A researcher at MIT has developed a test for small and midsized companies to determine if they should expand their business international.
The study by Donald R. Lessard, which was commissioned by DHL Express, found that firms should analyze value propositions using the “RAT Test” to see if they are “Relevant, Appropriable and Transferable.”
The full report, Should I Take My Business Global? – A Simple Test for Small and Medium Enterprises, is available here.
“A firm’s ability to exploit its capabilities in the international marketplace depends, in large part, on how it can systematically understand, standardize and replicate these capabilities and products in other locations,” DHL Express’ Ian Clough said in a statement. “Although businesses have a lot to consider, our vast experience working in local markets across 220 countries and territories tells us that there is much to benefit for small and medium-sized businesses in looking abroad for new sources of revenue.” – Jon Ross
MIT study gives small business expansion test
