How Does Making or Increasing a U.S. Investment Fit With Your Global Growth Strategy?
10 Questions for inbound U.S. investors
Question 1 – How does making or increasing a U.S. investment fit with your global growth strategy?
Answering that question forms the basis for whether a U.S. investment is a priority for executing your strategy. Are you trying to get closer to customers and markets you already serve? Are you looking to expand your product portfolio or research and development base? Or, are you seeking U.S.-based brands, customer segments, technology, or knowledge and management talent?
Knowing what you hope to get out of the investment is only a starting point. You also need a plan for the lifespan of the commitment, all the way through realizing its full value. Try to think as far ahead as you can to realize as much upside potential and mitigate as many surprises as possible.
The ongoing strategy will likely be different depending upon whether you’re expanding an existing U.S. presence or starting a brand-new one, so it is important to consider subsequent opportunities that your investment may create.
Questions behind the questions
- If you weren’t investing in the United States as planned, what would you
prioritize instead – investing at home, in another overseas market, or not
at all? Why?
- As you consider entering or expanding in the United States, what are potential
pathways for growth? Why are some preferred over others? Will your first or
next investment become a platform for future deals and advantaged growth?
- Will your U.S. investments allow you to be more advantageously positioned
versus current competitors and other likely entrants, and allow you to capture
and serve customers in ways you cannot today?
Do it now
If you’re reading this, you’re probably far along in planning to make a U.S. investment. Perform this thought experiment: Write down – don’t just imagine – a plan for how you’d pursue your growth goals if the U.S. opportunity were to disappear. What’s different?
Technology and knowledge capabilities in the U.S. may present the chance for enhanced operating efficiency and productivity – gains that may be too attractive to pass up.
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