Factors to Consider;
Many Companies successfully operate in a niche market without ever expanding in to new market.
- Some businesses achieve increased sales, brand awareness and business stability by entering a new market.
- Developing a market entry strategy involves a thorough analysis of potential competitors and possible customers.
- Some of the relevant factors that are important in deciding the viability of entry in to a particular market are subjected below.
Barriers Limiting a successful Market Entry
- Are there any legal barriers that need to be overcome in order to enter the market?
- For example, you need a license to enter a particular International market.
- What are the limitation to trade, such as high tariff levels and quotas?
- Do you have the required level of knowledge and training in Exporting Procedures?
- Will it be in demand for a long or short period of time?
- Is it easy to transparent or will it need special treatment?
- Is the product restricted abroad? (e.g. tariffs, quotas or non tariff barriers)
- Is the product modification required?
Self evaluation of Export intent
Look at
the product or services that you are intending to sell and consider the
following questions.
- How easy is it to maintain?
- Does it have a unique selling point (USD) or direct competitive advantage (DCA)?
- Is it fashionable?
- Does it have limited appeal? If yes would a new market be receptive?
- What is the life shell of the product?
This
questions will help you determine your strategy and plan to implementing them.
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