Are you the leader of a company looking to enter new markets? Here are five important business capabilities to unlock any market entry challenge in an enduring way.
Be trust oriented. When there is trust there is collaboration, and latest research shows that when there is a positive emotional connection there is trust. The best way of achieving this in business is by developing and marketing strong brands at product and corporate level. Well managed brands capture trust, enable premium pricing, drive sales growth, allow room for making up for crisis and create opportunities for their companies to identify new business opportunities through partnerships. Create brands people will love, be proud to use, recommend, defend and want to help grow. Track brand performance by measuring brand contribution, a metric that quantifies the strength of a brand exclusively and indicates brand loyalty. Again, recent studies conclude that brands can account for more than one third of shareholder value. Branding is well worth the effort.
Facilitate people interaction in your business system. Yes, a key success factor is the customer focus of your business. “And” your customers are not the only human decision makers in your business system. It is critical for you to understand each external as well as internal decision maker whom you expect to give life to your brand. First, examine the assumptions of your internal decision makers about how and why your products and services should succeed in the new market. Then, research all your external decision makers including your customers but also key influencers such as industry opinion leaders, related nonprofit organizations and universities and local administrative bodies. Understand how they are currently making decisions and what kind of information they need to understand the value of your products and services. Understand what kind of value expectations they have to consider new products and services. This type of research does not require huge budgets. Targeted research that looks into how your products and services can help improve what your audiences want to achieve will serve the purpose. Evaluate all information in your new product development processes and identify communication gaps to share your brand effectively.
Understand and respond to local cultures. Let’s take the U.S. market as an example. The U.S. culture celebrates individual achievement and contribution. Your products and services need to be competitively positioned and branded to succeed in this market. The American society welcomes creativity, innovation and initiative. If your company has something unique to offer and your business leaders are ready to pursue initiatives that engage your offering in the daily experiences of people you are in luck. Furthermore, take pride in customer service as American consumers expect companies to solve product and service related problems as soon as possible and demonstrate immediate accountability. Never lose sight of the human aspect of market entry and remember that communication is the foundation of all human interaction. Keeping in mind that there can be regional or diversity related differences, communication is straight forward in the U.S.. Ensure all verbal and written business communication is clear, concise and organized. Also, information flows freely. There are plenty of opportunities to gather as well as communicate information. Therefore, developing a communications plan which includes interactive online presence and responsiveness are critical to your market entry success. Identify partnerships with other organizations and people who share the same vision with your firm, and prepare to improve conditions and lives together. A good social responsibility program is not a good idea anymore but should be an integral part of your brand development and launch process. Assuming leadership positions or volunteer roles in industry associations will also demonstrate your sincere interest in the American market and society.
Develop a global-minded organizational culture. Cultivate an organizational culture of curiosity and humility among your international business leaders as they find their ways to the hearts of new markets. Engage the thoughts and intuitions of your employees as your business encounters international business experiences. Offer relevant training opportunities to help them learn different ways of business conduct to become effective in their respective professional areas. And again, track organizational and relationship trust levels to facilitate adequate communication across all boundaries.
Aim high. There is no reason for not feeling confident in a market entry situation if you have done all your homework. Markets and people can sense a lack of confidence and consistence immediately. Identify your business system, facilitate all human interactions, nurture and reward effectiveness with a global business culture, beware of cultural differences, keep your new product development processes in the loop, develop your business and communications strategy, engage with the market through your brand, create your performance measurement systems and then, simply enjoy entering new markets with confidence and finesse.