Article

30.09.2020

Where will your 'international' roadmap take you?

Assessment? Check! Your strategy? All mapped out. You've also already determined your target market. But you've still got some way to go before you can cross borders... Some 'required stops'.

You're fully convinced of the benefits of internationalisation by now. You see it as an important lever for the growth of your business. But it's a process that doesn't happen overnight and is the result of a long decision-making process. You've carried out a preliminary assessment of your options before venturing into foreign markets. A checklist and initial indispensable considerations, so to speak, to find out whether the project was worthwhile. You then considered the choice of the most appropriate strategy for your business... You considered direct solutions such as e-commerce or commercial distribution. Or perhaps more sustainable establishment models, such as opening a branch or subsidiary, implementing synergies through a joint venture or a merger acquisition. This decision is based on a thorough analysis of the situation specific to your organisation. This approach often requires meticulous guidance. You will have also determined your target market during this process, which is a very important step. Your project's success now depends on the implementation of an action plan. And this phase inevitably brings with its new considerations and decisions...

NO SUCH THING AS ONE SIZE FITS ALL

In any case, your plan depends on your internationalisation strategy. The launch of an e-commerce platform or the choice of an intermediary imposes different requirements – in terms of due diligence obligations, financial resources or the definition of the target market, for example – than a merger acquisition. What's more, every merger-acquisition process is unique. What does this mean? That each adventure requires a tailor-made approach that considers the specific characteristics of your company, your products or services, your sector, your competitors, your added value, and more. Furthermore, the mapping of your international growth will be highly influenced by the characteristics of the target market. No magic formula then? Correct, but we do point out some common 'required stops' that deserve your attention. 

    1. The 'local' considerations

    France is not Belgium. And Belgium is not Germany and certainly not Japan or Brazil. Each country has specific characteristics that shouldn't be taken lightly. It's more than 'folklore'! These are real 'keys' that you must assess correctly in order to make a difference. Numerous (internationally renowned) companies have come to grief while trying to do this. It's another commercial reality that can have a major impact on your action plan:

    • Cultural codes and language
    • Relationships with partners
    • Corporate culture
    • Consumer habits and expectations
    • Do’s and don'ts
    • Don't lose sight of the regulatory aspects: they're essential!

    Note that a product that is successful in the domestic market will be perceived differently elsewhere. It will prompt you to take certain preliminary actions: call in experts from the country in question, carry out a more in-depth market study, participate in more local trade fairs, etc. 

    2. Adaptation of your commercial range 

    An important reflection that causes you to reassess a series of parameters:

From a commercial point of view: do your products and services meet the target group's specific needs? Does your range satisfy the previously identified needs? Is it sufficiently appealing? How will you position yourself? Does the quality meet the local standards? And so on.

From a legal point of view: the key question is whether you comply with the local market's regulatory or administrative requirements. Do you need special certifications? Do you have to comply with specific technical obligations? And so on.

    You must answer these questions to determine whether your market access strategy is ready in all respects: marketing and communication, value proposition, distribution methods, logistics chains, payment methods, etc. Not to mention your pricing policy. It may show that you need to make some adjustments at the production, distribution or commercial level. 

    3. Choice of partner 

    This isn't an easy task. Whatever your internationalisation project, this point plays a key role. You therefore need to set very clear objectives, missions and criteria that will serve as a guide to identify, prequalify and select the best local partners. The risk – and therefore the importance – of this approach is even greater in the case of a merger acquisition. A long-lasting marriage that must not fail... You will therefore need resources and time to complete your due diligence process. 

    4. You still have a way to go... 

    The following steps are no less important. We can give you the following tips in the meantime:

    • Carryout a thorough risk analysis.
    • Prepare a budget for your expansion project and ensure you work out several scenarios, because you can always come up against surprises. Consider the fiscal context and the local market's specifications (infrastructure costs, employment costs, etc.).
    • Plan distribution and transport circuits.
    • Prepare a detailed schedule for your project's roll-out.
Need more information? Do not hesitate to discuss this with your relationship manager or contact us using this form.
Article

23.09.2020

Internationalisation: which strategy should you apply?

