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IR17

Steps to Perfect Your Market Entry Strategy

Businesses may look to enter new international markets for various reasons, ranging from added source of revenue, knowledge and technology sharing, and utilizing unused capacity to achieve economies of scale. Entering a new market may signal prosperity of business, but it’s not always an easy task. IR_BrochureCompanies should have a solid market entry strategy in place to succeed in foreign markets. Many questions arise when trying to enter a new market such as organizational capability, market dynamics, consumer segments, rules and regulations, and product compatibility.

Here are some ways to perfect the market entry strategy to explore new avenues:

Step 1: Market Selection

The first and foremost thing to devise a winning market entry strategy is to identify which market to enter. It may seem like a simple task but most companies fail after entering the new market as they are unable to understand all the market variables working against them. A general market research can give out generic information such as market size, growth rate, and competitor analysis but demographic, economic, business, and consumer-related environment also need to be considered for developing an effective market entry strategy.

Here are some criteria to judge the lucrativeness of the market:

  • Market Factors: It includes the economic and political stability of the market, market growth rate, and openness of the market
  • Demographic Factors: Population size and growth, GDP, age and income factors, and level of urbanization
  • Market Access: Infrastructure development, availability of partners, internet penetration, and market landscape
  • Business Environment: Ease of doing business index, availability of human resources, rules, regulations, and compliance

Step 2: Companies’ Readiness for Market Entry

The most important thing to analyze is whether the company is ready to enter into a new market or not. It depends on whether the company has the necessary resources to enter into the new market. The company should also assess their readiness around three core areas as given:

  • Internal Company Assessment: Brand Value, Merchandising, Supply Chain, Operations
  • Strategic Assessment: Reward Expectation, Desired entry timeline, Risk tolerance level
  • Resource Assessment: Availability of capital, human resource, expansion experience

Step 3: Mode of Entry

The new market presents itself with a host of new challenges, and it is important to select the right market entry strategy. The company has to choose between gaining control over the market and the level of risk.

Mode of New Market Entry

Step 4: Standardization Vs Adaptation

It is important for a company to decide whether to alter the product as per the requirement of the home market. Some companies standardize the product and alter only in the form of marketing communication with the core product remaining the same. Whereas on the other hand, companies like McDonald’s change their menu to suit the need of the target region.

Every organization needs to go through these steps before entering a new market. A detailed market entry strategy can contribute to the success of the product in the new market.

 To get more information on market entry strategy

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IR36

Market Analysis Study Helps a Flavors and Fragrances Client Analyze the Market Size

Globally, waste management remains a serious threat, especially among larger organizations. The methods involved in waste management can have adverse effects on the environment, climate, and human health. To effectively manage waste, it is vital to create a balance to promote recycling and protect consumers against harmful chemical substances. The robust methods included in waste management include: frequent check on the quality aspects related to recycling, energy recovery of waste, and waste prevention.

captureTo reduce costs associated with waste management, companies should improve their efficiency in processing and packaging goods more effectively and identify ways to sell and donate their waste as raw materials to other companies. This will help the company achieve cost savings and identify new profit streams. With years of expertise in carrying out extensive research, Infiniti’s market analysis experts offer strategic insights into the corporate waste streams product segment in terms of the segmentation, potential drivers, and regulatory challenges.

The Business Challenge

A global conglomerate producing flavors and fragrances was facing challenges understanding the existing landscape of the corporate waste streams product segment and identifying conversion companies. The client also wanted to develop a concrete and actionable business case, covering most eligible prospects in terms of partnership/M&A/ alliance and evaluate potential ROI.

Want to learn more about Infiniti’s research methodology?

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Our Research Methodology

To gain actionable insights into the market landscape, Infiniti’s industry experts carried out extensive research with primary respondents across food and beverage, flavor and fragrances, waste management, and allied industries across the globe. The industry experts also collated information from a comprehensive database including thought leaders, business executives, and regional level professional networks.

