The Global Expansion Checklist
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The document provides a checklist for companies considering global expansion. It advises focusing on dominating the local market before expanding globally. It evaluates several factors for entering new markets: product/market fit and path to dominating the local market; language/cultural understanding; talent availability; competitive landscape; and potential for network effects across borders. Companies are scored in each area, with scores above 25 points indicating they are ready to expand globally and scores below 15 points suggesting they should not consider it. The checklist is meant as a reference to help evaluate readiness for global operations.
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The Global Expansion Checklist
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- 4. Advise Against Global from Day 1 • The world is complex. • Need to focus. • Maximize Leverage. • Pick one market to dominate.
- 6. Phase • Product/Market Fit? • Should be on track to dominating your local market. • Example: 10M downloads where the break down is 20% USA, 10% Japan, and 10 other countries with less than 5% is not dominating a market. • BUT! if they are all engineers than you are dominating.
- 7. Phase (Scoring) • (5 points) - Product/Market fit with clear path to dominating your local market. • (3 points) - Product/Market fit no clear path yet. • (0 points) - no Product/Market fit
- 8. Language / Culture • Do you speak their language? • Do you understand culture and nuances?
- 9. • (5 points) - Native Speaker, lived in the country. • (3 points) - Speaks well enough, immersed in the culture • (2 points) - Me No Understand Language / Culture (scoring)
- 10. Talent • Need to be able to hire the best talent in the market you enter. • Execution is everything. • Not enough due diligence on the country manager. • Need to treat it liking adding a cofounder. • They need to live and breath your company culture. • They need to be share the same passion, mission, vision. • need a lot of coaching
- 11. • (5 points) - We have the A-Team, The Furious 5, The Avengers. • (3 points) - Subpar team. • (0 points) - meh. Talent (scoring)
- 12. Landscape • Competitive • Is there competition? • Need to assess the competition rigorously. Can you really win? • Funding Environment (IE. Grab Taxi ($250M), Didi Kuaidi ($1.5B), Delivery Hero ($110M) • Market & Cultural Landscape • Alternative solutions, cultural fit.
- 13. • (5 points) - We can beat competitor, out execute, out capitalize, and there is market and cultural fit for your product. • (3 points) - There is market and cultural fit, but beating competitor might be a challenge. • (0 points) - no market and cultural fit. Landscape (scoring)
- 14. Network Effects • Definition: “Effect that a single person using a good or a service has on the total perceived value of that product or service for others. The more who use the product or service, the higher it's value becomes to the group” • Is it a “Cross Border Network Effect?” Meaning, Does the network effects from one country, affect users to the other country? • Examples with services with cross border network effect (Instagram, AirBnB. • Example with little or no cross border effect (Food Delivery, content sites)
- 15. • (5 points) - Very strong cross border network effects. Every additional user or content will benefit the users from anywhere in the world. • (3 points) - Some or little cross border network effect. • (2 points) - no network effects. Network Effects (scoring)
- 16. Scoring! • Phase • Language / Culture • Talent • Landscape • Network Effects
- 17. Results • (25 Points) - Go! Go! Go! • (15 Points~) - And didn't score ‘0’ in any category then you should consider, but with caution. • (Below 15 Points) Don’t even consider.