Partner Article

Gaining a competitive advantage on an international scale

Tony Leech, Senior Corporate Banking Manager at HSBC’s Yorkshire and North East Corporate Banking Centre, offers his advice on gaining a competitive advantage on an international scale.

Considering international business growth opportunities is an exciting, but equally a daunting prospect for any company regardless of sector or size. Thorough preparation in advance will help maximise the chances of success in a new market. Below are a few tips to help get businesses on the right track with their international expansion plans:

Capitalise on local reputations

Successful businesses in the North East have worked hard to establish a solid individual reputation. In addition, together they can positively impact the reputation of the region as a whole; establishing it as an area containing significant expertise in specific industry sectors.

For example, HSBC’s recent Future of Business report identified Newcastle as a UK ‘supercity’, well on its way to becoming the leading science city producing world class scientific research, and pinpointed Sunderland as a growth area in low carbon transport. These industry strengths in the region can present opportunities for businesses when pitching to prospective clients. Like any organisation when tendering contracts, overseas investors tend to prefer to partner with businesses that have sound reputations and expertise.

Link up with other countries

As businesses increasingly compete on a global trade stage, access to the best goods and prices is more important than ever before.

To achieve this, UK businesses need to consider opportunities outside of their immediate vicinity and establish relationships with overseas businesses; as partnering with other countries can help to support growth in other markets. For example, supply chain businesses might link up to develop ‘customer-ready’ products as opposed to individual parts. By looking at the existing supply chain and considering new or alternative overseas suppliers, processes can be streamlined and the consumer’s experience enhanced.

Ensure that you have robust financial support

HSBC’s newly released Global Trade Forecast predicts that the UK is set to
increase its international business activity by around 60% to 2026. This shows that now is a great time for North East businesses to be capitalising on international trade. However, it is vital that businesses have the right funding in place before embarking on new business ventures and we would urge businesses keen to explore opportunities for growth to get in touch with their bank to discuss their plans.

This was posted in Bdaily's Members' News section by Tom Keighley .