The strategy focuses on expanding operations into a foreign country, emphasizing thorough market research as a foundation. This involves identifying potential markets that align with the company's products or services and analyzing market demand and trends. For example, a technology firm might analyze customer behavior in emerging tech-friendly countries.
Developing a comprehensive entry strategy follows the research phase. This includes selecting an entry mode, such as joint ventures, and creating a localized marketing strategy. A consumer goods company might partner with local retailers to enhance market penetration.
Finally, building operational infrastructure is crucial. Establishing local offices and securing necessary licences ensures smooth operations. A manufacturing company, for example, might set up a plant to streamline supply chain logistics in the target market.
The strategies
⛳️ Strategy 1: Conduct thorough market research
- Identify potential markets that align with our product or service
- Analyse market demand, trends, and customer behaviour
- Evaluate the competitive landscape in the target country
- Study the economic and political stability of the target market
- Assess the legal and regulatory requirements for market entry
- Conduct a SWOT analysis specific to the new market
- Identify cultural differences that can impact business operations
- Gather insights from local experts or consultants
- Analyse distribution and supply chain logistics
- Estimate the potential return on investment and associated costs
⛳️ Strategy 2: Develop a comprehensive entry strategy
- Determine the most suitable entry mode (joint venture, partnership, wholly-owned subsidiary, etc.)
- Establish relationships with local business partners and allies
- Create a tailored marketing strategy for the new market
- Design an organisational structure that supports international expansion
- Develop a detailed business plan with clear objectives and timelines
- Set a budget for expansion and financial projections
- Plan for recruitment and training of local employees
- Implement risk management strategies for currency and market volatility
- Create a branding strategy that resonates with local consumers
- Determine pricing strategies that are competitive yet profitable
⛳️ Strategy 3: Build and nurture operational infrastructure
- Establish a local office or operations hub on the ground
- Secure necessary licences and regulatory approvals
- Build relationships with local suppliers and distributors
- Set up local banking and financial systems
- Implement robust IT and communication systems to connect international operations
- Create a logistics plan to optimise supply chain management
- Ensure compliance with local tax laws and financial reporting
- Establish effective communication channels between headquarters and the new market
- Monitor performance metrics and operational benchmarks in the new market
- Regularly evaluate and refine strategies based on market feedback
Bringing accountability to your strategy
It's one thing to have a plan, it's another to stick to it. We hope that the examples above will help you get started with your own strategy, but we also know that it's easy to get lost in the day-to-day effort.
That's why we built Tability: to help you track your progress, keep your team aligned, and make sure you're always moving in the right direction.
Give it a try and see how it can help you bring accountability to your strategy.
