Emerging markets are a critical source of growth, especially for established companies in mature economies. For some companies, entry into a new foreign market may be the only way to satisfy investors’ never-ending demands for revenue and earnings growth. This is particularly the case today, when many companies face uncertain or stagnating economic conditions at home.
Burgeoning markets such as Brazil, Russia, India and China present some of the clearest opportunities for growth. Yet there are countless other markets where the potential opportunities are even greater. The main question is how to capitalize on them.
One of the keys to effective new market entry is the ability to move people across borders quickly and efficiently. We call this capability global mobility.
New Market Entry and Global Mobility
In the past, international job assignments usually centered around a relatively small number of long-term executive relocations. However, as more and more companies set up shop in new and emerging markets, overseas deployments are becoming a standard operating practice. Here are some examples of the global mobility requirements associated with new market entry.
1. Assigning key people from the established market to help the local in-country operation get up-and-running quickly (while managing risk more effectively). This type of assignment might include anyone from senior executives and top managers to sales people, technical staff, and trainers.
2. Bringing foreign managers and staff to the established market for training.
3. Moving specialists from one market to the next. For example, a group of engineers or trainers who specialize in setting up new market operations may finish their assignment in one country and then move directly to their next foreign assignment.
4. Providing global teams with an opportunity to work face-to-face. Although business relationships are becoming more and more virtual, in some cases there is just no substitute for face-to-face contact. For example, critical activities such as strategic planning and global design are often most effectively conducted in person.
Facing the Challenge
These days, international assignments are not only becoming more commonplace; they are also becoming more varied. Foreign deployments now run the gamut from permanent assignments and traditional long-term assignments to individual projects, short-term assignments, and even international commuting.
To enter a new market effectively, businesses need a variety of global mobility options that can address this large and expanding range of requirements. They also need improved global mobility capabilities that make initiating and managing international assignments a process that is fast, flexible, repeatable, and efficient.
Unfortunately, many companies continue to manage international assignments the same way they have for decades—as a high-touch service focused on a small number of long-term relocations. This traditional approach is labor-intensive, and often requires a long lead time. It also tends to center around the needs of the employee, rather than the needs of the business. As a result, its value to the business is often relatively limited.