Conquering international markets is an indispensable growth lever for companies. Such a project can take different forms or follow different paths: from e-commerce to mergers and acquisitions.

International expansion can be an important growth factor for your company and an undeniable source of opportunities – both commercially and in terms of innovation or resilience. After a complete assessment of your current situation, an inevitable question follows: which strategy should you apply to realise your project? There's no magic formula or mapped-out path: in reality, you often adopt a wide-ranging approach based on various strategies. Nevertheless, we do see some broad outlines. And each has its own strengths and limitations. Whatever you decide, your choice should fit into an overall thinking and be in line with the current situation and the future of your business. The objective? Increasing your chances of success and keeping the risks under control as much as possible. 

1. Direct and indirect export

This is naturally one of the most widely used strategies for conquering foreign markets. You can sell your products abroad through one or more channels:

  • E-commerce: E-commerce is a fast and accessible solution to get 'far' with limited resources. Internet sales have grown very strongly in recent years but have a significant impact on the logistical workload. This includes not only technology and conformity, but also the commercial aspect. You are far from your target market and must deal with competitors from all over the world, while the internet knows no borders – and that's both an asset and an obstacle.
  • A local intermediary: A gamble without too many risks, because you make use of the power of local sales – your agent delivers the customer's orders locally and you transfer them. The only thing left to do is to decide how to distribute your products. In this regard, it's important that you make full use of your knowledge of the foreign market. Think, for example, of consumers' consumption habits and expectations. Although this approach does not require major investments (payments on commission), it isn't entirely without risk. The success of your project is entirely in the hands of your local contact, leaving you to count on that partner's reliability.
  • Commercial distribution: A similar approach to conquering the international market. This strategy can be implemented quickly and is the result of cooperation with independent distributors who are based in your target area. They buy the goods and then sell them, enabling you to benefit from their expertise and network. Unlike the intermediary, this distributor takes several tasks off your hands (invoicing, collection, marketing costs or import costs). Choosing the right partners and determining the terms of the contract is no easy task. After all, your project's success depends on it...
  • Transfer of patents or technology: This is a way to make your know-how or technology pay off, not your products. This transfer of skills gives a foreign entity the right to use your methods or innovation within the framework of a previously established contract (geographical area, duration, etc.). An opportunity to go international where you 'outsource' production, sales and distribution. Contract preparation is one of the stumbling blocks of this approach.

2. Local establishment 

Another model for internationalisation is to establish your business abroad. This means that you go local: you establish your entire value chain in another country, or you produce, distribute or sell your products there yourself. This geographical approach necessarily requires greater investment, but it also gives you more clout. This approach is also a way of reinforcing your resilience: the financial and commercial risks, as well as the pressure on your value chain, are spread over several areas. Over the years, a more flexible approach has also been introduced, allowing companies to move more flexibly in line with the international situation. Various options are also available here:

  • Subsidiary or branch: In both cases, it's a matter of establishing a firm and lasting foothold in the local market. However, the project requires a solid foundation and a long-term vision. You should also think carefully about the legal status: do you opt for a subsidiary or for a branch? Consequently, when making this decision, take into account various factors: the degree of autonomy, the desired degree of decentralisation or consultation, the legal and tax implications, whether or not to produce locally (to take advantage of cheaper raw materials, for example), the financial resources that you can mobilise, and so on. In any case, a perfect lever for applying the well-known formula 'think globally, act locally'.
  • International joint venture: This principle is based on the creation of synergies. Your company joins a company that already has a local presence and both companies complement each other. Each company benefits from the other's strengths while sharing the activity's risks, control and common costs. Such a joint venture or partnership often requires a customised legal structure. As you can see, a joint venture is not an easy marriage. It's therefore crucial that you find the right partner and come to an agreement with them concerning each party's input and responsibilities.
  • Merger or acquisition: This growth strategy offers a few advantages. What's the greatest advantage? A merger or acquisition is a method of consolidating and diversifying your business. It's also a 'quick' way to conquer a new market by exploiting the local company's competitive advantages (technological, commercial, etc.). Such a project naturally entails not only potential benefits, but also risks. For example, you may misjudge the sources of value creation or the risks, or have difficulty integrating.

