Strategy 5-Step Primer to Entering New Markets Expanding into a new market can be an effective way to grow your business.
While an export plan tends to focus on just a few products or services, your market entry strategy will provide you with a roadmap for your whole business. A typical market entry strategy can take six to 18 months to implement. Here are six steps you can follow to build a winning market entry strategy and start exporting into previously unknown territory.
Set clear goals Be specific about what you want to achieve in your new market, including the level of sales you can expect to reach. Research your market Use every means at your disposal to get to know your new market including: Explore all of the rules that could affect your product and how you produce and deliver it.
Learn about different distribution channels, too. Study the competition A detailed competitive analysis based on your research and visits to the target market will help you make key decisions—for example, if you need to modify your product or service to customize it for that market.
Most businesses underestimate the degree of competition existing in new markets. Getting expert advice can help clarify the challenges. Choose your mode of entry There are many ways to enter a new market. You can use the services of a distributor or agent located there. You might become a franchisee or acquire an existing business.
You can even construct an entirely new brick-and-mortar facility. A lot of companies start by going into the U. If you choose that path, make sure your strategy includes a unique value proposition for the distributor. Figure out your financing needs Find out if you'll need to get any financing to support your export venture.
You may also want to get insurance that protects your company against losses when a customer cannot pay. EDC offers credit insurance that can help you avoid cash flow issues when an international customer fails to pay. Have your accountant, lawyer and an external specialist review your strategy.The Cambridge Strategy Group takes advantage of the small business owners' need for marketing and management skills, the scarcity of those skills in the market, and the lack of any major competitor owning the concept of "small business consulting.".
Market entry strategy is a planned distribution and delivery method of goods or services to a new target regardbouddhiste.com the import and export of services, it refers to the creation, establishment, and management of contracts in a foreign country.
On the plus side this entry strategy will immediately provide you the status of being a local company and you will receive the benefits of local market knowledge, an established customer base and be treated by the local government as a local firm.
Articles published in strategy+business do not necessarily represent the views of the member firms of the PwC network. Reviews and mentions of publications, products, or services do not constitute endorsement or recommendation for purchase. As always, companies should consider their own resources, previous export or business experience abroad, and long-term business strategy before entering the China market.
Representation in China by a Chinese agent, distributors, or partners who can provide essential local knowledge and contacts will be critical for success.
Find effective market entry strategy business plan overview including barriers to market entry, marketing, distribution, tools, pricing & advertising.