Article · 10 May 2019 · 2 min read · Katarzyna Kucia

Business internationalisation advisory service

Entering a new market carries considerable risk. Many aspects of the new market have to be considered well in advance. The entry process can take so long that favourable economic conditions or public sentiment may change dramatically. How can you learn about possible obstacles and prepare for them? The answer is an in-depth market analysis.

How do you prepare a company for a safe entry into a new market?

One way to ensure a smooth market entry is an in-depth market analysis covering growth drivers, formal barriers, the business environment and future competitors.

There are several ways to ensure a smooth market entry with no surprises. One of them is an in-depth market analysis. This means more than statistics that tell us, for example, the size of the potential customer group and how much money they have to spend. It means a full analysis of, among other things, the factors that drive market growth and the barriers that may slow it down, such as formal barriers and the waiting time for the required permits or certificates. It also means analysing the business environment, such as suppliers. And you cannot skip an analysis of the future competitors you will face.

How do you analyse competitors in a new market?

Besides a list of the largest players and their products, you also need information about the sales and marketing strategies of your future competitors.

It may seem that a list of the largest players and their products or services is enough for a competitor analysis. However, this is not enough to know who you will be competing with for a slice of the market and who actually holds the largest share of it. The task is not simple, because you also need information about the sales and marketing strategies of your future competitors. Why? Because it may turn out that they do not use certain sales methods, treat them as marginal or overlook certain customer groups. If that is the case, you need to know why, and whether for some reason you should adopt a similar strategy. This matters especially if your goal in entering the new market is not to start a revolution.

What does a well-executed market entry give a company?

A well-executed entry into a new market can bring higher sales, higher revenue and greater recognition in the industry, although preparing the analysis and strategy can take several months.

It may turn out, however, that a well-executed entry into a new market will be a revolution for the company. It can bring higher sales, higher revenue and greater recognition in the industry, which will drive further growth. The task is not easy: analysing the market and preparing an effective strategy can take several months. A market analysis carried out on your own may also be incomplete. That is why it pays to work with a company that already has many such analyses behind it, has its own team that knows the market, and has contacts with people who operate in the market and can help you adapt to its needs or fill a gap in it.