A global expansion strategy is a structured way of scaling your company’s domestic operations into international markets.
A strong global expansion strategy ensures that your company is prepared for the cultural, legal, and operational complexities that arise from growing into new markets - rather than reacting to challenges as they arise.
And as we’ll explore in this article, if you get your global expansion strategy right, you’ll be better placed to manage risks, navigate local regulations, and maximise your growth.
In short, it’s the foundation stone for long-term global growth!
The most successful strategies all share several common ingredients.
- Clearly defined objectives: any expansion should align with existing business goals, whether it’s increasing revenue, diversifying risk, or enhancing brand recognition.
- Thorough market research: it’s crucial you understand the market, your competition, consumer behaviour & local regulations in other countries.
- Cultural & operational adaptability: expanding companies need to adapt their GTM strategy, marketing, HR operations to fit new markets.
- A structured talent acquisition strategy: it’s important that your hiring strategy aligns with local availability and delivers the growth of your company.
So how do you get started?
In the next section, we’ll share our 7-step framework for global expansion success, whether you’re a series A startup or an established multinational.
Step 1: Define clear global expansion goals
Global expansion should be driven by specific, measurable objectives rather than vague aspirations of "going global."
So before booking those international flights to scope out that snazzy new office space in Singapore, ask yourself: what exactly are you trying to achieve?
Are you expanding to tap into untapped revenue streams? Do you want to reduce dependency on a saturated home market? Have you spotted an opportunity to access international talent pools? Will an expansion grow your global brand presence?
Your answers to these questions will shape everything that follows.
What’s more, different types of companies might have very different reasons for expanding internationally.
For example, a SaaS company might aim to generate 15% of its revenue from European markets within 18 months. By contrast, the manufacturing company is expanding because it wants to reduce operational costs by 20% by moving production to Southeast Asia.
If in doubt, we’d always recommend using the S.M.A.R.T. framework—specific, measurable, attainable, relevant, and time-bound goals that create clear benchmarks for success and ensure your global expansion strategy doesn’t remain stuck in the realm of vague aspiration.
Let’s look at some examples.
The key is using the S.M.A.R.T. framework to transform vague intentions into strategic direction:
Specific: “we will launch our SaaS platform in the German market" rather than "We'll expand to Europe."
Measurable: "we aim to acquire 200 enterprise customers in the first year" instead of "we want to grow our customer base."
Attainable: "we'll establish a local team of 5 key employees" rather than attempting to replicate your entire domestic operation immediately.
Relevant: "entering Germany addresses our need for EU data sovereignty compliance for our existing global clients instead of expanding simply because competitors are doing it.”
Time-bound: "we will complete market entry by Q3 2023" rather than an open-ended commitment without deadlines.
Step 2. Conduct thorough market research
One of the costliest mistakes in global expansion is assuming that strategies that worked domestically will automatically succeed internationally. Market conditions, consumer behaviors, and regulatory environments can differ dramatically across borders.
Your market assessment should thoroughly determine whether demand for your product or service is genuine, the current status of the competitive landscape and market saturation, regulatory and legal requirements, cultural preferences and buying behaviors and pricing expectations and payment norms.
Even seemingly minor factors like payment preferences or customer service expectations can vary widely between regions. Thorough research allows you to anticipate challenges and customize your approach to fit local market conditions.
Step 3. Select your optimal method of global expansion
There's no universal approach to global expansion. The right model depends on your company size, industry, resources, and risk tolerance.
Let’s take a quick tour of some of the most common expansion models.
Exporting
This is the lowest risk entry method, allowing a company to test demand for their products or services without the need for significant local infrastructure (e.g. setting up an office).
For instance, let's say your company was a UK-based electronics manufacturer. You might begin selling products to German distributors while maintaining all production domestically. This approach minimises investment but offers limited market control,
Licensing or franchising
This method enables rapid expansion through local partners who understand the market. This model generates predictable revenue through fees and royalties without heavy capital investment, though it sacrifices some operational control and risks potential quality inconsistencies.
