Strategic Market Planning
Many mid-sized companies enter into foreign markets for their growth potential and a perceived “need to be there”, but need clear objectives, a business plan, and funding. A successful business plan must answer a few fundamental questions:
- What are your objectives for revenue, market share, and margins?
- How much are you willing to invest?
- When do you expect the international operation to be self-supporting or profitable?
It is essential that the strategic plan is in line with the long-term objectives and includes the appropriate funding to support the market entry strategy. Market entry strategies must be based on the goals of the company. There are no “right” or “wrong” strategies, but a series of trade-offs based on short and long-term objectives. More control, brand name recognition, and higher margins require more investment and a longer term commitment. Market entry strategies with lower investment reduce the potential for long-term market control and margins.