Internal factors that may jeopardize your plan of internationalization


By Marcelo Andrade | Published 3/04/2018

When a Brazilian company arrives in Canada, they do not know what to expect and they assume that they will face similar challenges back home.

Shortage of options. You may have a good list of contacts which you have gathered but that list is usually very limited compared to the overall size of the market.

Below are the other main factors that jeopardize your plan of internationalization.

Burden on Key People

One of the main factors that can jeopardize your plan of internalization is the burden that it brings on the company’s key people. Usually the person who is well-equipped to take care of the internationalization is also the person who is more equipped to be in charge of the existing operations in Brazil.

How do you manage these two big responsibilities at the same time? When the key person comes to Canada to take care of internationalization, that would mean that person is not in Brazil to take care of essential things like growth, operations and day to day client relations. But when that key person stays in Brazil to take care of those essential things, then that would mean that he is not in Canada to advance the interest of internationalization.

Learning Curve

There is a natural time to climb the learning curve. It is impossible to expedite the learning curve just as it is impossible to expedite what you are cooking. If you need to bake something for 40 minutes, you will not achieve the same results if you choose to microwave it for 5 minutes.

Certain things do require time. Learning, adapting and developing relationships in a new business environment are some examples of those things. It takes time to climb the learning curve. This is definitely always going to be present.

Low Visibility

Last month, we talked about the uncertainty affecting the decisions and this uncertainty happens because of low visibility of what’s ahead. When one arrives in Canada, there will definitely be low visibility. It will be difficult to see far ahead in terms of what is really happening and what things will materialize favorably or unfavorably.

These are the main challenges that a company will find when trying to set up a new operation in a new country and these are definitely big reasons why that ricochet effect happens. These are the main reasons why, despite having a lot of contacts and a lot of information, things do not materialize as thought of in the beginning.

Marcelo Andrade

Marcelo is the founder of Lucalex, a Toronto-based company founded in 2012 to structure business opportunities in Brazil and Canada. Contact information:

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