Tag: Market Entry Strategies

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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Market Entry Strategies

Why do Market Entry Strategies Need to be Prioritized in 2019? A Round-Up of Popular Articles on Market Entry Strategies

LONDON: Infiniti Research, a leading market intelligence solutions provider, has announced the release of their FREE downloadable resources’ series on the benefits of market entry strategies. These supplements provide comprehensive insights into how market entry strategies help organizations avoid pitfalls and identify suitable pathways for navigating a new or foreign market.

Most business owners aspire to expand their business by entering into new markets. While entry to a new market may seem to be a great business strategy, most businesses fail while making a new market entry. Have you ever wondered why? The truth is, market entry strategies are extremely challenging.

Entry into an unfamiliar market can expose an organization to unexpected risks. This could further hamper the company’s growth and damage their global reputation. Hence, while planning to enter a new market, you need to take into consideration the demographics, location, and needs of the new market. It becomes imperative for organizations to leverage market entry strategies. Infiniti’s market entry strategies have helped various firms build robust route-to-market strategies.

In this competitive world, conventional experience and understanding can no longer guide future strategies. Request for a FREE brochure to learn more about our market entry strategies.

Find out how some of our clients have successfully secured a space in the new market with our market entry strategy engagement.

Weekly Round-up: A Storyboard on the Benefits of Market Entry Strategies

 

#1: 4 common market entry mistakes and how to avoid them: Global business growth can be both daunting and rewarding.  Even some of the most established companies tend to fail in their ventures to operate in an international market. The lack of industry knowledge and inefficiency in the market research efforts undertaken by the company could be some of the reasons behind the failure of businesses. In this FREE downloadable resource, our market entry strategies experts discuss the key pitfalls that hinder the growth of companies in a foreign market with some examples of lessons learnt from famous international market entry failures.

Download our FREE supplement to learn more about the most common mistakes every business makes while entering into a new market and find out how  your company can avoid them.

60% of companies fail to succeed in new markets. Is your business preparing to enter a new market? Request a FREE proposal to know how our market entry strategies can help you achieve your business goals.

#2: Potential barriers to foreign market entry: Entering a foreign market could be a highly challenging task if you have not formulated effective strategies to overcome the potential barriers. Obtaining desired business goals requires support from people that understand the local market and can deliver results within a specific period and at an affordable cost. Hence, companies are partnering with market research companies like Infiniti Research. Our experts have identified the potential barriers to market entry and strategies to overcome them. Download our latest FREE supplement to learn more.

Consider these challenges before devising international market entry strategies:

Top 3 Challenges Companies Must Watch Out for Before Devising International Market Entry Strategies

#3: Five steps to build a winning market entry strategy: In today’s competitive world, conventional experience and understanding can no longer help businesses succeed. It is vital for any business to leverage market entry strategies and be precise about what they want to achieve in new markets, learn more about the market they are entering into, have a detailed competitive analysis, choose the right market entry strategies mode, and identify financial requirements to begin their new venture. This FREE supplement from Infiniti Research explains the five critical steps that organizations must follow to build a winning market entry strategy.

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Boosting Profit Margins by 17% for a Financial Services Provider – A Market Opportunity Analysis by Infiniti Research

Realizing Savings of 13% for a Financial Services Provider 

Business Challenge 

The financial services industry is facing unprecedented changes, due to the digitalization trend. Rising customer expectations, increasing competition from financial technology companies, regulatory pressures, and data security challenges are affecting companies in the financial services industry. As these challenges continue to escalate, companies in the financial services industry need to constantly evaluate and improve their operations, to keep up with the fast pace of change in the industry.

A leading financial services provider, who was looking to expand their business to international markets such as South America and Europe, approached Infiniti Research to leverage our expertise in gauging the profit potential of untapped market opportunities. With Infiniti’s market opportunity analysis solution, the client wanted to better understand the current market, identify other niches within the market, and plan a marketing strategy to expand their business or enter a new market.

Infiniti’s market opportunity analysis solutions have helped companies evaluate potential barriers to market entry, analyze distribution channels, and assess markets’ willingness for new offerings.

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Top Challenges Faced by Financial Service Providers 

Problem Statement 1: Increasing popularity of FinTech Companies

The increasing popularity of FinTech companies was disrupting the way traditional companies in the financial services industry operated. This created huge challenges for the client as they were not able to adjust quickly to the market changes, not just in terms of technology, but also in terms of operations, culture, and other facets of the industry.

Problem Statement 2: Regulatory Pressure

With regulatory requirements continuing to increase, financial service providers were forced to spend a large part of their discretionary budget on being compliant, and on building systems and processes to keep up with the escalating requirements. With the help of market opportunity analysis, the client wanted to better understand the business environment before expanding their operations.

