The Importance of Situational Awareness in International Expansion
I had planned to write a deep dive on Vibe Marketing this month, but just like scaling a startup, sometimes life throws something more urgent in front of you. Maybe you’ll get two columns from me this month! As I sit here in my safe, serene home in New Zealand, watching two Kererū eat the leaves of a Kowhi tree, I can’t stop thinking about the vast shifts, both economically and politically, that have happened in the US over the past few months. The landscape has completely and drastically changed, and strategies and tactics must adapt accordingly.
Among these changes, the U.S. recently announced a sweeping set of new tariffs that will have ripple effects across multiple industries and regions. For companies with international ambitions, especially those eyeing expansion into the U.S., this is a prime example of why situational awareness is no longer optional. It’s essential.
What Is Situational Awareness?
In the business context, situational awareness is about having a deep understanding of the environment you’re entering. It’s not just about knowing the market stats and financials (though that’s important); it’s about understanding the nuances. What’s really happening in the regions you’re targeting? How are local businesses operating? What do customers expect? And, what external forces (like economic volatility, political shits, or new regulatory policy such as tariffs) might impact your plans, and what regional customs you need to understand and prepare for?
It’s easy to get cozy with spreadsheets, market reports, and strategy decks from the safety of your NZ HQ, but that’s not enough. The U.S. market is vast, and more importantly, it’s highly diverse. When we talk about “entering the U.S. market,” we’re really talking about entering many mini-markets, each with its own regional cultures, preferences, and even business etiquettes. If you’re planning to crack the U.S. market, you need to understand these subtleties—not just in theory, but in practice. And, IMHO, you either need to get on a plane - a lot - or have a portion of your team relocate.
The U.S. Is Not One Market. It’s Many
We say this a lot, but it bears repeating: The U.S. does not operate as one homogenous market. It’s a collection of regional markets that can differ dramatically from each other. The Southeast, for instance, is a world apart from the Northeast in terms of business culture, customer expectations, and even pricing strategies. What works in New York or Boston may fall flat in Atlanta or Miami.
I’ve seen companies make the mistake of treating the U.S. like a single monolithic market, only to realize too late that they missed key regional insights. Take California and Texas, both enormous, both full of opportunity, yet they couldn’t be more different in terms of customer behavior, regulations, and even how you build relationships with key stakeholders.
If you’re serious about scaling into the U.S., you need to know these distinctions, and the only way to do that is through heightened situational awareness.
Getting Out of the Bubble
When you’re thousands of miles away, working from a different time zone, it’s easy to lose touch with what’s really happening on the ground. I’ve found that too many companies focus solely on the data including market penetration reports, TAM (Total Addressable Market), or financial projections and forget the human, on-the-ground aspects of market entry.
Yes, the numbers are important, but they don’t tell you how locals do business, how they buy, or how they react to external factors like political shifts, climate issues, or even regional preferences. For example, expanding into the U.S. Southeast during hurricane season? You might want to think about how natural disasters could disrupt your supply chain, sales cycles, or marketing efforts.
Understanding this on a real, practical level requires more than desk research. It means actively engaging with local players, talking to customers, boots-on-the-ground visits, and leaning into local expertise.
Situational Awareness Isn’t Just About Risk. It’s About Opportunity
Situational awareness doesn’t just protect you from risk. It also helps you seize opportunities that others might miss. If you can tune into what’s happening on the ground, you’re more likely to spot gaps in the market, regional trends, and shifts in consumer behavior that might otherwise go unnoticed.
How to Develop Situational Awareness
So how do you build this critical situational awareness when you’re not in the market 24/7? Here are a few strategies:
Get Local Expertise: You can’t rely solely on your in-house team or the same data sources everyone else is using. Invest in local experts who know the market inside and out. This might mean hiring regionally or partnering with local consultants who can give you on-the-ground insights.
Talk to Customers: One of the simplest and most effective ways to understand a market is to talk to the people in it. Customer interviews, focus groups, and direct feedback will give you a clearer picture of what people actually need and expect.
Make On-Site Visits: There’s no substitute for being there. Yes, we live in a digital age where Zoom meetings and Slack channels are the norm, but if you’re serious about understanding a new market, you need to be physically present. Meet with partners, potential customers, and even competitors in their local environments to get a feel for what’s really going on.
Stay Informed About External Factors: This means staying on top of everything from local politics to climate issues. The more informed you are, the better you can anticipate disruptions and take advantage of emerging trends.
Foster an Adaptable Culture: Markets change, sometimes rapidly. A critical component of situational awareness is being able to pivot quickly when things on the ground shift. Make sure your team has the agility to react to unexpected developments, whether that’s a sudden market opportunity or a disruption like a natural disaster.
Bottom Line: You Can’t Scale Without Knowing the Terrain
In global expansion, knowing the landscape — both metaphorically and literally — is everything. Whether it’s navigating the regional nuances of the U.S. market or responding to new disruptions like the recently announced tariffs, situational awareness is the foundation upon which successful international growth is built.
As you look to scale your business across borders, remember: It’s not just about having the right strategy. It’s about truly understanding the terrain you’re stepping into. Because you can’t win in a market you don’t fully understand.