Establishing a foreign entity or subsidiary
Establishing a foreign subsidiary ensures complete alignment with corporate strategy and captures all profits but requires substantial upfront investment and deep knowledge of local markets.
Using an Employer of Record
An Employer of Record offers a streamlined approach to hiring international talent without establishing legal entities in foreign markets. Using an EOR comes with a number of benefits for expanding companies, especially startups, scaleups or companies looking to test a new market for the first time.
Some of these benefits include.
- An Employer of Record will only charge a flat fee for its services, meaning that the costs of market entry are often lower and more transparent.
- EOR providers can offer valuable payroll, legal, benefits & HR support in new markets, enabling your company to stay compliant with local employment laws.
- EORs are better placed to help you onboard new global hires quickly, letting you build a global team in a matter of weeks.
Joint ventures
This method involves creating shared ownership structures where risk, investment, and profits are distributed between partners.
McDonald's successful entry into India came through a 50-50 joint venture with local entrepreneur Vikram Bakshi, allowing them to navigate complex regulatory environments while adapting their menu to local preferences (though this joint venture later went sour).
This model balances control with risk-sharing but demands clear governance structures to avoid decision-making deadlocks.
This approach ensures complete alignment with corporate strategy and captures all profits but requires substantial upfront investment and deeper knowledge of local markets.
Acquisition
Acquisitions offer an immediate market presence by purchasing existing local businesses.
This strategy provides instant access to established customer bases, operational infrastructure, and market knowledge but comes with premium pricing and potential integration challenges.
Whichever expansion model you choose, it’s vital that it aligns with both strategic objectives and practical constraints.
Early-stage companies with limited resources might begin with exporting or licensing before evolving toward more capital-intensive models as they gain market traction.
Digital businesses might favour partnership models that leverage existing platforms, while manufacturing companies often require more substantial local infrastructure through subsidiaries or joint ventures.
The most successful global expansions often evolve through sequential models, starting with lower-commitment approaches to test markets before progressively increasing investment as market understanding deepens.
This is one of the reasons why new methods of expansion such as Employer of Record are becoming so popular - they allow globalising businesses to test new markets quickly, cost effectively and
4. Ensure you’re adapting to localised markets
Cultural adaptation in global expansion goes far beyond marketing and product localisation - it profoundly impacts how you build and manage your global workforce.
Even sophisticated multinational corporations have faced costly setbacks by misunderstanding local employment expectations and workplace norms.
Understanding local employment regulations and benefits
Every country has distinct legal requirements governing employment that reflect deeper cultural values. These include working hours, minimum benefits, termination procedures, and employee rights.
In France, the legally mandated 35-hour workweek and five weeks of paid vacation represent not just compliance requirements but deeply embedded cultural values about work-life balance.
The same is true with benefits.
Successful adaptation requires going beyond minimal compliance to understand the spirit behind these regulations.
Companies that treat local labour laws as mere regulatory hurdles rather than expressions of cultural principles often face employee dissatisfaction and struggle to attract top talent.
Navigating workplace hierarchy and communication
Organisational structures and communication styles vary dramatically across cultures.
For instance, Western companies often emphasise flat hierarchies and direct feedback, while many Asian business cultures value clearly defined reporting relationships and more nuanced communication approaches.
Adapting compensation and motivation strategies
What motivates employees differs significantly across cultures.
While monetary incentives might be highly effective in some regions, others place greater value on work-life balance, professional development opportunities, or status recognition.
Understanding these differences allows companies to design compensation and recognition systems that truly resonate with local employees. A standardised global approach to compensation is much more likely to fail.
5. Hire the Best Local Talent
Hiring global talent can make expansion simpler and more cost-effective, especially if the target market is very different culturally and linguistically from your existing markets. Having staff on the ground helps you to:
- Tap into local expert talent.
- Gain first-hand knowledge of the market and local culture.
- Benefit from local language skills.
- Save money by not having to travel as much or relocate existing staff.
- Ensure your current leaders maintain business success in your home country.
- Gain trust in the local market by building on existing relationships.
- Leverage existing business contacts and networks.