As you can see, your international project's success depends on many factors. And, first and foremost, on your own strategic choices and your ability to develop a clear vision of exactly what you want to achieve. From the development of a commercial partner network to a sustainable local presence, there are many options that deserve not only thorough consideration, but also professional guidance.

 

Ready to do business internationally with confidence?
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Article

16.09.2020

A full 'assessment' before you go abroad

We can no longer deny the benefits of internationalisation. But is your business ready for it? A thorough assessment to measure your project's success is therefore a must before you cross the border.

Just because your business is doing well in our country doesn't mean that you can just jump into the export market. An international breakthrough is an important strategic (and necessary) choice that requires extensive preparation. The first step is to take a detailed look at the state of affairs of your company. Because that way you can:

  1. Highlight your strengths and success factors: a specific skill, your expertise, your brand image, etc.;
  2. Identify your weaknesses: both internal (poor knowledge of the target market, need for funding, etc.) and external factors;
  3. Prepare your structure for 'new' demands: in terms of human resources and in financial, organisational, legal or commercial terms;
  4. Draw up your roadmap: make the necessary changes, maximise your assets and find the right solutions for your weaknesses.

 

A COMPLETE TOOLKIT

Such an assessment is not market research in the literal sense of the word, although some elements will eventually overlap or complement one another. The assessment should also enable you to gain insight into existing opportunities (competitive advantage, commercial trends, etc.) and threats (changes in legislation, major competition, etc.). To do that, you must be able to look at your foreign target group with the necessary distance.

There are many tools for this. Examples include the SWOT analysis, Porter's five forces model, the Boston Consulting Group matrix or the PESTEL analysis to measure the influence of macro-environmental factors. So, feel free to use those tools, but also remember the importance of step-by-step guidance.  

 

A MUCH-NEEDED SELF-ANALYSIS

Give attention to different elements. To achieve a relevant assessment, you must also find answers to a series of important questions:

  1. Create your 'identity card'
    Take an unbiased look at your organisation. What are your values, culture, references, image, etc.? How are you perceived by others? Does your positioning match your identity? Through these questions, you'll also gain insight into the reasons for your successes and failures on the international market. It's interesting to repeat the positive points and learn from your mistakes. 
  2. Analyze your position on the domestic market
    Take stock of your commercial position. Examine the evolution of your recent results and your weighting in your segment (market share, competition, degree of dependency, etc.). Find out what stage your products and services are in (launch, growth, saturation or decline). Next, you can consider your market's prospects and future: how will it evolve? A very important question at a time where the challenges of the sustainable transition are radically changing many sectors.
  3. Assess your products and services
    Each country has its own specific obligations and standards. So, ask yourself whether your products and services are 'compliant', both commercially and legally. Perhaps you need to adapt them? Or maybe your production or delivery method needs to change (e.g. to respect the cold chain and guarantee reasonable delivery times)? In other words, are you ready for the step from a commercial point of view?
  4. Lay bare your capabilities
    If you want to conquer foreign markets, you must be able to cope with that growth rate on an operational level as well. Can you increase or adapt your production capacity to the new demand? Are you ready for that in terms of supply and logistics? Also take into consideration the reliability of your partners and suppliers. And don't forget that your inventory will increase, and you must also have guarantees in that regard as well.
  5. Examine your financial situation carefully
    Going international means a big investment for your company. So, take a close look at your finances and see whether you have enough funds to bring the project to a successful conclusion. You need these resources, for example, to launch commercial initiatives locally (while waiting for the first revenues), to 'transform' your company in the necessary areas, to support your activity in your own country or to recruit additional staff.
  6. Carry out an analysis in the area of human resourcesTo export, you need qualified and skilled staff (production, sales teams, communication, after-sales service, R&D, etc.). You may also need to train staff or recruit new talent with international experience. Although internationalisation can be an extra motivation for your employees, it will also require additional efforts from them. So, don't lose sight of the 'human' factor either!

