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Market Entry Strategy

In: Business and Management

Submitted By gnrajeshkumar1
Words 673
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MARKET ENTRY STRATEGY
The market entry strategy framework encompasses several services that are put together to help our customers to enter a new market. These services can be delivered separately depending on your needs and stage in the internationalisation process.

With our proven market entry strategy framework, we assess whether you should enter a market or not, why, and how.

The strategic framework comprises 4 phases that focus on specific issues of the market entry:
- Market assessment
- Business case development
- Implementation roadmap
- Go live
After each phase, based on the deliverables produced, the client will decide whether or not the entry in the new market must be pursued.

Each assignment begins with a “start up” aimed at developing a complete understanding of the client organization, products and processes, as well as a finalising and initiating the project.

Each element within the strategic framework will deliver strategic reports for the project sponsor and management board.
Market Entry Strategy Framework

This phase is the formalization of the information collected in phase I. This must be done in close collaboration with the client, since assumptions need to be validated to produce coherent figures in the financial analysis.

The following sections of the analysis are used to assess:
- The attractiveness of the market
- The difficulties to enter in the market and the capabilities the client has to overcome them
- The potential partners that could facilitate the entry
The business case then gives the financial figures related to the opportunity and allows to make a final decision regarding the use of a partner or not (comparison of sales achievement with or without a partner).

Market Attractiveness
The findings of phase I are matched against a set of criteria that determine the attractiveness of the market. These criteria depend on the situation of the client and are identified together with him.
Some of the attractiveness criteria are, for example:
- Market size
- Growth potential
- Expected profitability
- Meeting basic customer need
- Unmet customer needs

Ease of Entry
As for the market attractiveness, the findings of phase I are matched against a set of criteria.
The ease of entry step concentrates on the barriers that may impede a successful entry in the market.
Some of the ease of entry criteria are, for example:
- Regulatory requirements
- Regulatory support
- Investments needed
- Availability of qualified personnel
- Cost comparison with alternatives
- Present competition
- Potential competition
- Regional presence required
Partner Selection & Analysis
Finding partners may be needed to develop a business in a foreign country due to internal capabilities, financial constraint, time to market, business model, etc. As over 50% of alliances fail to reach stated objectives, the selection of the right partner becomes a critical step toward maximising value.

Following a thorough understanding of your strategy (objectives), your operations (business model, key processes, capabilities), and your culture (values, behaviours, organizational practices), we identify with you the selection criteria meeting your needs. Then we start our research to compile a list of possible candidates that we match with the selection criteria. Our assessment is done based on desk research, databases, and telephone interviews with experts, officials as well as with the candidates themselves. The short-listed candidates undergo a due diligence that covers usually the following topics: basic company information, experience in international business, management background, organization, corporate culture, reputation, and financial assessment. The result of this step is a short list of candidates, ready for discussion and negotiations.

Ability to execute
Using the criteria defined in the previous sections, we compare the capabilities to execute the entry strategy of the client Vs partner(s). The result is the identification of the areas of improvements for the company and where the client needs to train or get trained by a possible partner.

Economic Analysis / Business Case
The economic analysis section aims at determining the economic value of potential entry scenarios. These scenarios are identified jointly with the client before being assessed economically. To ensure the quality of the business case, the client has to provide and validate a part of the assumptions linked to his operations.

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