Conducting a Feasibility Study
When considering international business expansion, a feasibility study must first be conducted correctly to evaluate whether such a goal is possible.
In this section, let’s take a detailed look at the methods of evaluating feasibility from various angles.
Is Your Company Capable of International Expansion?
Evaluating the risks unique to overseas business in concrete terms, then preparing a risk aversion plan before commencing international expansion is the most basic of basics.
Let’s start by taking a look at whether or not your company is capable of international expansion.
Do you have a business model?
A key important factor when considering feasibility of international expansion is the business model.
International expansion may be a prime opportunity to think carefully about what the strongest business model is for your company.
Have you considered risk management?
Overseas countries have their own forms of PL insurance, instruction manuals, corporate credit checks, contracts, laws, and business customs.
International expansion would not go smoothly if a company tried to sell steering wheels and gears exactly the same as they are sold in Japan.
Are you managing your intellectual property?
In order to maintain your edge in the overseas market, it is essential that you go through the necessary registration and rights acquisition processes (e.g. patents, trademark, design, etc.) not only in Japan, but also in the country you are exporting to or expanding into.
Do you know about import/export regulations/standards?
Export regulations/standards are applied to products being exported overseas from Japan.
You must conform with the import regulations/standards of the respective countries you wish to import to. Unless you conform with both exporting and importing regulations/standards, you won’t be able to export your product from Japan, nor import your product to the target country.
