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The full meeting room in Amsterdam came to a standstill. The leadership team had just reviewed the quarterly results, which showed a worrying stagnation in domestic growth. The CEO looked around the table and expressed what everyone thought: “We need to expand internationally. But where do we start?”
This scene regularly takes place in European boardrooms. For companies that reach the ceiling of their home market, international expansion isn't just an opportunity — it's a necessity.
“International expansion is an absolute must for European companies because even the largest European markets, such as Germany, are small compared to the US,” explains Sander Mangel, Solutions Architect and Founder at Open Commerce. “At the same time, the complexity is unmistakable. Every country has its own language, culture, and buying habits, and consumers are more responsive to their own language, even if they speak English.”
The entrepreneurial dilemma: research versus risk taking
Mangel assumes the role of strategist in the conversation. According to him, European brands cannot stay local indefinitely. Even the largest markets, such as Germany, are relatively modest compared to the United States. He adds a simple, often ignored truth: each country has its own language, culture, and behavior — and people convert better when they're spoken to in their own language.
For a Dutch company, Belgium seems like a logical first step. But “logical” doesn't mean easy. What works next door may still require a complete cultural adjustment.
Dr. Alexandru Ionescu, e-commerce and marketing manager, makes a sharp distinction between how entrepreneurs and corporates approach market entry. “There is no standard recipe, and this is not an exact science,” he says. “What works for an entrepreneur in a certain market and strategic time window does not have to work again in another market or period.”
According to him, success starts with structure — followed by calibrated risk. “Entering a market purely on the basis of taking risks without clarity significantly increases the chance of failure.” But overanalysis can be just as harmful; agility is key.
A Strategic Framework for Expansion
To make structure concrete, Ionescu refers to the Ansoff Matrix — a product-market framework that was published in Harvard Business Review in 1965. It distinguishes four options:
- Market penetration: existing products in existing markets (lowest risk)
- Market development: existing products in new markets
- Product development: new products in existing markets
- Diversification: new products in new markets (highest risk)
Mangel applies this to smaller players: Market development is usually the logical route — take products that you know work and introduce them to a new country, instead of developing something new while getting to know a new market at the same time.
The corporate playbook versus the entrepreneur's reality
Ionescu is clear about corporate playbooks. Large companies fund extensive research processes — SWOT, PESTEL, customer interviews — and then carry out controlled pilots. “They do pilots,” he says. “So they don't immediately invest fully in a market, but test, test, test.”
For entrepreneurs with smaller budgets, he translates SWOT into practical terms: strengths and weaknesses are internal (budget, partners, brand value). Opportunities and threats are external and should be investigated, not assumed.
Many smaller companies skip this validation phase and then blame the external market for failures that stem from internal blind spots.
Practical research methods without a big budget
Ionescu's research approach is targeted and based on available data. He starts with Google Trends to validate consumer interest over time. In Romania, he analyzed searches for “Kendama” — a wooden agility toy that peaked seven years ago, then declined and recently rose sharply again. This repetitive pattern was a positive signal to further investigate.
He then uses Google Ads Keyword Planner to quantify search intent. By entering a competitor, you can see what people are actually looking for and how often. An analysis came up with a surprise: “Magnesium bisglicinate” had around 100,000 monthly searches — four to five times more than other supplements. A missed micromarket that was hidden in plain sight.
“Data alone isn't the answer,” he warns, “but it helps you decide where to place your next small bet.”
Localization: more than translation
Mangel's favorite example is simple but telling. A Dutch cargo bike brand entered the German market with strong marketing, good logistics and solid investments — and failed anyway. Campaign footage showed children riding without helmets. In the Netherlands, this stood for carefree and healthy; in Germany, it was seen as unsafe. One cultural assumption undermined the full launch.
“Localization is not a translation,” says Mangel. “It's empathy in progress.”
Ionescu refers to Hofstede's cultural dimensions — a model that measures differences between national values, such as power distance and uncertainty avoidance. “Successful international brands standardize their core values and localize the meaning,” he summarizes. “They deserve trust by market.”
That goes beyond marketing. Buying and shipping behavior also differs. “We had to ship Spanish tuna cans to Romania in boxes of 12 instead of 50 — because that's how people actually buy them.”
He also mentions Mitsubishi's Pajero, which was renamed Montero in Spanish-speaking countries because “Pajero” has an offensive meaning there.
Limiting risk through phased entry
Instead of launching fully immediately, Ionescu recommends a phased approach: “Start with low-risk models such as cross-border e-commerce or a local distributor. Once the market has been validated and shows traction, you can set up full local operations.”
This method works in several sectors. “Chinese car brands entering Romania first worked with existing distributors instead of opening their own showrooms.” At the same time, a major US smartphone manufacturer has around 30% market share in Romania with only a small local office — proof of the strength of phased entry.
According to Ionescu, market development effectively manages the inherent risks of expansion through phased entry and localization.
Brand building: traffic versus margin
Profitability determines endurance. Ionescu remembers his time at a German DIY chain where A-brand tools only provided a 5— 10% margin. The solution was to use these products as traffic drivers and then cross-sell accessories or private label products with a higher margin.
Private label is growing rapidly in e-commerce. In addition to margin, it builds up a valuable asset. “Developing a unique brand creates a saleable asset,” he emphasizes. “Private label isn't just margin optimization — it's value creation.”
Online, this scales via marketing automation and upsell logic: entry-level products broaden your reach, but the core profit comes from what you own.
The reality check
Even with frameworks, localization, and planning, expansion remains unpredictable. “By default, the odds are against you, even if you tick all the boxes,” Ionescu acknowledges. He sees two recurring pitfalls: mispricing and overreach. Incoherent pricing strategies undermine trust. And trying to “be everything to everyone”, he says, is one of the biggest mistakes. Mangel agrees: “You only get one chance to make a first impression.” For European companies with saturated home markets, expansion is no longer a choice — it is inevitable. The challenge is to do this with clarity, cultural sensitivity, and calculated risk.
As Sander Mangel concludes: “By default, the odds are against you. But with the right strategy and mindset, you can overcome them.” International growth isn't about happiness — it's about discipline. With structure, cultural realism, and phased validation, even small teams can cross borders without stumbling.
