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Ten tips for a successful growth markets strategy

 17-Mar-18

A version of this article first appeared in The Orient magazine, issue 42 

Slow growth in developed markets, and increasing levels of government support for exports and overseas venturing, US, UK and European companies are actively looking to growth opportunities in China, Southeast Asia, Latin America, the Middle East and other emerging markets. 

Here are our top ten tips for a successful growth markets strategy:

  1. Don’t delay! As more and more international companies get in on the growth markets opportunity, you need to act now to explore opportunities and identify the best-fit markets and strategy for your company - but don't rush in unprepared.

  2. Expect to adjust your business model and your pricing to suit local conditions.Controlling Ebola through mHealth strategies (c) IBM Research

  3. Do your research. The available addressable market for foreign companies entering international growth spots is often much smaller than the total market, and it is essential to define that segment, understand your potential customers and competitors, and target them thoughtfully.

  4. Consider teaming up with a local partner, but do your due diligence before signing any contracts, and don't be afraid to 'go it alone' if that really looks to be the best course of action.

  5. Put together a specific decision-making team and process for growth market entry to ensure there is sufficient focus on the opportunity, as well as the potential risks.Case f0324 online business directory commercial due diligence southeast asia

  6. Use local talent and transfer your best practices, training and standards to your team in the new market.

  7. Remember to consider and address supply chain and procurement issues in advance. Materials, transport and logistics costs can destroy your margin in growth markets, where your prices will almost inevitably be lower than in your home market.

  8. Develop government relations in the target country. In some sectors and countries, this can be a make-or-break factor, and in any location it can only help, not hinder.

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  9. Be selective about which markets to enter. Don't just follow the herd - use market intelligence to identify specifically the best opportunities for your company.

  10. Be prepared to commit resources to growth markets. The payoff may not be immediate, but the long-term prospects are very promising if the strategy is right.

 

 

GGM can help with international strategic advisory, market research and M&A/partnering - in Asia, Latam, Middle East, Africa and other growth markets. Take a look at our Services or Contact us to find out more.

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