Selecting Your Market
Factors that will Impact your Choice of Markets
There are a number of factors that will determine your choice of markets including:
- Types of government
- Trade agreements in place
- Degree of competition
- Market size
- Cost of developing the market
- Product adaptation requirements and many more.
These will largely be determined through solid market research and the gathering of useful market intelligence. There are however some key questions you need to ask as you are gathering this research and intelligence.
First and foremost you need to determine what your key success factors are. That is what you are hoping to achieve by entering this particular market. Is it increased revenue, market share, experience, widening your brand or other goals?
Second, you need to determine who your key competitors will be. These need to be narrowed down. You will not be competing against everyone in that market just those of the same relative size, price points, and distribution channels.
Once you have these questions answered, the third point you need to determine is how you will enter and succeed in the market. Determining an appropriate market entry strategy is important but other factors come into play to that you will need to take into account. These include:
- What are the key cultural differences that will impact your business?
- What will it cost you both in market development and market sustainability?
- Who will be your best customers?
- Are there relationships or strategic partnerships or permissions you will need to develop with government and industry officials?
- Do you have the right staff that can function in international markets?
- Do have access to or can you find good local legal and financial advice?
It is also useful to think of some of the administrative details that you will be confronted with. This is when having a good local partner, agent, distributor or shipping agent will help immensely. You will need to know if:
- You have all the proper forms and documents for company registration have you completed all the mandatory studies for market entry
- You have got the right government approvals
- You have set up foreign exchange process to repatriate proceeds