From local success to global reach with AI

Alex Clansey at Venture Planner describes how technology can drive your business to new markets

In the early 2000s, a small online bookstore decided to branch out beyond books. This company, Amazon, leveraged technology to expand its product offerings and streamline operations, ultimately transforming into a global e-commerce giant. Amazon’s journey from a niche market to a global powerhouse illustrates the incredible potential of using technology to diversify and expand a business.

Scaling a business is an exhilarating journey filled with both challenges and triumphs. After overcoming the initial hurdles of launching a startup—securing funding, building a customer base, establishing a brand—the next natural step is expansion. Entering new markets or geographies requires not just ambition but a well-crafted strategy.

In today’s fast-paced and competitive landscape, leveraging technology is no longer optional – it will be an essential exercise. And among these technologies, AI is proving to be a game-changer in navigating market expansion.

The role of AI in market expansion

AI offers a powerful edge for businesses ready to expand. AI-driven predictive analytics can unlock valuable insights into market trends, consumer behaviour, and potential opportunities. By diving deep into vast amounts of data, businesses can make savvy, data-driven decisions and pinpoint the most promising markets for expansion. This strategic approach allows for smarter resource allocation and laser-focused marketing efforts.

Consider Goldman Sachs. Recognising the shifting landscape of consumer banking, Goldman Sachs launched Marcus by Goldman Sachs, a digital-first banking platform. Leveraging AI, Marcus quickly adapted to customer needs during the pandemic, offering deferred payments within 72 hours. This agile response, enabled by AI, significantly grew their customer base and deposits, demonstrating the power of technology in driving rapid, responsive growth.

Mitigating risks, optimising operations

Venturing into new markets presents its fair share of challenges, but AI plays a pivotal role in navigating these waters. By analysing historical data and current market conditions, AI can foresee potential hurdles and suggest mitigation strategies. This proactive approach empowers businesses to make well-informed decisions, reducing risks and smoothing the path to market entry.

AI’s impact extends beyond market insights and risk assessment; it revolutionises operational efficiency. AI-driven supply chain optimisation tools enable businesses to manage inventory, predict demand, and minimise disruptions. Efficient supply chain management is crucial for scaling operations to meet soaring demand without compromising quality.

Take Under Armour as an example. As the sportswear company expanded globally, managing its supply chain became increasingly challenging. Inventory issues and unpredictable demand threatened their growth. By employing AI-driven tools, Under Armour could forecast demand accurately, manage inventory efficiently, and ensure timely delivery of products. This technological shift supported their global expansion efforts and solidified their competitive edge.

Blending AI with traditional strategies

While AI offers significant advantages, traditional strategic approaches remain invaluable. Collaborating with local businesses, distributors, or agents provides priceless market insights, reduces entry barriers, and facilitates smoother operations. Understanding the target audience’s needs, preferences, and purchasing behaviour is crucial. Thorough market research, tailored marketing campaigns, and hiring local talent with cultural understanding are still essential ingredients for success.

AI can elevate these traditional strategies by providing data-driven insights, automating processes, and optimising operations. By integrating AI with traditional strategies, businesses can boost their ability to successfully enter and thrive in new markets. For example, Marcus by Goldman Sachs combined AI-driven market analysis with local customer feedback to tailor its services, achieving remarkable success in both the U.S. and U.K.

Leveraging AI for market expansion

Integrating AI into your market expansion strategy can seem daunting, but breaking it down into actionable steps can make the process more approachable. Start by identifying areas in your business where AI can have the most immediate impact, such as customer analysis, inventory management, or marketing strategy.

Implement AI tools to optimise these areas, then gradually expand AI integration across other operations. Regularly assess the performance of AI applications and adjust strategies as needed to ensure alignment with business goals and market conditions.

Challenges into opportunities

Expanding into new markets is a thrilling and complex endeavour, but with the right strategies and cutting-edge technologies, businesses can navigate these challenges and achieve impressive diversification. AI offers transformative tools for market research, risk assessment, customer engagement, and operational efficiency. By leveraging these tools, businesses can future-proof their operations, seize new opportunities, and continue thriving in a global market.

A successful expansion demands a holistic approach, blending technological innovation with strategic planning, thorough market research, and a deep understanding of local markets. Drawing from industry experiences, integrating AI into business strategies has proven transformative for many companies.

By embracing digital tools and AI, businesses can build a resilient, innovative enterprise capable of thriving in uncertain times and scaling new heights of success in the ever-evolving global marketplace.

Alex Clansey is Co-founder and Chief Executive of Venture Planner

Main image courtesy of iStockPhoto.com and Leontura