Market Entry & Expansion

When you grow (in a new market),
we help you focus.

reach new markets to increase sales & brand awareness

Market Entry, in simple terms, is not only an act of growth but also a strategy for a planned distribution and delivery of products and services to a new target market.

If you are a company that is looking to break into a market in a new country or a new domestic region, you have to create an effective market entry or expansion strategy so that you can attract all the right customers and partners.

There are some companies that can find success in a niche market and they don’t have to expand, but for most of them, they will need to reach new markets in order to increase sales and brand awareness.

it's a matter of knowing when to use these strategies

When thinking about market entry strategies, it is important to note the timing of release just as much as the actual method. Developed by Cristoph Lymbersky, these timings differ slightly but they can be the difference between failure and success when approaching a new market. The three methods are called The Wave Strategy, The Sprinkler Strategy, and The Waterfall Strategy.

The Wave Strategy dictates that you introduce a product all at once into countries or areas that have similar cultures and characteristics. For example, you might launch a product into Germany and Austria at the same time.

In the Sprinkler Strategy, the product is introduced into all of the suitable countries at the same time.

The Waterfall Strategy, by comparison, dictates that you launch a product only one country at a time, and you only move to the next country once sales are established in the previous market.

All of these timings can have success, it is just a matter of knowing when to use which.

So you’ve figured out the timing on how you want to deliver the product, but now you need to decide how you’re going to do that; the infographic on the left dictates some of the numerous ways to bring your product into a new market.

Licensing is the arrangement where a company transfers the rights to use a product or service to another company. This is a good strategy if the company you transfer the rights to has a good foothold on the market you are trying to enter.

Franchising is a process for rapid market expansion and works well if you have a repeatable business model that can be easily transferable into other markets. It would be best if you had strong brand recognition to use franchising efficiently.

Strategic Alliance or Partnering is almost a necessity when entering foreign markets, and in some parts of the world, it may be required. It is an advantageous strategy in those markets where the culture, both business and social, is substantively different than your own as local partners bring local market knowledge, contacts, and, if chosen wisely, customers.

to consider

Joint Ventures are a particular form of partnership that involves the creation of a third independently managed company. It is the 1+1=3 process. Two companies agree to work together in a particular market, either geographic or product and create a third company to undertake this. Risks and profits are normally shared equally.

Turnkey Projects are particular to companies that provide environmental consulting, architecture, construction, and engineering services.

So you’ve heard about all the different ways to enter the market and how to time it as well. All these strategies seem perfect, but that’s not the case, there will always be risks that will threaten your business, and some of these can pop up when you’re trying to enter a new market. Some of these will be out of your control, and some you will be able to stop if you keep a close watch.

Things you can’t control range from things like a natural disaster, sabotage/vandalism, or even unanticipated government intervention. COVID-19 is a great example of a “disaster” that impacted several market-entry projects simply because employees and consultants could not travel. 

Things you can control, however, range from things like poor management to simple human error. It would be best if you did everything in your power to make sure your business is running at full speed and no one is falling behind when approaching the new market.

Market Entry Risk Assessment

Market Entry can be

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