Our Solution Helped the Client

  • Analyze the demand trend in terms of the key trends and regulatory challenges in the market
  • Analyze the market size in terms of the current and forecasted growth
  • Identify the potential trends and regulatory challenges in the market
  • Estimate the cost associated with waste streams and analyze the ROI

Benefits of Our Integrated Approach

In a very short period of time, the client was able to identify up to 40 major waste conversion companies with capabilities to convert waste into useful ingredients. The engagement also helped the client gain a deep dive assessment of each company covering the business insights, business model assessment, and risk strategies.

A must-read market analysis case study for strategy experts and decision makers looking to assess the market landscape for waste stream products.

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Market Analysis of Certification, Testing, and Inspection Services for Industrial Hazloc Segment in the APAC Region

Business Challenge
A North American certification, testing, and inspection service provider wanted to understand the market for its hazardous location (hazloc) testing and inspection services in Australia, China, India, Japan, South Korea, and Taiwan.
Situation
The client wanted to understand the market landscape, study emerging trends and drivers, identify existing players and their core offerings, obtain an overview of the leading labs and customers, and understand the certification services likely to be required by target customers.
Approach
We conducted in-depth secondary research followed by 40+ primary interviews to assess the market landscape, major market players and their offerings, best practices, and current testing, inspection, and certification infrastructure for the Industrial Hazloc segment.
Impact
The client used our market analysis insights to identify and prioritize the market segments to focus on during each phase of its Asian market entry plan and align its business structure to counter threats from existing players.
IR3

Market and Price Intelligence Study on HVAC Equipment Market in Europe and North America

Business Challenge
A leading HVAC equipment manufacturer wanted to gain insights on the market landscape and market price levels of its major product offerings in 10 European and North American countries.
Situation
The client wanted to assess the landscape of the HVAC Equipment market in each country, understand the market potential, growth prospects, competitive landscape, and obtain insights on price points and price forecast based on demand and market trends.
Approach
We conducted a detailed market assessment including market size, market structure and identified key growth drivers. We also conducted in-depth interviews with key market stakeholders to derive insights on future price levels.
Impact
The client utilized our insights to quantify the market opportunities and align its strategies to use the growth drivers to its advantage. Also, it was able to adjust its price points to match industry standards and firm up future strategies based on forecast demand.
IR14

Study on the Healthcare Market Access in Middle East, Southeast Asia, and Africa

Business Challenge
A global healthcare consulting company specialized in the delivery of patient-focused market expansion strategies wanted to understand the potential for its market access service portfolio in the Middle East, Southeast Asia, and Africa.
Situation
The client required a comprehensive study focused on assessing the current and evolving healthcare infrastructure in its target markets. It also wanted to obtain insights on how access to healthcare is handled, including insurance, reimbursement, and access programs.
Approach
We adopted a two-phased approach for this study. The first phase consisted of an assessment of the target markets and evaluation of the key needs and concerns of clients/ customers through analyst-led in-depth interviews of shortlisted key stakeholders. The second phase involved the development of insights.
Impact
Based on our insights, the client was able to restructure its service offerings in the specified regions by aligning its strategies with the anticipated evolution of the market over the next 5–10 years, and customizing its services to address the emerging needs.
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Market Opportunity Assessment for Newborn Screening Instruments

Business Challenge
A leading medical and diagnostic devices company wanted to assess the potential for its mass spectrometry products in the newborn screening market.
Situation
The client wanted a comprehensive assessment of the dynamics – demand and supply, value chain strategies, end-user segment attractiveness, and competitive landscape in the newborn screening market.
Approach
We leveraged our existing database of key stakeholders and deployed our information source mapping team to identify additional contacts, who would be able to provide information specific to the client’s research needs and conducted in-depth interviews with the shortlisted key stakeholders, followed by insights development.
Impact
The client gained an understanding of the challenges faced by existing players vs. new entrants and also of the regulatory environment in the market. Using this information, it was able to develop the best market positioning strategy possible.
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