Globalisation Simplified: The European Entrepreneurs’ Handbook

Introduction: What is Globalisation?

Globalisation is a pivotal concept for entrepreneurs looking to create a successful business in the European landscape. In an era where competition knows no geographical boundaries, creating a globalisation strategy is essential for any business looking to thrive.

But what exactly is globalisation and how does it impact entrepreneurs? This guide takes a deep dive into globalisation strategy for European entrepreneurs and how you can harness its power to drive your business forward.

Understanding globalisation:

The free movement of products, ideas and cultures across borders is facilitated by globalisation. A phenomenon of the 21st century, globalisation has seen the rise of multinational corporations, economies of scale and trade blocs.

Globalisation is an important concept for entrepreneurs who are looking to take their product or service global. Having an in-depth globalisation strategy can help you successfully launch your product in a new market, reducing the likelihood of costly mistakes and cultural mishaps.

What drives globalisation?

Globalisation is driven by a multitude of factors. Rapid economic development, technological advancement and the global shift away from protectionism has all played a role in developing a truly global economy.

Trade liberalisation, which is the process of removing tariffs and other barriers to trade across borders, has seen a rapid rise in trade agreements and economic blocs. One of the biggest examples of this in the modern world is the European Union (EU).

With over 440 million potential buyers in the EU, you’ll be hard pressed to find an area with so much opportunity for avid entrepreneurs. A single economy that boasts the free movement of people, products and services to any of its member states, the European Union accounts for 14% of the world’s trade in goods.

There are 41 trade agreements between 72 countries in Europe, with 27 countries being members of Europe’s single economy. Many of the EU’s member countries have highly industrialised economies, like the Czech Republic, with others boasting incredibly high purchasing power among consumers.

If you’re looking to take advantage of the diverse marketplace within the EU, a strong globalisation strategy that understands the market and how to target it is paramount.

How globalisation affects economy – the EU:

Enterprises and consumers benefit from globalisation in the EU. Going global has fundamentally changed the job market here, as local talent are able to export their knowledge and skills to multinational corporations looking to operate in this area.

In fact, 20% of jobs are supported by exports to countries outside of the EU. Receiving an average of 12% more pay than other jobs, this has significantly boosted prosperity and standard of living for many European workers.

Many businesses in the area are taking advantage of lower production costs, no tariffs and reduced bureaucratic barriers to rapidly improve profitability and efficiency. Raw materials, technology and other factors of production are cheaper than ever before, and the EU has seen rapid business growth across almost all sectors.

Businesses can offer goods and services from one EU nation to another without having to relocate or open a new office. Plus, the lack of roaming charges makes online shopping highly accessible within the region, and 74% of consumers here choose to spend their money online.

All in all, globalisation has skyrocketed the growth and development within the area. Consumers here have high purchasing power and offer a lucrative market for any business looking to take their product global.

Globalisation strategy for Europe:

How do you implement an effective globalisation strategy for Europe? The market has cultural nuances and detailed rules and regulations all businesses must follow. The diverse nature of the area means a one-size-fits-all approach won’t work, and businesses need to be highly agile in order to launch successfully within the EU.

To begin, in-depth market research of your new target market needs to be conducted. Whilst your European target buyers may have similar demographics to your local market, it’s likely they will have differing needs, incomes and interests. Additionally, you’ll need to consider cultural sensitivity in your approach. It’s easy to have a blunder if you’re not aware of the cultural norms and customs of the market you’re targeting.

A great way to combat this is by partnering with local business consultants and other talent. As aforementioned, many EU employees leverage their skills and share their expertise with multinational enterprises. Take advantage of this and onboard an agency or consultant who will help you navigate the nuances of entering the EU market.

Having a knowledgeable team on the ground will protect your business from cultural missteps, and help you align your strategy and goals with the target market.

At Wissen Consulting Group, we help our clients establish trust and build relationships with our wide network of trusted, authorised European trading partners. From partnering with local manufacturers and distributors, to conducting consumer research and market analysis – we have the expertise to support your business expansion.

A cookie-cutter approach won’t facilitate your growth in the European market. Instead, an agile, targeted approach that aligns your goals with the needs and buying habits of your target consumers is fundamental for success. That’s why we work closely with you to develop a tailored strategy that considers all aspects of your business.

It’s also crucial to continuously monitor and validate your approach. Using data-driven analysis, we’ll help you stay up-to-date with industry trends, consumer behaviour and changes in regulations.

Final thoughts:

Navigating globalisation and leveraging its benefits within the European market can be achieved with a strong globalisation strategy. By working with a local business consultant who can help you develop a targeted, agile strategy that serves the needs of a new market, you’ll be setting your business up for success. Trust us to guide you through the complexities of entering the European market and help you dominate your KPIs and establish a strong market share within the EU. Get started today via the ‘Contact Us’ page.