 

This complete audit of your structure gives you everything you need to make the right choices. Have you got the commercial strengths, the human and financial resources, the operational capabilities and the necessary experience to take the step? Do you need some extra support to adjust certain parameters? Or are you postponing the launch to find the right solutions for some weak spots? The adventure can begin once you're ready!

 

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Article

27.04.2021

Will you be Entrepreneur of the Year 2021?

Will you succeed Stow and I-care as the Entrepreneur of the Year for 2021? Why shouldn't you? Apply before mid-May and your company may just win this prestigious award.

A dazzling event honoring the very best companies

This annual award ceremony is an EY initiative in collaboration with De Tijd and BNP Paribas Fortis. Last year the event had to be celebrated online. The advantage was that the general public was able to live stream the event and watch Prime Minister Alexander De Croo present the Onderneming van het Jaar® award to Stow and Entreprise de l'Année® award to I-care. Jan Jambon presented the Flemish government's Scale-up of the Year award to Robovision and David Clarinval the French version tot Proxyclick. The new winners will be announced on 6 and 7 December, 2021.

Big picture and little picture

The coronavirus pandemic is still affecting businesses this year. The new Entrepreneur of the Year and Scale-up of the Year will have undoubtedly shown excellent growth, innovation and governance as well as a sound approach to the pandemic. Bill Schley's book The Unstoppables calls this the big picture and the little picture. Successful entrepreneurs always keep a close eye on their core business and the financial side of things as well as on the little picture. This is the right emotional mechanism for properly dealing with obstacles, failure and risks.

From an entrepreneurial viewpoint

Didier Beauvois, Head of Corporate Banking at BNP Paribas Fortis, is proud that his company has been a partner of this event right from the start. “Alongside the current pandemic, two major challenges that businesses have to address in 2021 are new technologies and sustainability. Companies that want to remain relevant need to be flexible and creative and must keep reinventing themselves. Our mission is to guide them through this transformation process in the best way possible, because those entrepreneurs are the driving force behind the Belgian economy. Therefore, we like to put these innovators in the spotlight every year and is why we encourage Belgian companies to apply."

Why take part?

Winning the Entrepreneur of the Year award or Scale-up of the Year award offers your company many benefits. These awards have a strong national and international reputation that will help you to strengthen your company's brand awareness. The awards ceremony attracts a great deal of media interest in the winners and finalists, and offers excellent networking opportunities. A place in the finals is also a great way to boost employee motivation at your company.

So don't wait any longer: apply for the Onderneming van het Jaar® 2021 award, Entreprise de l’Année award or Scale-up of the Year award via the Dutch EY website or the French EY website before mid-May. All information on the criteria, selection procedure and registration process are available there. The finalists will be selected in June.

Article

27.04.2021

Our bank's experts help advance energy transition via Solar Impulse Foundation

Two specialists from our bank are among the top experts in this international foundation, which collects profitable solutions for a faster transition to sustainable energy.

Sustainability has been an important pillar for our bank for many years. For example, we have been carbon neutral since 2017, accompany companies in their energy transition and support start-ups and organisations that work with renewable energy. The Solar Impulse Foundation therefore has been benefiting from the sponsorship of the BNP Paribas Group from its inception.

Reconciling ecology and economy

The Solar Impulse Foundation was founded by the Swiss psychiatrist and pioneer, Bertrand Piccard, who makes it his life’s mission to demonstrate the opportunities of sustainable development. In 1999, he was the first to make a non-stop balloon journey around the world and, in 2016, he completed that journey again with a solar-powered aircraft. Since then, Piccard has used his popularity to publicise solutions that can protect the environment profitably. The ultimate goal? Motivate decision-makers and companies to set more ambitious environmental targets and better energy policies in order to achieve carbon neutrality.

