What’s challenging SME exporters? Why do companies go global? Why are non-digital companies becoming serial acquirers of digital properties? Read on and you will discover.
The Small Business Exporters Association (SBEA) has recently released its 2016 Small Business Exporting Survey. The survey, conducted February 22 to March 14, 2016, compiled feedback from 530 small-business owners, 58 percent of whom had some experience in selling merchandise or services to customers outside the U.S.
What’s the aha from the survey? Not much. It’s not new to find out that most SMEs export physical goods, that exporting takes less time than you think, and that there are numerous resources available to resolve export-related challenges. We don’t need a survey for that. What is new is that many SMEs are requesting payment in advance as a preferred method of payment on international sales (and yes, concern about getting paid still remains the #1 pain point for SMEs when venturing into an overseas market).
In this interview with Zhang Kehui, chief financial officer of China Shenhua Energy Company, Accenture explores the challenges and opportunities in executing a global expansion strategy. An interesting insight … “a business never goes global in the pursuit of pure profit — there has to be a long-term fit with the overall business development strategy.”
Digital properties are being sold like hot potatoes. Why? According to Strategy+Business, “In their determination not to be left behind, many traditionally non-digital companies have jumped into the market by becoming serial acquirers. The acquisitions have given these companies overnight access to software and cloud technologies that they probably wouldn’t have developed on their own.”
Expect more of these types of deals in the future where a traditional company may have great potential in a given area but may need to pull together a few new digital capabilities to realize an opportunity.
Read more: Will You Be Mine in the Digital World?