The-Accountant-Jul-Aug-2017

Finance and investment
a) Use of Networks and partnerships
Access to information, knowledge gaps,
financial and internal infrastructural
challenges and innovation needs can
easily be overcome if a firm employed
the strategy of using networks and
partnerships with companies in the
foreign markets. Networking provides
solutions to the challenges of resources,
skills, expertise, knowledge and
experience. Ability to network with
both international partners and
local government enable firms
to internationalize through
exchange of information,
ideas, skills and
experience. For effective
internationalization
it is thus important
for SMEs to be
able to create good
networks locally
and abroad.
b) Development
of Niche products
Firms that are
able to develop
niche products for
the foreign markets
have the ability
to internationalize
effectively since they have
the capability to dominate
that market based on the ability
of their product to create demand
for itself. A firm is able to come up with
a niche product only if its innovative
capacity is higher than that of firms
in the foreign markets. With a niche
product it is easy for a firm to realize
maximum return within a very short time
before the product reaches the end of its
life cycle and before duplicate products
Constraints such as lack of
financial resources, human
resources, lack of expertise
in international market
and market management
as being major barriers to
internationalization of SMEs.
In this piece therefore, I try to
examine the various barriers
to internationalization
and how SMEs can
overcome some of them
for successful and effective
internationalization.
start flooding the market rendering your
product expensive. A very good example
of a niche product are the Apple products
(phones and computers) that still enable
Apple to make money even when there
are still a lot of competitors in the market
like Samsung and Sony.
c) Developing Brand identity
International marketing describes brand
identity as the most effective and powerful
tool of marketing. Brand identity is a tool
that helps companies overcome barriers
such as cultural complexities and
pricing. A firm with a strong
and visible brand would find
it very easy to penetrate
the international market
by overcoming threats
posed by international
competitors. Brand
identity as a tool
has been effectively
used in the fashion
industry. For example a
t-shirt with one of the
strongest brands will be
sold more expensive than
a non-branded one and
the customer would still
be willing to pay more for
the product. SMEs are thus
encouraged to invest in brand
and create a strong brand that
can compete in the international
markets.
14 JULY - AUGUST 2017