The current national economic scenario, since the global economic crisis started in 2008, imposes on companies the need to evaluate the business opportunities offered by foreign markets. Even in difficult times, exporting companies have been able to withstand international competition linked to the low production costs of some emerging countries thanks to a remarkable ability to adapt (also from a sectorial point of view) and by shifting their export strategy to other factors such as brand, product quality, distribution network and after-sales services.
Thanks to their resourcefulness, all of these companies have experienced and can testify to the advantages of internationalization. Here are the main ones:
Naturally, opening up to one or more foreign markets makes it possible to reach more potential customers with one’s own offer of goods and services and to significantly expand one’s market share. This will increase the company’s profitability, turnover, competitiveness, size, resources to be reinvested in production and the ability to withstand recessionary situations involving only the domestic market.
Take advantage of seasonal markets
By expanding the markets in which it operates, the company that offers products characterized by seasonality, i.e., sellable especially in certain periods of the year (ice cream, air conditioners, gardening equipment, etc.) can have productive stability by reaching the countries that at a specific time will be crossed by the most favorable period, benefiting from a continuous production cycle that, in addition to higher revenues, will ensure an optimization of production costs.
Extend the life of a product
More new markets, including emerging markets in this case, will allow a product to access a new audience once it has become unfashionable or overtaken by other innovations in domestic contexts. Customs and the usability of goods do not always travel at the same pace everywhere in the world, and yesterday’s great novelty in an advanced market may be today’s novelty in a new emerging market: for the company, this means expanding the production cycle in order to optimize even more the investment made to launch a given product on the market.
Knowing to innovate
Knowledge of a new market gives the company a broader view of the needs of the public, but also of different ideas, thoughts, lifestyles and experiences. All this is an advantage for the company, both in order to develop new ideas and to adequately address any changes in the market.
Be competitive at home
Experiences, skills and resources acquired abroad are always expendable in the market of origin to take advantage of greater competitiveness compared to the competition, which perhaps closing its borders has not had at hand inspirations and evolutionary processes to spend for the conquest of the public contended.
Finally, it should be emphasized that exporting from Malta offers numerous advantages, thanks to excellent bilateral relations with the major countries of the European Union and the Commonwealth, as well as China, the United States and Canada, Russia, the Middle East and the emerging African countries.
The Maltese government ensures businesses a series of support measures to promote themselves internationally, focusing on diplomatic missions and incentives that look in particular at innovation and digitalization for the export activities.
Malta Business Agency supports your company in its internationalization and export activities, to help you enter new markets and attract new clients by taking advantage of the benefits of the Malta system. For more information and advice, please contact our team.