Global Market Considerations & Interview with Robert Harfouche

In this episode we will discuss the following:

– Things you should consider when entering the global market

– Tips for customer retention

– Interview with Robert Harfouche founder of Efiester and Just-Help based in France

Global Market Considerations

So you want to enter the global market? You already know all about import and exports; you feel ready! 

Good! But there are some things that may require your consideration. 

Before venturing out, there needs to be a clear understanding of the politics, the culture, and the economic environment of the region you are planning to enter. 

Politics

Ah! Politics! Amazing how politics finds its way into every sector, no matter how much you try not to play politics it always comes back to play with you! 

So, you probably know that there are laws that govern trades with different countries. As a business importing and exporting globally you should know these laws and abide by them; however, these are not the political considerations we are talking about here. 

There are things that are not as obvious as the typical import/export regulation.

If you are planning to engage in business with other countries you should understand the politics of the region, and not just the policies of the region. 

For example, is there political instability? The market may look great , but the political instability can gravely hinder business in that area. Is there transparency in the transactions? Or are there unforeseen costs that your business will have to account for like bribery? 

Additionally, there are certain countries that discourage foriegn  investments because they want their products sold. Their laws may allow you to import your products, but that does not mean it will have a market. Other countries require a quota of national made products to be sold within the country in conjunction with what is entering the country. This however can depend on the sector. So knowing the ins and outs of the political influence on your sector is imperative for the success of your trade and even more if it is a direct investment.

Culture 

Culture is another element that can play a tremendous role in the success of your business in the global market. It is something that is usually overlooked due to the legalities of the global market process. However there are cultural aspects that need to be considered for the success of the business to be undertaken. 

For example, there are societal traditions that are accepted in some countries that are not in other countries. In some Asian countries when giving someone a business card it is customary to hold the business card with both hands and with the right side up. Otherwise it will be considered disrespectful. 

It would follow that if you are seen as disrespectful then your business will mostly like not succeed in that area because you will find little to no partners.

In this case we can see knowing the culture can impact a business. 

Knowing the culture is essential for both sides of the business transitions, not just partnerships with businesses. 

It is important to know cultural customs like the business card scenario for the sake of business partnerships, but it is also important to know cultural costumes for the sake of understanding customer needs. 

Let’s take European countries as an example. 

Most European countries tend to celebrate Christmas as not only a religious celebration, but also a cultural event.  During that time, certain items are sold around these countries that will  not have a market in countries that do not primarily celebrate the birth of Christ.  Being aware of the importance of the need created by this cultural event, you can then tailor your production to fulfill that need, and focus on these countries at that time vs other countries that will not have the same needs. 

In this case, culture does not only encompass traditions, but also language, religious beliefs, holidays, and education system. For example, there are certain names of products that would not translate well in direct translations. They give off the wrong signals. 

If you speak Arabic and you have a Netflix account, you will notice that some of the shows have a completely different title in English than they do in Arabic. This is done so that the viewer is not deterred by an incomprehensible title or so the wrong idea is not conveyed. Netflix does so out of understanding that language is a key component to culture and that words can make or break the endeavours. 

Economic Environment

Apart from the politics and culture of the region, it is also important to be aware of the economic environment that surrounds the country you wish to work in.

Is there an economic infrastructure?

What is the average income in the country?

What kind types of economic struggles do people living here face?

There are certain countries that are more developed than others. Global market looks different in these countries than in the ones that are looking for basic needs. So, which of these should your business be a part of? 

Usually business opportunities are better where is a well established economic infrastructure, by that I mean the country’s banking systems, the educational system, transportation system, and communication. If these systems are well established in the country then business in that country becomes easier. This is because each of these systems influences in some way or another how the business is carried out. For example with a good transportation system commodities are easily transferred from one location to another.    

So, trades are not just about laws and regulations, but also what we can do after the products have entered the market

Why bother with these considerations?

There are benefits of creating companies that grow beyond borders. When we talk about examples of multinational corporations we tend to think of giant companies like Coca-Cola, Walmart, Pepsi, and to many of us that seems like something out of reach. Let’s be honest, although we hope that our businesses will reach those heights, that is not always the reality, but that does not mean we should not strive for growth. All these companies started one step at a time and worked extremely hard to get to where they are today, so can you! 

There are certain advantages that come with multinational companies. One of these advantages is that they help resolve trade problems. Let’s say you have firms in two different countries, the firm in country A cannot trade with country C because of high tariffs, but the firm in country B can trade with country C because there are no trade barriers, so by being multinational the firm is able to bypass certain trade issues that could arise. 

Article

https://blog.hubspot.com/service/customer-retention-strategies

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