit before other supplement companies were able to get to Nigeria, so expanding a business globally provides a competitive advantage to the business owner and it helps them to build strong brand recognition and gain more customers feedback.

Global expansion allows a business to get more employees that are skilled and can help the business to grow, because abilities and wisdoms most times depends on one's culture and tradition.

There are many benefits, but the major benefits is that it helps business to make more profit by reaching to people in different parts of the world with the product and services.

conclusion.

Yes there are challenges but a business that has the goal of growth will not limit itself because of challenges rather the business will diverse a plan that wil help him to cope with those challenges and enjoy the benefit that comes from global business expansion.

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