Tag: market entry

Market entry strategies

Infiniti’s Market Entry Strategies Facilitate Profitable Growth for a Healthcare Company

Market Entry Strategies for a Healthcare Company

With continually changing healthcare market environment and policies, healthcare companies are facing challenges in establishing their market presence in a new market. Also, recent studies show that more than half of the healthcare companies have failed while trying to enter a new market. With this, it is becoming imperative for healthcare companies to formulate efficient market entry strategies to make their expansion smoother. To achieve this, companies are partnering with firms like Infiniti Research to leverage their expertise in formulating market entry strategies. Infiniti’s market entry strategies have helped various global giants to successfully establish their market presence in new geographies and achieve maximum market share.

Are you planning to expand your business operations to a new geography? If yes, you must be interested to know whether your products or services will fit in the new market. Request a FREE proposal and learn the benefits of leveraging our market entry strategies.

Business Challenge

The client is a healthcare company based out of Central United Kingdom. As the UK healthcare market was highly saturated, the client decided to expand their business operations across Germany and Belgium. Before entering the new market, the client wanted to analyze the opportunities and challenges in these regions. Also, they wanted to understand the size of the market and growth potentials, identify the right business partners to support their operations, and select the right entry mode to enter the new market. Furthermore, with Infiniti’s market entry strategies, they wanted to evaluate the market entry barriers and take appropriate measures to establish a foothold in the new market.

Solutions Offered

To help the client formulate a market entry strategy, the experts at Infiniti Research followed a three-phased approach. The experts conducted a thorough assessment of the market landscape to understand the market size and opportunities in Ireland and Germany. The experts also analyzed factors such as what’s driving growth in the market, competitors’ market share, and the regulatory environment.

Infiniti’s market entry strategies helped the client to estimate the market potential. Also, the experts helped the client to identify the right business partners to support their operations in the new region. Furthermore, Infiniti’s market entry strategies helped the client to understand the market entry modes opted by other major players in the healthcare industry. With this, the client was able to identify suitable pathways for entering the new market. Consequently, the client successfully established their foothold in the new market. Also, within one year of entering the new market, the client was able to exceed their revenue expectation and achieve millions of dollars in savings.

CONTACT US to know how our experts can help you understand the new market landscape and devise efficient market entry strategies.

Steps to Creating Winning Market Entry Strategies

How to do market segmentation analysis (1)

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Market entry barriers

Market Entry Barriers to the Chinese Pharma Industry

Although expansion into emerging markets is vital for pharma companies to ensure continued growth, both cultural and economic market entry barriers can pose problems. China is one of the most lucrative markets for pharma companies across the globe. China’s growing middle class and an ageing population mean new opportunities for companies to widen their portfolio in this area. However, entrants into the Chinese market encounter several challenges while expanding their operations effectively in the country. For Western companies seeking a foothold in the pharma industry in China, our experts have identified some of the key market entry barriers in the Chinese pharma market and ways to overcome them.

Want to break free from market entry barriers and establish yourself in a new market? Request a free proposal to know how our solutions can help your business.

Chinese market entry barriers

market entry barriersIdentifying untapped market potential

The scale of the country could prove to be one of the key market entry barriers for pharma companies planning to enter the Chinese market. So far, the main focus for pharma companies has been on Tier 1 and Tier 2 cities, those with a population of over 2 million. Physicians in large hospitals in these cities have been targeted by foreign companies as a part of their market entry strategy to venture into these markets. Pharma companies must also identify ways to leverage the potential of China’s rapidly growing Tier 3 and Tier 4 cities. Mergers or joint ventures with established Chinese firms who have built up knowledge and a profile in these areas is one of the best ways to pursue this.

Overlapping demographics

China’s overlapping demographics with each of them requiring a tailored approach poses a severe challenge for pharma companies. Furthermore, inadequate knowledge of geographical and cultural differences in Chinese markets could also prove to be significant market entry barriers for companies in the pharma sector. Even two cities such as Shenzhen and Guangzhou which are in close proximity, speak different languages and represent very different social clusters. Marketing in these two cities or even the case of Tier 1 and Tier 4 cities in the country would necessarily require two separate approaches.

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Planned price restrictions

The Chinese government has recently indicated that they intend to review their current drug pricing scheme, which could increase the market entry barriers for foreign companies. They are planning to dramatically increase the number of drugs covered under the essential drugs list. China’s pharma industry is heavily weighted towards producing generics which are better placed to compete under such criteria, posing major market entry barriers for foreign companies wishing to profit from more expensive branded drugs. Foreign pharma companies can increase their profit margins by targeting consumers directly.

Supply chain

Once the drugs have made its way through the registration process, it will need to be distributed, and the fragmentation of the supply chain makes this a much more complicated process in China. Often, there are several layers of distributors to get through before reaching the customer in Chinese markets, which raises the distribution costs and also diminishes supply chain visibility, making it difficult to monitor the product once it has left the factory, contributing to further market entry barriers.

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IR23

Beating the Odds in Market Entry with Competent Market Entry Strategies

New and emerging markets open up numerous opportunities and have limitless potential for growth. However, when to take a closer look at the annals of business history, it shows that for every successful market entry, about four fail. Interestingly, it is not just inexperienced startups that face the heat from new markets while implementing their market entry strategies, several sophisticated corporations also face the same fate. Industrial strategists at Infiniti Research agree that successful market entry strategies depend largely on factors including timing, scale relative to the competition, and the ability to leverage complementary assets. Moreover, it is vital to undertake detailed analysis and market research before entering into a foreign market.

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School and office accessories on wooden background

Four Barriers You Need to Overcome Before Planning Your International Market Entry Strategies

The rising rate of globalization is prompting brands across the world to ‘think global’. In the long term, every modern business wants to expand their reach to international markets, which would eventually spike their profit and growth graphs. The lucrative scope of doing business in foreign markets are attracting many ventures, big and small, to explore these opportunities. However, while formulating international market entry strategies, chances are that a company might overlook certain barriers that might prove to be fatal for the business. Here are some of the key barriers that companies must watch out for before formulating their international market entry strategies:Contact US

Monopoly in the market

The existence of a monopoly in the market often poses as a tough barrier for companies planning to build international market entry strategies for their business. A monopolistic market situation is when one company or a group of companies hold an entire chunk of the market share, making them the primary providers of products/ services in that market. Monopolies often block the entry of other substitutes or competition in the market by using patents and licenses, controlling distribution routes, resources or suppliers, or by using pricing strategies. If companies entering a new market cannot access an efficient or cost-effective distribution system because incumbent companies have a greater control over the distribution networks, the chances of their goods or services to be successful is highly unlikely.