Market Entry Strategy – the best challenge?
‘I want your help developing a market entry strategy’. Call me sad (thank you!!) but those words are music to my ears. Why? Well, I love helping to take a product or service that has no profile into an often mature market. This, and starting to win market share, is the best challenge I can be offered!
Markets fascinate me. How were they created? Who first saw the opportunity and awoke the buyers to a new possibility? What were the initial, key characteristics of the market? Are they still the same, or has the market matured?
Because, understanding these factors, and more, is stage one of developing a market entry strategy.
Don’t be confused by my use of the word ‘market’. A market may be geographic, and we’ve helped businesses come into the UK and go into overseas territories. But your target market might be ‘working women aged 25 – 40’ or ‘hi-tech engineering companies’.
Stage two is deciding our business strategy . Maybe we are going to try and enter the market as cost leader? Maybe we will be a highly differentiated supplier with a unique value for money proposition.
Because there is no right or wrong answer, current market forces will influence our choice. So, cost leadership maybe an option. Can our supply chain and distribution structure offer economies of scale that current suppliers can’t achieve?
Maybe we have a unique component to our product or service. Or maybe we take it to market in ways that our competitors can’t match AND which add real value to the end user. Because this combination can win business at a premium price!
We build market entry strategy for overseas territories. In addition, we build a market entry strategies for foreign companies to enter the UK. In each case, the dynamics of manufacture (if applicable) and distribution are major considerations.
Many people will have heard the term “think global – act local”. This is the mantra for any organisation, large or small, that wants to get established in an overseas territory or in the UK.
We’ve had some fun in the past with organisations headquartered in the USA & in Commonwealth countries. Most of all, they struggle to believe that their culture differs so much from our own! And they soon understand that how they promote domestically, just won’t cut the mustard in the UK.
More of that another time, maybe!