Etude

Making foreign moves pay off

International expansion requires a sure-footed strategy.

Par James Root and Josef Ming

First published on décembre 01, 2005
min


International expansion requires a sure-footed strategy. Bain analysis shows that more than 60% of geographic moves fail entirely, and only 17% of companies achieve profitable foreign growth. But for those who get it right,the rewards can be great. How can companies score similar successes in overseas fields of competition? Bain's research surfaced four major conditions linked to profitable international expansion: a strong domestic core; a repeatable expansion formula;customer differentiation that travels across national borders; and a favorable industry structure. By assessing these conditions, companies can predict whether foreign moves will pay off. Download PDF

International expansion requires a sure-footed strategy. Bain analysis shows that more than 60% of geographic moves fail entirely, and only 17% of companies achieve profitable foreign growth. But for those who get it right,the rewards can be great. How can companies score similar successes in overseas fields of competition? Bain's research surfaced four major conditions linked to profitable international expansion: a strong domestic core; a repeatable expansion formula;customer differentiation that travels across national borders; and a favorable industry structure. By assessing these conditions, companies can predict whether foreign moves will pay off.

Download PDF