In Market entry, Strategy

Overview of market entry services

Increased cross-border trade in goods and services is a fact of life. Companies around the world are looking at other geographic markets to understand if they can meaningfully penetrate them or simply create enough new revenue streams to return a profit for the effort and risk to be successful.

When companies look to foreign markets for growth, they often find that they are quickly overwhelmed by required analysis of all of the factors needed to make an informed decision.

Of particular importance for most businesses looking for market entry services are answers to these two questions:

1) what is the real addressable market size for my product portfolio or service mix; and
2) how risky will it be to operate in that country?

Nearly all other questions are a subset of these two primary issues.

Daedalus Advisory Services helps companies to answer these two questions using a combination of solid first-person research and intelligent secondary research using custom-built decision screens.

Our research team works with local researchers to bring both experiences gained from market entry assessments around the world with the deep local nuance that once in-country locals can provide.

Typically, we focus first on understanding the major market segments in the country (or verifying work done to date by the client) prior to performing the country’s risk assessment.

Unlike many market entry firms, we do not sell canned offerings that simply restate simple analysis frameworks for either the market or risk evaluations. Instead, our team builds custom tools (that are based on established precedents) and that reflect the client’s specific business.

Key questions for new market entry

The hierarchy of questions that most businesses face begins with an internal assessment unrelated to any geography: can my company expand internationally?

For many companies, an honest assessment of their capabilities would show that they should spend their spare resources on improving their internal capacity to act rather than stretching themselves thin across multiple geographies.

For those companies ready to expand internationally, the most important question to consider is this one: is there a real, viable, addressable market for the company’s product given existing competition?

If the real market size is too small or competition too intense, no further market study is necessary.

For the companies that are ready to expand and with geographies that are potentially penetrable, the key market entry question then becomes: if my company enters this market, what risks will I face and are any mitigation measures possible?

Through this very simple, structured approach, most companies will understand their core market entry risks.

Deeper the investigation of potential partners, site selection, and detailed product comparison with local alternatives (among other questions) may either confirm a market’s potential or cause a company to rethink its market entry plans.

Typical international market entry engagements

While no market entry engagement is exactly like any others, there are common issues that clients need assistance to solve. The most common are shown below.

Bespoke intelligence gathering: collecting information either before beginning an in-depth market entry effort or for targeted answers to questions at any point along the market entry process.

Market entry strategy: although most companies think of this step as being first, in many cases, it should be the result of your market entry planning and research. How do you know which strategy works best for you before you have identified the geography, evaluated the legal entry options, partnership potential, etc?

Marketing and Public Relations: market entry is greatly enhanced by smart and tightly scheduled articles, identified marketing partners and clever guerrilla marketing techniques to raise awareness of your brand and products.

Corporate Development: most companies will need third-party service providers for translation, legal and accounting services, financial partners and recruitment firms. We can either directly secure these resources for your or work with your team to identify and screen them.

International market entry lessons learned

While no market entry engagement is exactly like any others, there are common issues that clients need assistance to solve. The most common are shown below.

Bespoke intelligence gathering: collecting information either before beginning an in-depth market entry effort or for targeted answers to questions at any point along the market entry process.

Market entry strategy: although most companies think of this step as being first, in many cases, it should be the result of your market entry planning and research. How do you know which strategy works best for you before you have identified the geography, evaluated the legal entry options, partnership potential, etc?

Marketing and Public Relations: market entry is greatly enhanced by smart and tightly scheduled articles, identified marketing partners and clever guerrilla marketing techniques to raise awareness of your brand and products.

Corporate Development: most companies will need third-party service providers for translation, legal and accounting services, financial partners and recruitment firms. We can either directly secure these resources for your or work with your team to identify and screen them.

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