A business venture can guarantee success by their articulating operational, marketing and finance strategies to international markets around the globe. Specifically, an integral way of entering an unexplored market would be by opening up branch offices in another country and formulating business strategies accordingly. In a country like the UAE where flexible economic conditions and digitalisation efforts are amplified, there would be little to no difficulties in structuring organisational structures and reaching consumer markets that would increase the profitability of your business.
Whether it be financial services, retail marketing, auditing services or a digital marketing agency, business set up in Dubai will help you reach soaring heights with great infrastructure facilities and a talented workforce surrounding you. To have access to profitable markets in Dubai, you first need to determine your economic jurisdiction and come up with a commendable business plan. Read on to find out more about entry to new markets in Dubai.
Ways of Entering a New Market
There are several ways of entering a new market and diversifying your operations to create an international presence. Here are some of the main methods you can consider when expanding your established business;
- Branch office
A branch office is an outlet of a parent company that is usually a representative office which is not a separate legal entity. Generally, a branch office is established when there is a need for business expansion whilst maintaining control. The same operations and business strategies of the parent company will be used whilst other marketing and HR tasks will be catered to that of the home office and consumer market. Learn how you can set up a branch office in Dubai.
- Subsidiary
Wholly-owned subsidiaries and not wholly-owned subsidiaries provide 100% or more than 50% ownership to a foreign company and are controlled by them. A plethora of advantages that include easier financial reporting, shared resources leading to lower costs, and lower tax liabilities are enjoyed by companies that enter as subsidiaries.
- Franchise ownership
Dubai is a country that caters to a great amount of famous, global franchises due to its emphasis on innovative processes and digitalisation. Franchising is a method that includes intellectual property being sold to a franchise in another country where operation is conducted under the parent company’s name. Processes and procedures specific to the parent company must be followed by the franchise.
Benefits of Entering a New Market
There are several benefits of trying to establish an international presence with your business units and here are some of the most important ones to be aware of;
- Lower risk
By entering new markets, your business will be spreading financial risk, operational risk, legal risk and across a variety of different markets. In case of lower sales or performance in one area, losses can be compensated for by gains in other markets.
- More consumers
Entering new markets helps you diversify your customer base and portfolio. Having an array of target markets automatically means that you’ll encounter larger profit margins.
- Larger variety
With a larger variety of products and services available at hand for consumer markets, the drive for competition and innovation will be at its peak.
To Conclude
Entering new markets requires thorough research and calculated strategies to be used during implementation, and it can generate immense value propositions for your business. To succeed in entering a new market, it’s important that you understand the depths, demographics, economic conditions and vital information about the customer segments. International market presence can not only help you be profitable in terms of revenue but also benefit business operations and experience built.