If you’re worried about the costs of hiring a lot of new talent, don’t! You don’t need to hire a fully fledged team in each new market to reap the rewards. Think strategically:
- Do you want customer support staff available in the local time zone?
- Do you need sales representatives who can speak the local lingo?
- Would you benefit from project managers who have strong existing relationships with local service providers?
Every business has different needs, so evaluate what local talent would benefit your global expansion strategy the most.
5. Create a sustainable global talent strategy
Beyond simply hiring local employees, successful global expansion requires a sophisticated talent strategy that balances immediate cost considerations with long-term growth objectives.
Don’t just default to cutting costs
It's tempting to initiate your global expansion by focusing solely on employment costs. This flawed thinking often leads companies to rely on contractors as they plan their global expansion.
While this approach offers immediate flexibility, it creates significant limitations:
In many markets, top talent strongly prefers full-time employment with benefits over contractor status. By limiting yourself to contractors, you risk access to the best available talent.
Contractors typically feel less connected to your company culture and mission, making it harder to build collaborative global teams.
What initially seems cost-effective can lead to higher expenses through misclassification risks and constant turnover.
Watch: James Bricknell explains how to find the right talent to support your global talent strategy
Develop data-driven market intelligence
James Bricknell, a recruitment expert for Bradford Jacobs, highlights the iGaming industry in Malta as a cautionary tale—where an oversaturated job market led to unsustainable salary inflation and high turnover.
Without proper market research, companies can unwittingly enter talent markets where competition has driven compensation to unsustainable levels.
A robust talent strategy requires continuous analysis of market conditions, including:
- Competitive mapping of local talent pools and employer competition
- Tracking regional skill development trends
- Monitoring migration patterns that affect talent availability
- Understanding true employment costs beyond base salaries, which can reach additional 50% in employer contributions in some regions
Balance short-term market entry with long-term sustainability
Look for approaches that balance small-scale market entry with access to fully-employed, engaged professionals who can validate your new market and drive growth.
This might mean starting with a smaller team of permanent employees rather than a larger workforce.
The most successful global companies recognise that different markets offer unique combinations of talent
For example, while regions like India and the Philippines provide specialised tech talent at competitive rates, others might offer strategic proximity to target customers or key business partners.
Consider the tradeoffs between markets with lower costs versus those with fewer language barriers or cultural differences. The apparent savings from hiring in the lowest-cost region may be offset by communication challenges or alignment difficulties.
Maintain flexibility in your approach rather than over-investing in one or two overseas markets prematurely.
A diversified talent strategy allows your company to adapt as market conditions and business needs evolve.
6. Build strategic local partnerships to accelerate growth
Even with employees based in your target market, you’ll likely need to work with local partners in some capacity. For example, you may need third-party logistics partners, legal advisors, or marketing & PR agencies to execute your international expansion strategy successfully.
However, partner selection requires thorough due diligence. Evaluate potential partners based on their demonstrated track record with similar companies, financial stability and operational capabilities.
Let’s look at a few examples
Employment and compliance partners
We’ve already discussed how EOR and PEO (Professional Employer Organisation) providers can partner with you to manage your employees day-to-day in new markets.
Note: unlike EORs, PEOs typically require you to have a legal entity in the country.
HRIS partners
Human Resource Information Systems (HRIS) partners provide the technological backbone for managing a global workforce.
Providers such as Workday or BambooHR can manage employees across multiple countries with features supporting different languages, currencies, and compliance requirements. These partnerships are essential for maintaining consistent HR processes across diverse markets.
Banking and financial service partners
These types of partnership can facilitate cross-border payments, manage currency risks, and navigate local financial regulations.
Companies like Wise (formerly TransferWise) or Mercury provide specialized services for international businesses that traditional banks may not offer efficiently.
Supply chain partnerships
These are crucial for companies selling physical products. Local distribution partners with established networks can dramatically reduce time-to-market and navigate complex import procedures or last-mile delivery challenges.
Market development partnerships
These can include any of the following:
- Marketing and PR agencies with local expertise help navigate cultural nuances, media landscapes, and consumer behavior patterns that might be invisible to outsiders.
