Losing International Market Share Comes Home to Haunt You
Losing International Market Share Comes Home to Haunt You
The domestic market is just another market segment in a global battle. A company cannot afford to ignore the international market, because a foreign competitor who is allowed to develop a substantial, unchallenged international market share will inevitably use that strength to attack your home market.
The Dynamics of Global Competition:
- Initial Export Success: A company with a breakthrough product will often have initial success in foreign markets, as customers are hungry for the new technology and willing to make compromises.
- Market Maturation: As the market matures, local customers become more demanding. They want products that are adapted to their specific needs, not "almost right" imports.
- The Competitor's Rise: If the initial leader fails to adapt its product, it creates a perfect opportunity for a local supplier to emerge.
- The Inevitable Export: That local supplier, having built a strong base in its protected home market, must then export to achieve economies of scale and continue growing. Their primary target will be your domestic market.
The choice is simple: fight the competitor on their home turf, or wait for them to become strong enough to fight you on yours. This is a core reason why you must Be International or Fail.