A staggering statistic by any stretch, and one that should encourage some deep, reflective thought. Thinking carefully about market entry is critical. Careful assessment of key elements is important. For example, consider:
1. Value Proposition & Capabilities – What does the organization do that is distinctive? Does the organization have the ability to execute in-market, particularly if the geographical location is new. For example, if your organization is looking to enter the Singaporean, Hong Kong or Taiwanese markets does it have the capabilities it needs to be successful? What Asian experience does the firm have? What in-market networks exist or do they need to be built from scratch?
2. Potential Market Size – How much demand is there?
3. Competition – Who will the organization be competing against?
4. Estimates of Market Share/Revenue – What are the sales projections?
5. Market Entry Framework – How much will entry cost?
6. Which distribution strategy is best?
Lack of market research, poor consumer insight, cognitive biases, weak branding, fragmentation, lack of scale, lack of expertise, the sunk cost effect and organizational politics can all be problematic when working through market entry protocols. It’s important for key decision makers to understand the risks, agree on strategy and be prepared to stay the course. Entering new markets is a big commitment,consumes organizational resources, and comes with substantial risk. Thinking through the key issues with clarity, planning carefully and executing strongly against well crafted strategy are the hallmarks of successful entrants.
Troika can help you design, develop and test market entry strategies. When you need help cracking open new markets, call Troika.