- Sales channel partners provide immediate market access through established customer relationships. Whether through value-added resellers, distributors, or sales agents, these partnerships can generate revenue much faster than building a sales operation from scratch.
Legal partners
Legal partners specialising in your industry can offer critical guidance on regulatory compliance, contract law and intellectual property protection.
7. Invest in the right technology & tools as you expand
Expanding globally without the right technology is like trying to drive a sports car without working engine. The right tech stack doesn't just support international operations: it accelerates them.
From recruitment to finance to communication, the right technology can be the difference between success and failure.
Applicant Tracking Systems (ATS)
Tools like Teamtailor automate recruitment processes that would otherwise overwhelm small HR teams, including resume screening, candidate tracking, and interview scheduling.
Project management platforms
Of course, these prevent communication breakdowns as teams spread across time zones.
Different solutions serve different scaling needs: Trello works well for engineering sprints across distributed teams, Monday.com helps global sales and marketing teams track pipelines and campaigns, while Asana handles complex workflows and dependencies for larger operations.
Financial planning & forecasting tools
These give you the data-driven insights that set you up for long-term success.
Solutions like Brex for expense management or Carta for equity and cap table management help startups track spending across currencies, forecast regional runway, and present investor-ready financial projections.
Global HRIS and payroll systems
maintain employee records across countries while accommodating different leave policies, benefit structures, and compliance requirements.
These platforms create consistent employee experiences regardless of location while dramatically reducing the administrative burden of multi-country operations.
Equipment management solutions
These can become surprisingly critical for distributed teams. Platforms like Growrk, which spans over 150 countries, allow companies to track, procure, and retire equipment for global employees—eliminating the chaos of managing technology assets across borders.
Why a global expansion strategy matters
The best expansion strategy can transform your company from a regional player to a truly globalised organisation. Let’s put it another way. It’s the difference between Uber's $70 billion valuation after entering 72 countries and a localised ride-sharing startup you’ve never heard of.
Most people can tell you what a global expansion strategy is - but it’s also crucial to understand why they matter.
Ensuring you pick the right sequence of markets
One of the biggest mistakes companies make is expanding reactively rather than strategically.
In the previous section, we talked about the importance of thorough market research.
But a winning global expansion strategy is about more than this. It’s also crucial to pick the right sequence of markets for the right reasons.
Entering a market simply because competitors are doing so, or because an unsolicited partnership opportunity arises can be a recipe for disaster.
A great example of this is Target’s failed expansion into Canada.
Instead of carefully assessing market readiness, the retail giant rushed its entry, opening 124 stores within two years without properly evaluating local supply chains or consumer expectations. By 2015, it had suffered $2.1 billion in losses and was forced to withdraw entirely.
Imagine if they’d taken a more calculated approach.
They could have tested a smaller number of stores, adjusted pricing models, and taken care to refine their supply chain logistics. In a parallel universe, Target could have been a case study of cross-border expansion done right.
Minimising compliance risks as you expand
Every country has its own regulatory landscape, from foreign ownership laws to rules around employment benefit contributions .
Companies that don’t fully understand these complexities risk legal troubles, financial penalties, or even being banned from operating.
Let’s go back to our Uber example from earlier. Uber has faced repeated regulatory battles worldwide, from licensing issues in London to worker classification lawsuits in California.
Contrast this with a company like AirBnB, which has worked closely with local governments to shape short-term rental regulations and has created the conditions for more long-term success
Enabling you to adapt to cultural nuances & local employee expectations
In the first section, we explained that cultural adaptation is key to a global expansion strategy. Get this wrong and your expansion falls at the first hurdle.
Failing to align with local work culture can lead to low employee engagement, high turnover, and difficulty in establishing a strong employer brand.
Companies that localise their HR policies—whether by offering culturally relevant benefits, adapting leadership styles, or adjusting work hours—are more likely to attract and retain top talent in new markets (more on this later).
The result is a global expansion strategy which will sustain your company’s multinational growth for years to come.
