Geo expansion
Many companies expand their business internationally at a certain point. Generally this is done because companies want to grow or expand operations. With globalization, geo expansion efforts are only multiplying. Geo expansion strategies can take place in various forms, f.i. exporting products/services, licensing, partnering, FDI, setting up sales offices, or creating an integral local presence with own production facilities and local market knowledge. Pursued benefits of geo expansion can be new sales/revenue, diversification, cost reduction, investment and new talent opportunities.
Challenges in geo expansion
Entering new markets, however, can be very challenging. Misfits can occur with market needs, compliance with the regulatory and taxes framework must be met but often differs from the home market situation, supply chain complexities might occur, and so on. In order for a geo expansion strategy to be successful, a company needs to know which countries or regions to enter and why. Successful geo expansion strategies are based on data driven market research.
Support in geo expansion
Hammer’s market attractiveness study supports companies in assessing which country/region to enter and why. Executing a market attractiveness research is essential in identifying the indicators that determine overall market attractiveness. These indicators are grouped into two categories: (a) market size and growth; and (b) ability to compete. Indicators are identified and sharpened with the client’s team in the first phase of the project. Data collection and thorough analysis on the identified indicators for potential countries leads to a ranking of most attractive new markets. Analysis supports both selection of most attractive markets as appropriate market entry strategies.