Introduction
The process of gaining entry into a new market is usually complicated and multi-layered. A clear understanding of the economic climate and other peculiar nuances are vital factors to be considered in accessing new markets. These factors include local culture, behavior, proven market strategies, and immigration requirements for investors this is in addition to foreign participation barriers. Market analysis, selection, and entry methods are essential for ease of impact in a foreign market. There is a need for intending investors to engage relevant professionals who provide Market Entry Advisory Services i to properly grow, expand or relocate their business to new markets. These services range from assisting firms in market research, formulating modalities of market entry through to the support in more efficient day-to-day operations on the new markets.
What >Does Market Entry Services include?
Market entry services may include some or all of the following:
Market Intelligence - perform in-depth market research and analysis to help guide market entry strategy and decision making. This involves analyzing reliable data on consumers and procedures, which strategies have the most success rate especially for new businesses in the market. The market intelligence however should not be restricted to new businesses only but also well-established market leaders. This will help new businesses in scaling and projecting their growth for the future. It also helps inform intending market players on the viability of the market and if entering the market is worth taking the risk.
Site Selection - This assists in selecting the most appropriate location for your international expansion project. Deciding where to locate a business has always been important and location plays a huge role in attracting and retaining the best employees, many of whom keep a close eye on where they a re based in order to optimize work-life balance. Good location decisions can significantly boost a company's long-term performance while poor decisions can cost the company millions in lost talent, productivity, and capital.
Company Formation - This involves establishing a legal entity; scanning the legal landscape and requirements needed to incorporate a company. It is important that investors are guided through the complicated process of expanding your business into new foreign markets and the possible risks and liabilities . It is recommended that experts and accredited agents are contracted to help with the procedure and to avoid penalties for non-compliance.
Business Development - is the process used to identify, nurture and acquire new clients, optimize business opportunities necessary for growth and profitability. A business development strategy is a document that describes the strategy through which the aim of the business will be accomplished . The scope of business development can be wide-ranging and varies a lot from organization to organization. It involves the identification of potential customers, creating new contacts, searching for distribution channels and partners, introduction to third-party service providers including freight forwarders, translation companies, law firms, accountants, and banks. It simply involves attracting prospects, building engagement, and turning opportunities into clients. It is quite different from marketing1.
Promotion marketing - is a form of marketing communication that seeks to inform customers about the company's activities, its current and future offers, shape a positive brand image, build positive relationships, and stimulate demand, in accordance with the individual business strategy. Promotions are used across all industries in different contexts - they can help achieve all key business objectives, such as acquiring new customers, preventing churn, and building customer loyalty. In short, promotion marketing helps to present your product, stimulate demand for it, and build an appropriate differentiation strategy2. It also involves providing ongoing marketing communications and public relations support to help strengthen your company's brand and positioning.
Country profiling and bench-marking - When operating or considering expansion across multiple countries or regions, you need to prioritise limited resources. There is a need to critically evaluate opportunities in competing markets with our global team of political, economic, regulatory and technical experts. It is essential not to ignore the nuances in every market especially as regards creating benchmarks for other regions. This is because, although there are key indicators and economic indices that cut across all markets, emphasis on certain indicators varies in different markets. The strategies that work in a country or a region may not work when it is just simply replicated in another country or region.
Competitor intelligence - Using our market-leading expertise in the collection and analysis of layered information we help you understand the strengths, weaknesses, plans, and intentions of competitors to maximize your advantage.
Due diligence - Due diligence usually deals with tangibles and easily-identifiable data points. When it comes to entering a new market, however, you need to look at a more fluid, dynamic picture. It also involves understanding what to look for, as well as providing intelligence, proper analysis of partners and critical stakeholders, how to interpret the data, and the mode of adapting your strategy to the market is critical to pursuing new business ventures. Before making your next move, you should seek out someone who can help you navigate the potential pitfalls. These includes forecasting possible risks, whenever possible, for the full duration of investments made by the investors. Due diligence has gone well beyond traditional standards through reviews of partners' compliance, risk management, and governance programmes, as part of the pre- or post-transaction process3.
Political and economic risk assessment -it is important to cover all aspects of the investment journey, including security and reputational risk. Our joint consultancy overlays geopolitical and economic scenarios to bring new insights and direction. Political tussles and jostling always have effects on markets and the ability of newcomers into that market, especially foreigners. In recent times we have noticed a more nationalist approach to governance in many countries. Where governments in power tend to make economic and market policies that favor indigenous market players and are more stringent on non-indigenous market players that are seeking to break into a new market. This is why investors have to seriously consider the political structure in place and the likelihood of changes in these structures especially as regards their attitude towards the market and the economy.
Conclusion
Small- and medium-sized enterprises (SMEs) which form a large portion of the enterprises in markets all over the world face challenges in internationalization due to their limited resources. Research on service firm internationalization as well as the antecedents and consequences are scarce. This is why market entry service is essential to bridge the gap and cover the lapses of these entities. If you are a company or investor seeking to enter a new market either in Nigeria or Africa at large, we are pleased to inform you that we are in a good position to meet your entry services needs as a firm.
Footnotes
1 Hinge Marketing , Business Development Strategies https://hingemarketing.com/blog/story/business-development-strategy-a-high-growth-approach
2 Voucherify, Marketing: Everything you need to know https://www.voucherify.io/blog/promotion-marketing-everything-you-need-to-know#:~:text=In%20short%2C%20marketing%20focuses%20on,is%20about%20awareness%20vs%20conversion.
3 Well Fleet Strategies, Market Entry diligence https://www.2wellfleet.com/practices/business-intelligence-due-diligence/market-entry-diligence/
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
