As companies plan for 2017 and beyond, one of the most important decisions they must make is whether to expand into new markets and, if so, which ones.
The right market expansion strategy can bring great success for years to come, while the wrong one can cause companies considerable problems or even jeopardize their continued existence.
With such high stakes involved, we wanted to talk to some experts to find out what you need to consider as you make any decisions about potential new markets, and which countries and regions of the world offer the greatest challenges and opportunities.
Moderator: Julio Mestas (@julio_mestas), is a Senior International Business Advisor at the University of Texas San Antonio’s International Trade Center.
Panelists:
Lynda Arsenault, CITP|FIBP (@LyndaEllenA) is now working as an international trade consultant after working for Nova Scotia Business Inc., Nova Scotia’s economic development agency, for the past 10 years.
Petra Benes (@PetraBenes) is an international trade consultant focusing on Latin American markets. She is the owner of Top Latin Export, and a partner at Alliance Experts. She is based in the Netherlands.
Richard Chowning (@TheAfricaMentor) is from Texas, and owns and runs Africa Mentor, a consulting company to help companies in African markets. He is also the author of an ebook entitled 3 Realities of Doing Business in Africa.
Dana Fox (@danafox) is the Director of Global Business Development at Athena Software in Waterloo, ON, and is managing teams expanding to markets in North America, Europe and Asia.
Siddha Param (@SiddhaParam) is an international business consultant and runs his own consulting company, StrandRidge.com, based out of Winnipeg, Manitoba.
What do you need to consider in the early stages of the market selection process?
A1.Before entering a new market, take a look at your business and how prepared are you for this next phase of your growth? #TradeElite
— Lynda Arsenault (@LyndaEllenA) October 13, 2016
A1 #TradeElite Know your competition and position your product or service as a disruptive innovation in the market.
— Your Africa Mentor (@TheAfricaMentor) October 13, 2016
How should new potential markets be researched? What are the best ways to analyze that research to make a decision?
A2 #tradeelite Trade commission services can help review your plans with in market staff on the ground. Build a plan and test early for less
— Dana Fox (@danafox) October 13, 2016
A2 #TradeElite Research demand for your offering. What strata of the population (education, earnings, geo location, age) are best target.
— Your Africa Mentor (@TheAfricaMentor) October 13, 2016
@julio_mestas A2 compare your share in home market to comparable competitors in target country #TradeElite
— Petra Benes (@PetraBenes) October 13, 2016
That’s key, finding the correct market entry can make the difference! #TradeElite https://t.co/Xm6faqyfJw
— Julio Mestas (@julio_mestas) October 13, 2016
What criteria are most important to determine a market that will work long-term, not just the next 1-2 years?
Support from #consultants who know the local #market improves #export success #TradeElite https://t.co/hQaSdDenrQ
— Siddha Param (@siddhaparam) October 13, 2016
A3 #TradeElite Geo market won’t determine long term success. Agile global development starts with corporate culture. Everything is changing.
— Dana Fox (@danafox) October 13, 2016
Q3 that depends on which sector you’re in. If consumers, then purchasing power and economic growth are a key factor #TradeElite
— Petra Benes (@PetraBenes) October 13, 2016
What are the major pros and cons to expanding to major developed countries?
A4 #TradeElite Choose your battles carefully. Focus on those markets you can win and deliver. Less competition is better. #startup
— Dana Fox (@danafox) October 13, 2016
A4 #TradeElite Developed countries have the money to pay for products (pro) but the competition is fierce (con).
— Your Africa Mentor (@TheAfricaMentor) October 13, 2016
Which major developed markets are you most excited or worried about as potential options?
A5. Canada’s GDP is predicted to rise to about 2 per cent in 2017. #TradeElite
— Lynda Arsenault (@LyndaEllenA) October 13, 2016
A5 #TradeElite In truth, I am not optimistic for first time entrants into developed countries. Way too much competition.
— Your Africa Mentor (@TheAfricaMentor) October 13, 2016
How should businesses include emerging markets in their strategy and decide which, if any, are best for them?
@PetraBenes Certain sectors of luxury goods in demand with #ASEAN #Asian middle class #consumers #TradeElite
— Siddha Param (@siddhaparam) October 13, 2016
A6 #TradeElite Look to the more stable countries in Africa: Nigeria, Ghana, Ivory Coast, Kenya, Uganda and Tanzania.
— Your Africa Mentor (@TheAfricaMentor) October 13, 2016
Any emerging markets we should pay closer attention to in the future?
A7 For #LatinAmerica I would say Argentina as of Q3 2017, Panama, Mexico, Chile, Colombia, Brazil bumpy ride ahead still #TradeElite
— Petra Benes (@PetraBenes) October 13, 2016
The middle class consumer #markets of #ASEAN countries #India & #China offer opportunities for those who do the research #TradeElite https://t.co/KZ76HXv50L
— Siddha Param (@siddhaparam) October 13, 2016
Any last thoughts?
Q8. Two words – Due Diligence ! #TradeElite
— Lynda Arsenault (@LyndaEllenA) October 13, 2016
A8 Market research should be your highest priority, not your lowest. Then decide strategy, make partner profile and stick to it. #TradeElite
— Petra Benes (@PetraBenes) October 13, 2016
Read the rest of the chat on market expansion strategy and follow future discussions by following the #TradeElite hashtag.
Stay tuned for the next #TradeElite chat, coming up Thursday, November 3 from 2:30-3:30PM ET.
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