For the success of any given business, the plan that the company makes is a vital tool to see it through success. The plan should always include marketing strategy. A marketing strategy shows the investors the way in which the investment is to take on the market. For the formulation of a good strategy, therefore, a business planner must have knowledge of the market the investment is to venture in and how ready the market is to receive the products the company will be producing. In addition to the nature of the market, the planner should also have planned ahead on how they could make their business bigger in the future. In most cases, the original market is used as a base to set up many other outlets in other areas.
Consider, for instance, the case of a business person who wishes to start a business in Spain. First and foremost, he must have had a plan made on how the investment is to make sales in the foreign market. It is here that the people in charge of planning must understand that the culture in America is way different from that in Spain. The Spanish culture is homogenous compared to the American culture. There is a variety of cultures in America whereas, in Spain, there is only the Latin culture among the people of Spain. The minimal diversity in Spain means that if the commodities the business wishes to invest are not liked by the people due to cultural reasons, there is no market to fall back to. Unlike in the united states where if one group of people does not value a product, another group will.
As earlier quoted, expansion of the business to other parts of the world is always part of the business plan. It is always the plan of the business partners to have their businesses grow to a universal level. In the case of the American investor in Spain, the move to have the Spanish investment spill off to Italy will increase the operational size of the business. Both Italy and Spain have a similar Latin culture. As a result, there shall be no challenge presented by cultural change. There will, be no need for the investor to start afresh the process of manufacturing the products, he could use Spain as the production point and have the products exported to the newly opened outlets in Italy. The Spanish outlet will, therefore, remain as a valuable asset to the investor.
The business may grow to a greater extent and wish to expand its operations to France. The move will mean that the company will have already have set root and had an impact in the Italian and Spanish market. The conquest in these two countries shall also have made the company be able to take over a good position in the European market. There shall, therefore, be minimal problems in the event that the company wishes to have its products marketed to other European countries. Having worked in Spain and Italy, the companies will by now be having an experience of the European culture and become conversant with the people’s expectations. They shall hence be producing products that are conversant to the culture of the Europeans. In addition to that, success of the business in two countries shall make the people confident in the products manufactured by the American, investor’s business. With time, the investment could take over the whole of Europe.