1,000 sustainable solutions

Four years ago, Solar Impulse Foundation announced that it was looking for 1,000 sustainable solutions worldwide to accelerate the energy transition. That unique portfolio of solutions should then become an essential part of all environmental decisions, debates and political negotiations. Specifically, these are solutions that companies already have or will introduce to the market and that are economically profitable and technologically feasible, but do not yet have the visibility they deserve.

The targeted 1,000 solutions were reached on 13 April 2021. But because innovation never stops, the Foundation continues to add solutions.

Expertise from our bank

To gather as many innovative solutions as possible, the Foundation receives help from many partners and an extensive pool of more than 300 experts from companies around the world. Since any company may present its product on the Foundation’s website, these experts must assess the registered solutions objectively and in detail in three areas: profitability, environmental impact and technical feasibility. For a few years now, BNP Paribas Fortis employees have also devoted themselves to this task.

Quentin_Nerincx_2

One of them is Quentin Nerincx, Senior Advisor Cleantech at our Sustainable Business Competence Centre, who advises companies on becoming more sustainable. “I didn't hesitate to apply," says Quentin enthusiastically. “It’s an exciting project with a wonderful and ambitious goal. Every month, the Foundation sends me a file for analysis. Each solution is studied by two different experts and, if they both make a positive judgement, the solution is labelled by the Solar Impulse Foundation. This quality feature can help to accelerate the implementation of the proposed solution - for example, a new technology or a product.” 

Gunther_Brems

Gunter Brems, Sustainability Expert Housing & Sourcing Services, also lends his expertise: “It is an honour to be part of this prestigious project. I have assessed several files in 2020, which was an enriching experience not only to share knowledge but also to acquire new knowledge. It is great to see how innovative some companies are dealing with a changing world, just as our bank does, and how to look for sustainable alternatives together.”

 

Helping our corporate customers with their energy transition

“This project is also interesting for my job as a sustainability advisor at the bank, because I keep up to speed on new solutions that are being developed worldwide. This allows me to expand my expertise continuously and to contribute broadly to corporate clients looking for solutions for their energy transition", adds Quentin.

At the end of last year, Quentin was informed that he is one of the top 20 experts providing expertise to the Solar Impulse Foundation. Gunter even made it to the top 10. These rankings are mainly based on the number of solutions analysed and the quality of the reports. “We are delighted that our input is appreciated”, the two experts say.

Government guides

The collection of more than 1,000 approved solutions can be found on the Solar Impulse Foundation website. This summer, the Foundation is also publishing a Solutions Guide that will enable governments, companies and individuals to find and implement concrete solutions on a large scale. With this tool, everyone can find solutions to problems in specific geographical, industrial or financial environments in just three clicks.

The Foundation will also provide various public authorities with a Cleanprint, a kind of report and plan for governments and companies to achieve their climate goals using the solutions collected, in accordance with the Paris Climate Agreement. The report will also indicate where public authorities can modernise their legal frameworks for the ambitious implementation of these solutions. The first Cleanprint will be presented by Bertrand Piccard at COP26 Climate Summit in Glasgow in November 2021.

Jean-Laurent Bonnafé, CEO of BNP Paribas: “There will be no future for society without a successful, long-term energy transition. This transformation can only be undertaken collectively and requires technical and technological service solutions. In taking up the challenge to select 1,000 solutions which encourage environmental protection while also being profitable, the Solar Impulse Foundation is helping us to reach this goal in a very practical way and in line with the aims of the Paris Agreement.”

Seeing that the solutions collected are actually followed up by government leaders and other decision-makers will be the crowning glory of our work", conclude Quentin and Gunter.

Need advice on how to make your business more sustainable?
Contact our experts at the Sustainable Business Competence Centre

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