Challenges of international market entry
Expansion into other markets is often an attractive option for quickly achieving higher sales reach and sales volumes. An international market entry offers many opportunities. However, experience shows that the road to new markets can be rocky.
No market is like the other
Every market has its own structures and rules, so that previous procedures and corporate processes cannot be adopted for a new market without being tested. In particular, areas far removed from the original sphere of activity and culture pose a challenge, but neighboring countries and even regions within a country can follow their own, very individual market principles.
Individual suitability
This can result in various fields of action for a company to meet specific market requirements. Consequently, not only should markets be selected with great care and examined for their potential, but companies should also examine their options for international market entry.
Preparation for market entry
- If an international market entry is intended, all possible target markets should be listed first.
- These are then examined with the help of market research and analyses. This creates transparency and an understanding of how certain market mechanisms work, which customers can be addressed locally, what the competitive landscape looks like, and which regulations must be observed. Current characteristics and future market developments should be taken into account.
- Once all relevant information has been gathered, each market must be evaluated for suitability according to established standards.
- Then, the various markets can be prioritized and optimal targets for entry can be set.
Starting points for international market entry
Prerequisites on the company side
Before developing a concrete strategy, the potential of the company should be examined so that challenges of market entry can be identified early on and stumbling blocks can be removed.
What changes are needed?
On the one hand, it must be clarified which changes, innovations or product adaptations are indispensable in order to develop the selected market. Only if it is possible to fulfill these conditions does market entry make sense.
What additional opportunities are available?
On the other hand, there may be characteristics of products or companies that additionally facilitate market entry or provide a competitive advantage locally.
Implementation planning
Once the decision to expand into certain countries has been made, the next step is to plan the entry in detail and define a roadmap.
In addition to the time frame, responsibilities are also defined here. Also, concrete steps and measures for successful international market entry are summarized. Depending on which option has been chosen, distribution partners, for example, must be identified and listed. A selection should then be made on the basis of defined criteria for potential and fit of the partner to the company.
Important points that should be considered during planning are also:
- The adaptation of existing condition systems
- The way of presentation
- The labeling of the products
- Solutions for a local service offering
Project examples for successful international market entry
In the past, Roll & Pastuch has already gained extensive project experience in the field of international market entry:
- Planning and implementation of a global market entry strategy/go-to-market strategy
- Selection of target markets
- Market research
- Determination of the price level
- Analysis of market and product characteristics
- Selection procedure for market entry
Enter international markets with your company
We will be happy to answer your questions and provide you with further information.