Problem Statement 3: Sales Projection

By leveraging Infiniti’s expertise in offering market opportunity analysis solutions, the client wanted to analyze market size and industry outlook for the next 10 years. Also, they wanted to forecast their average sales, annually.

Request for a FREE proposal to know how leveraging market opportunity analysis can support your organization in strategically entering a new market or expanding in an existing market.

Solutions Delivered and Value Offered 

To help the client tackle challenges in the industry, the experts at Infiniti Research recommended a market opportunity analysis solution.

Phase 1: Competitive analysis

Based on our insights, the client gained detailed insights on market demographics and competitive scenario. This helped them to adapt quickly to the market changes and enhance service offerings.

Phase 2: Porter’s five forces analysis

The experts at Infiniti Research conducted porter’s five forces analysis. This helped the client to understand factors affecting profitability and identify areas of strength, to avoid costly mistakes.

Phase 3: Analyzing sales projection

With the help of market opportunity analysis, the experts at Infiniti Research helped the client forecast their average sales rate for the next 10 years. This phase of market opportunity analysis solution further helped them estimate the compound annual growth rate (CAGR) annually.

Our market researchers equipped the company with qualitative and quantitative market opportunity insights to help spur sales, take better decisions, and identify new market opportunities. Also, with the aid of our market opportunity analysis solution, the client was able to develop an accurate business plan, which increased the company’s profit margin by 17% in a year.

Request for more info to know more about our market opportunity analysis solutions.

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Weekly Round-up: A Storyboard on the Benefits of Market Entry Strategies

LONDON: Infiniti, a leading market intelligence solution provider, has announced the release of their new storyboard on market entry strategies and on how it has supported organizations in strategically entering a new market or expanding in an existing market.

With the thriving businesses all over, expanding the business or entering a new market has become a must to afloat in the business. But, you must be wondering why many companies fail to succeed overseas or while trying to expand their business? Even, despite Aussies’ deep love for coffee, Starbucks, incredibly popular in the US failed to crack the Australian market. Why is it that so? The truth is, market entries are challenging! This compels companies to leverage market entry strategies to avoid pitfalls and distinguish suitable pathways for navigating a new or foreign market.

Infiniti’s market entry strategies help companies assess the opportunities and risks of a new market and ensure a smooth entry. Given our experience in formulating go-to-market strategies for global organizations, we’ve collated some of our recent success stories on market entry strategies and have also highlighted ways in which our market entry strategies solutions have helped businesses become market leaders in new geographies.

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Uncover the secret formula to develop a successful market entry strategy!

#1: 4 secrets to creating a winning market entry strategy: Entering into a foreign market, particularly one with strict rules and regulations can be a very daunting task. Often, business owners have the ambition to go international, but they’re just not quite sure where to start! Are you facing the same challenge? If yes, figure out how to beat the odds in the international market entry with competent market entry strategies.

Beating the Odds in Market Entry with Competent Market Entry Strategies

#2: Market entry strategies facilitate profitable growth in medical devices company: With the recent technological advancements in the market, the businesses are facing difficulties to propel their business forward. Hence, companies are looking to formulate a go-to-market strategy to scale their business prospects across emerging markets. A medical devices manufacturer was going through the same hurdles with the recent advancements in the field of medical technologies. Our market entry strategies helped the company avoid cognitive biases that undermined the market entry decisions and helped expand their reach by entering key target markets.

Medical Devices Market Entry Assessment: Avoiding Cognitive Biases that Undermine Market Entry Decisions

#3: Top challenges you’ll need to overcome to succeed in international business: Foreign trade requires you to operate outside your comfort zone, but that’s where the magic truly happens in terms of flourishing, shining and realizing your business goals. Before you dive into a foreign market, you need to do some market entry research and learn about its economy, trends, consumers, policies and trade agreements to help yourself plan better. In this blog, our experts have listed out the top challenges and suggested a few measures to combat them.

Top 3 Challenges Companies Must Watch Out for Before Devising International Market Entry Strategies

#4: Identifying new growth opportunities in the market: If you’re not actively seeking out new customers or channels to grow, you’ll almost certainly miss new opportunities right in front of you. A fast-food company also went through the same dilemma. This not only affected their profit margin but provided scope for other players in the industry to expand. Hence, the client was looking to expand their business to capture a higher market share in the new segment in a more cost-efficient manner. Our market entry strategies helped them smoothly expand their business and subsequently increased sales, business stability, and brand recognition.

