How to expand your business internationally with DHL Express

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Expanding businesses overseas is a goal shared by many ambitious entrepreneurs and companies worldwide. After all, international growth is one of the key ways to expand horizons and tap into new markets — the same applies to businesses in Cambodia. 

With increased connectivity to the global market, Cambodia is an attractive destination for businesses looking to tap into new opportunities. Add to that the "Digital Economy and Social Policy Framework of Cambodia 2021-2035" policy and expected exponential growth in sectors, such as retail and more, Cambodia is more of an appealing market than ever before.

And just like how international businesses are looking to step foot into the Cambodian market, it is only natural for businesses within Cambodia to do the same and aspire to expand beyond their own borders. But why and how can DHL Express empower businesses in Cambodia to unlock the full potential of international business expansion?

What is the meaning of overseas market expansion?

The concept of international market expansion refers to the strategic growth of a company beyond its domestic market, venturing into multiple locations across international borders. It is a natural progression for successful businesses that have experienced growth in their original location and have explored expansion within their own country. 

It is crucial to note that true global expansion occurs when businesses transcend national boundaries and seize opportunities overseas, even if it begins with expanding into neighbouring markets. At this stage, it becomes a truly 'global' or 'international' expansion, marking an exciting milestone in the business journey.

Understanding internal and external growth of businesses

When it comes to business expansion, there are two fundamental paths to achieving growth: organic internal and external growth.

Internal growth, or organic growth, occurs when a business expands its operations internally. This type of growth can be achieved through various strategies. These include increasing production capacity, developing new products, exploring new international market opportunities, and expanding the customer base. For example, Samai Distillery, Cambodia's first and only rum-producing business, is now exporting its premium rum to new overseas markets like Spain despite already exporting to France and Singapore. This is one way of broadening its reach and establishing a stronger global presence.

On the other hand, external growth involves a business expanding through external means, typically through mergers or acquisitions. This approach offers several advantages, including faster access to new products or markets, increased market share and access to economies of scale. External growth can be exemplified through mergers, where two businesses combine to form a new, larger entity, or takeovers, where a business acquires a majority stake in another to gain control. 

What are the advantages of expanding a business internationally?

Expanding a business internationally offers numerous advantages that can drive growth and success. 

  • Allows businesses to acquire global talent: Tapping into a diverse pool of skilled workers from various locations not only brings fresh perspectives and skill sets to the workforce but also provides valuable insights into different markets and cultural nuances.
    Reduces costs by leveraging lower labour and material expenses overseas: International expansion is more cost-effective in this regard – businesses can even strategically relocate operational functions or outsource back-office tasks to optimise their resources.
  • Enhances resilience of a business: By operating in multiple countries, companies can mitigate the risks associated with localised economic or political events. For example, with the next Cambodian general elections set to take place in July 2023, there is a possibility that political tensions could pose hurdles for local businesses to operate optimally. Therefore, it is clear that such downturns in one market can be balanced by growth in another, ensuring a more stable and resilient business overall.
  • Opens new overseas expansion opportunities: Market research may uncover untapped demand for products or services in specific countries, allowing businesses to seize the first-mover advantage or cater to unique customer preferences. This can be a pivotal part of a growth strategy, expanding the reach and market share of the business.
  • Enjoy tax and compliance benefits: Certain countries may offer more favourable tax regimes, including lower corporate tax rates or specific incentives, such as research and development (R&D) tax credits. By strategically setting up entities in jurisdictions with tax advantages, businesses can optimise their tax position when expanding internationally.

When should a company expand internationally?

To determine the right time for international expansion, companies should consider several key factors. 

For one, thorough market research is essential to understand the demand, competition, and trends in potential target markets. Achieving financial stability and having attained sustainable growth are also crucial prerequisites for expansion. 

Beyond that, assessing the company's competitive advantage and unique value proposition will help gauge its suitability for a new environment. And before expanding internationally, businesses must evaluate their scalability and operational capacity while simultaneously navigating legal and regulatory considerations. 

Proactive risk assessment and mitigation strategies must also be in place to navigate potential challenges. Lastly, access to skilled talent and human resources plays a pivotal role in successful international expansion. 

Riding the global expansion wave with DHL Express

In today's competitive global market, companies seeking international expansion must leverage strategic solutions to distinguish themselves from the competition. One critical aspect is optimising cross-border logistics and supply chain management. 

To unlock the full potential of your business's global growth, partnering with a comprehensive solutions provider is essential. That's where we come in. With industry expertise and tailored services, DHL Express can empower your business to reach new heights, ensuring you stay ahead in the global expansion journey.

1. Empowering export opportunities

DHL Express empowers businesses by offering a robust network and capabilities that open up export opportunities. With over 20 years of industry experience, a team of dedicated supply chain experts across 82 offices in 46 countries, and a Global Governance structure ensuring standardised processes, we can deliver industry-leading results. 

Moreover, with an unparalleled global footprint supported by a market-leading transportation offering, we enable businesses to thrive wherever they operate. Boasting a comprehensive network of major facilities, particularly in the Asia-Pacific region, which offers a wide range of value-added activities through strategically positioned Regional Hubs and Cross-Docking Operations, DHL Express supports your international expansion with ease.

2. Streamlining supply chain optimisation

The success of international expansion depends on a well-optimised supply chain. Being committed to streamlining supply chain optimisation, DHL Express provides comprehensive solutions to enhance the efficiency of your logistics and distribution processes. This ranges from a selection of Integrated Solutions and Transport Solutions to Warehousing Solutions. 

With end-to-end supply chain visibility and IT integration, DHL Express offers complete visibility and information provision, enabling you to execute, review, and analyse performance seamlessly. This also works to minimise operational risks and drive end-to-end continuous improvement. Additionally, with expertise in documentation management, timely and accurate customs documentation can be ensured. Doing so will prevent delays, demurrage charges, and disruptions to distribution centre planning. 

Our warehouse and inventory management services further contribute to supply chain optimisation. By improving inventory efficiency and accelerating response to changing customer demand, businesses can effectively manage inventory, streamline operations, and ensure product availability. 

3. Enabling e-commerce success

In the ever-expanding world of e-commerce, DHL Express plays a crucial role in enabling the success of online retailers. With a focus on last-mile delivery, DHL Express provides reliable and efficient delivery solutions, including door-to-door courier delivery and next-day delivery, ensuring timely shipments and customer satisfaction. 

Leveraging technology-driven solutions, we also streamline e-commerce operations, allowing businesses to optimise their processes and meet the demands of online shoppers. Whether it's delivery management, shipment insurance, Saturday pick-up or other optional services, DHL Express empowers businesses to thrive in the cross-border e-commerce landscape. 

Unlock international growth with DHL Express

As a leading international logistics service provider, DHL Express has a proven track record of enabling seamless delivery fulfilment and supply chain solutions for businesses. With our comprehensive range of integrated solutions, we empower you to tap into the vast potential of overseas expansion. Trust in our expertise to navigate the complexities of international shipping, ensuring efficient operations and customer satisfaction. 

Expand your business internationally and unlock new avenues of growth with unparalleled services by opening a DHL Express business account.