Entering a new market is a challenging and risky venture, especially if you are working abroad. You need to have a clear and flexible market entry strategy that can help you achieve your goals and overcome the barriers. But how can you measure and adjust your market entry strategy to ensure its effectiveness and suitability? Here are some tips to help you.
Before you enter a new market, you need to have a clear vision of what you want to achieve and how you will measure your success. You should define your objectives and metrics in terms of market share, revenue, profitability, customer satisfaction, brand awareness, and social impact. You should also set realistic and specific targets and timelines for each metric, and align them with your overall business strategy and budget.
Cheaper Faster Feedback driven Remember these three when entering a new market. It is important to understand the market before deciding to scale. So when you enter a market, choose a mode which is cheaper, faster and has a feedback loop. It will help you understand how to position your product, who is the ideal customer and then will allow you to scale reasonably.
Measuring and adapting your market entry strategy is essential for success in a new market. It begins with comprehensive market research to understand its size, demographics, competition, and trends. Set clear, measurable objectives for your entry. Choose the appropriate entry mode, whether exporting, licensing, joint ventures, or subsidiaries, based on cost and risk considerations.
check the rate at which revenue growth will reach the break-even so that profitability start timeline can be freezed and worked upon
To measure and adjust your market entry strategy, you need to have a deep understanding of the market you are entering, including its size, growth, trends, opportunities, threats, competition, customers, and regulations. You should conduct market research and analysis using both primary and secondary sources, such as surveys, interviews, focus groups, reports, databases, and online tools. You should also use frameworks such as PESTEL, SWOT, Porter's Five Forces, and Value Chain to assess the external and internal factors that affect your market entry.
One of the most important decisions you need to make is how to enter the new market, whether through exporting, licensing, franchising, joint venture, acquisition, or greenfield investment. Each entry mode has its own advantages and disadvantages, depending on your objectives, resources, risks, and control. You should also consider whether you need a local partner to help you access the market, such as a distributor, agent, supplier, or alliance. You should evaluate your potential partners based on their reputation, experience, network, and compatibility.
Something practical I did when starting out is working for someone big in the game. The advantages of this are: 1. You get involved in the game, even if its just from the bench... You have a frontline ticket into how things are done technically and bureaucratically. 2. You get to play everyday without taking the risk. Risks are what prevent individuals from entering the market. You have no network, little capital, and less confidence than competitors who have established reputations in the game. Working for someone big allows you to gain all three and more. 3. Your boss torments you... yeah, and that's the best way of mentoring you in a way that pushes you to do better or makes you realise you are entering the wrong door.
Before you launch your product or service in the new market, you need to test and validate its fit and appeal to the local customers. You should conduct market testing and validation using methods such as prototypes, pilots, beta versions, and minimum viable products (MVPs). You should also collect feedback from your target customers, partners, and stakeholders, and use it to improve your product or service features, design, quality, price, and delivery.
Once you enter the new market, you need to monitor and evaluate your performance regularly and systematically. You should use the metrics and targets you defined earlier to measure your progress and results. You should also use tools such as dashboards, reports, and analytics to track and visualize your data. You should compare your performance with your expectations, benchmarks, and competitors, and identify your strengths, weaknesses, opportunities, and threats.
Based on your performance evaluation, you should adjust and optimize your market entry strategy to adapt to the changing market conditions and customer needs. You should review and revise your objectives, metrics, entry mode, partner, product or service, and marketing mix. You should also implement changes and improvements based on your feedback and learning. You should also communicate and collaborate with your team, partner, and customers, and seek their input and support for your strategy adjustment and optimization.