Market Entry Strategy: Identifying New Opportunities in the Market for a Fast Food Restaurant Client

#5: Helping develop low-cost market entry strategies to boost presence in international markets: Planning market entry strategies can be daunting. Market entry strategies necessitates a deep understanding of the market dynamics, including barriers to entry, customers, trade environment, and so on. Without these insights, navigating the business environment can be extremely challenging and can set the business up for failure. Facing a similar challenge, a leading automaker was in search of a trusted market research firm that could conduct a comprehensive market entry research study. Partnering with Infiniti Research helped the client devise an effective, low-cost market entry strategies to boost their international presence.

Business Market Entry Strategy for an Automotive Industry Player

Mastering market entry challenges are easier than you think with Infiniti’s customized market entry strategies solutions. Want to know how? Request for a FREE Proposal to leverage our market entry strategies solution.

 

#6: Personal care products manufacturer secured a space in the Russian market: This success story explains how a personal care products manufacturer was able to secure a space in the Russian market and identify the untapped opportunities based on the market entry strategies research conducted by Infiniti Research.

Market Entry Strategy Framework for a Personal Care Products Manufacturer Helps Break into the Russian Market

#7: Elevating sales and productivity for a chemical firm: In a mere span of eight weeks, Infiniti’s market entry experts were able to offer insights on the implications of entering new market segments in the chemical industry space. This market entry strategies engagement helped the client understand the factors hampering the growth of the market and make informed business decisions to enhance sales and production.

Leveraging Effective Market Assessment Solutions to Devise Market Entry Strategies for a Chemical Industry Client

#8: Driving higher sales per product for an orthodontic appliance manufacturer: While trying to expand your business, understanding if you are on the right path along the way, is just as important! Our market entry strategies solutions have made it possible for one of the leading orthodontic appliances manufacturers in assessing the sales potential of their newly introduced product. With our market entry strategies, the client was in a better position to market their products and drastically reduce time to market to drive higher sales per product.

Infiniti’s Market Entry Strategy Helps a Leading Orthodontic Appliances Manufacturer to Enter International Markets

#9: 5 step process for devising an effective market entry strategy: Developing and implementing the correct market-entry strategies can often make the difference between success and failure. As majority of organizations lack the necessary resources and skills required to accurately analyze and assess the growth potential and market landscape, our experts have proffered the five steps in devising successful market entry strategies.

Devise Successful Market Entry Strategies in Five Steps 

#10: How an IT solutions provider maximized ROI with Infiniti’s market entry strategies: The global IT services sector is highly fragmented due to the presence of several players. This is inciting IT solutions providers to leverage market entry strategies engagement to incorporate innovative technologies into their businesses endlessly. If businesses are not up-to-date with the latest technologies, it is highly likely that their operations will become outdated, putting their survival in the market at stake. Hence, by leveraging Infiniti’s market entry srategies, an IT firm determined long-term corporate plans and formulated strategies to maximize the ROI.

Market Entry Strategy Engagement: How an IT Solutions Provider Maximized ROI

CONTACT US to know more about our market entry strategies solutions.

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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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Market Entry Strategies: Boost Your Presence in the Foreign Markets

Expanding a business into foreign markets is usually a worthy endeavor and can open up huge growth possibilities, but it does bring new challenges too, such as unfamiliar customer behavior, unacquainted market response to products or services, universal payment methods, cultural differences, and tariffs and export fees.

Without understanding customer behavior, it becomes very difficult for businesses to offer a customer-centric and personalized experience to their customers.  Therefore, for businesses to succeed in the global market, it is crucial to have winning market entry strategies in place to review macro and microeconomic environments and assess a market’s readiness for new offerings. Additionally, companies need to do a proper market analysis to identify the potential risks that they can face in the foreign markets.

At Infiniti Research, we understand the impact that international market entry strategies can have on your business. And to help companies excel in the target market, our team of experts has provided a detailed guide to market entry strategies to help businesses break into foreign markets.   (more…)

Market Intelligence

Top 4 Emerging Markets of 2018 and Their Characteristics

Emerging markets, aka developing countries or emerging economies, are nations who are investing extensively in boosting their production capacity. Such nations have moved away from their traditional economy, which relied solely on the export of raw materials and agriculture. Emerging economies aim to offer a better quality of life to their people and focus mostly on rapid industrialization to drive growth.  Some of the characteristics of emerging markets include their lower-than-average per capita income and high volatility. Additionally, Get More Inforapid growth and more than average returns for investors are some of the other characteristics of emerging markets.

With the growing popularity of developing countries among investors, there has been a boom in the number of published articles that shed light on the characteristics of emerging markets. This makes it tedious for stakeholders to find relevant information. However, to make life easier for investors, we at Infiniti Research, have highlighted the top four emerging markets of 2018 that are all set to become the new superpowers in the years to come. (more…)