With this post I’m introducing two new formats to this blog. I anticipate that both will not only provide a more robust flow of information but also stimulate conversations. The first change is visible right above this paragraph, video. I’ve included links to interesting video posts and conference media footage before and will continue to do so. What makes the above different is that I’m now going to develop videos as both topical series and relevant “here & now” conversations.
Let me know what you think. What subjects are of interest?
How To Craft a Winning Market Entry Strategy – Introduction
Hi there, and welcome to the next video for DonaldMcMichael.com. Inside this video, How To Craft a Winning Market Entry Strategy, I’d like to talk about an important process that is often clouded by misconceptions; strategically expanding your business footprint. Of all the revenue enhancement models this is the easiest to spot; it’s highly visible but full of complex nuances that can’t be ignored.
Whether you’re expanding into a new country or diving into a new demographic you’re entering a new culture, one that you have never operated in before. It pays to take the time to not only understand the environment, but also the new pressures that will be placed on operations and on you, the manger, as you work to establish a creditable beachhead.
So what are the basic market entry strategies? The best way to think about this is to evaluate the revenue modes. Which are:
- Strategic Alliances (commonly referred to as partnership development channels)Over the next few videos I’ll give you a rundown on what’s involved with each.
The best way for me to put everything into perspective is to think about it as a picture.
As you can see the various market entry options form a continuum. The level of involvement, risk, and financial reward increases as a company moves from market entry strategies such as licensing to joint ventures, and ultimately, various forms of investment. When an existing entity seeks to enter a developing market, there is an additional strategy issue to address: Whether to replicate the strategy that has served them well without significant adaptation. To the extent that the objective of entering the market is to achieve penetration, one is are well advised to consider embracing a broad-market mind-set. I don’t like to refer to it as mass-market for many niche players have proven that they can succeed with a niche-plus strategy. A niche plus strategy targets the core while making adaptation moves to attract an audience from the neighboring niches.
So, which strategy should you pursue?
Well it depends on:
- Your vision
- Attitude toward risk
- The available investment capital
- And, how much control of your brand you need… to feel comfortableThe core of my decision making process is always a solid feasibility study that takes into consideration all of these variables – as well as the typical financial analysis.
Thank you for watching this introductory video and I look forward to seeing you in Part 1.
In the next video we’ll dive into the pros and cons of Licensing.