New market entry whether domestic or international can be somewhat challenging but very profitable if done the correct way. New market entry can be a geographical phenomenon when a company enters a new geographical market, such as a new city, state, or even a new country. Or, it can be a material phenomenon when a company enters a new market by the introduction of a new product and/or service. Each type of new market entry requires extensive research and strategies for the venture to succeed. A certain level of regional customization might have to be implemented for the product/service to succeed within the new market.
How can one accomplish a new market entry?
New market entry may be accomplished in a number of ways, through exporting, offshoring, licensing, franchising, mergers and acquisitions, joint venture(s), strategic alliances, Foreign Direct Investment (FDI), piggybacking or partnership(s). Each of these strategies has its own challenges, but can be very rewarding if done correctly and in a manner that complements the companies existing structure.
Are New Market Entry Opportunities abound?
How can you enter a new market when you do not what opportunities are abound? To solve this major problem for our clients, HafeziCapital has developed a proprietary process for New Market Entry. Based on the current clientele bases, sales patterns and many other metrics, we analyze similar patterns in other geographies and develop a Top Five Market Entry recommendation list. Based on this data and client’s input we move to a more robust analytical process with detailed demographic studies, market entry strategies, legal limitations, and competitor analysis. With this step-by-step approach we help small and medium sized business understand the new market and become comfortable with the various challenges that such a market entry will posses. Furthermore, we develop a market entry model to ensure we correctly estimate the financial and human capital needs for such market entry.
One of the key elements with small and medium businesses is their lack of resources and awareness of foreign markets. How can you enter a new market when you do not what opportunities are abound? Click here to read more about this issue on our solutions page.