Market entry strategy
A well-developed market entry strategy is one of the most vital parts of entering a foreign market. There is a number of way to enter foreign markets, each determined by the specifics of each business and its products. Choosing a correct market entry strategy is essential, if a company wishes to minimize risks and establish itself abroad, as an incorrect choice will incur losses and withdrawal from the potential market. Naturally, Baltic Legal market entry services do their best to fully assess a business in all it aspects and develop the most cost-effective and profitable entry strategy for each of the represented markets.
Although each strategy is a unique combination of a company's needs and a foreign market's conditions, they can be roughly group in the following categories:
Other classification are also possible.
One should be cautious with aligning one's business with only one of these types, as they just are more or less established combinations of common market entry methods, not particular guidelines. It is especially true, considering that every market has different customers, economic traditions and needs. This is the reason why many companies rely on the help of specialists to develop a market entry strategy, rather than trying to do it themselves. Even more so, it is advantageous to delegate the job to the specialists from that particular market. Thus, for example, a company from Baltics is more knowledgeable about market entry in Latvia, Lithuania and Estonia than anyone else.
Market entry stages
Market entry is a multi-layered process, and a successful market entry strategy should take all of them into consideration.
First, there goes market research. Our team analyzes the business environment of a potential foreign market in order to detect possibilities, advantages and risks. It is supplemented with the business analysis, where the data about the company is being researched. These two processes combined, we gain a throughout understanding of what the company can expect in the market in question, and what would be the company's advantages in each particular case.
The market entry strategy development is then continued by the selection of location for the international expansion. The location can be narrowed down as far as it is needed, from region to a city district, depending on the circumstances. Sometimes it does not make much of a difference, if the company provides more or less widely-used services and/or products. If the business as a very specialised one, however, the correct choice of location becomes essential for the success of market entry.
The final stage of the market entry strategy development (but not the end of the market entry process!) is a market visit, which allows the representative of the business to visit the target market, establish contacts, scout the business environment and, with our help, to make changes to the initial market entry plan.