Thursday, February 11, 2010

International Market Entry Strategy Planning

International marketing strategy planning is one of the most over looked parts of a successful export strategy.  It is absolutely critical to the success of any international expansion but is only as strong as the effort put into it as well as the talent of the individuals creating it.

The first and most critical step is commitment.  By that I mean is your company committed to an export strategy rather than trying to get a quick hit to unload extra product or help during a downturn?  Many companies will not make money in the first year or two of a new market entry and they need to be prepared for it, ready to ride out the bumps as part of a longer term strategy.  With commitment comes the next most important stage which is planning.

Developing an international marketing plan starts with the basics.  What is your company selling?  Who is buying it in your current market and how does it compare to your current in country competitors?  This is often skipped but I believe it is a critical first step.  If you don't know what you do better, cheaper or faster than your competitors in your current environment why, would you think you could do it in another, that you know even less about?  I also think if you're currently working in a small market and if you're not one of the leaders there with your product / service you're probably not ready for a larger market like the United States - which is often the goal of many aspiring exporters.

Now that we understand what we do well in our current environment, its time to look at the chosen market a company thinks they can export into.  My next blog will revolve around the next step, what a market entry analysis should include and how to go about developing one.

1 comment:

  1. Hi David,

    I agree with the above information and its very informative and helpful. Also, I would like to add that there are several phases in Market entry process of an international enterprise like Strategizing Phase, Business Set-up Phase, Business Development Phase and Growth Phase. PSD Global has a wide portfolio of services to cater to individual activities of each of these Phases.