Evaluation of Market Entry Strategies

Evaluation of Market Entry Strategies services

Entering a new market is never easy. Besides, depending upon the market and environment, it is very much a possibility that a business that might flourish in a certain geography, might not work well in the other. Whereas, with the right guidance and direction, a business might flourish to its most disruptive levels.

To ensure that your market entry ideas on paperwork out in reality, when put to practice, it is important that the challenges are combated practically. It requires a thorough understanding of the focus market, consumer behavior, regulatory environment, and other key aspects. All of these are extremely critical for success. A strategic approach will help you to assess the potential of growth opportunities.

Market Entry Strategies:

When an organization decides to enter a new market, there are a variety of options viable to them. These options vary with cost, degree of control, and the risks involved. The simplest form of market entry strategy is through either a direct or an indirect method. This may include hiring consultants to help you through the process.

How we help evaluate different Market Entry Strategies:

1- Mergers & Acquisitions (M&A) and Joint Venture (JV) support services: M&A and JV are popular business strategies when choosing to expand your business into new markets. They help in filling critical gaps in service offerings and client lists and are an efficient way to acquire talent and intellectual property. It also provides an entrepreneur an opportunity to leverage synergies and save time through long learning curves.

We offer a plethora of support services in the formation of successful M&A / JV establishments. Following are the major services we do offer:

• Enhanced Due Diligence: Enhanced due diligence includes supporting clients with risk-based due diligence procedures.  It includes gathering information on the target & its key management personnel. It highlights significant red flags that can adversely impact the business and company’s reputation
• Financial Due Diligence:  The service includes assessing the key issues which are being faced by the business, focusing on Business Drivers behind maintainable profits and cash flows. Identifying the key financial risks having a potential impact on the transaction
• Operational Due Diligence: Operational due diligence is one of the most important components to keep in mind for the smooth processing of an enterprise. It includes reviewing the main operations of the target company. Confirming the business plan is achievable with the existing operational facilities of the company. However, considering the target company’s potential for additional value can be brought out by improving its operational function
• Business Valuation: Valuation is used by financial market participants to determine the price they are willing to pay or receive to affect a sale of a business. It needs an understanding of internal (Including financial & Non-Financial data) and external factors affecting the business
• Post-Merger Integration: Post-Merger Integration is the final and most critical step of the merger transaction as the success of the deal is dependent upon this step

2-Importer/Distributor Search: While planning to set up a business in a completely different geography; in other words, planning a market entry, it is important to chart out the importer/distributor for any product or service depending on the type of business.

We take the following approach to fulfill the various aspects of the importer/distributor search:

• Size, Operational requirement: Finalize a Partners / Importers / Distributors universe- size, operational requirements, and other key parameters with geographical preferences across identified regions
• Develop a long list: Develop a long list of potential Partners / Importers / Distributors based on thorough market research detailing all local market players with broad company profiles and Key Management Personnel backgrounds in identified regions that may be potentially interested in the deal process
• Concise the list comprehensively: Preparation of such list on agreed timelines with indicative evaluation criteria like the size of the company, financial strength, cultural fit, and strategic fit.
• Deliverable: Deliver the detailed possible Partners / Importers / Distributors List shall be made in the prescribed manner.

3-Legal Structure Creation: Having a well-grounded legal structure is primal for various types of business setups and marks one of the most important strategies before entering a market. We Support Clients in the establishment of a Legal setup/ structure, which majorly includes the following:

• • Wholly-owned Subsidiary
  • Liaison Office
  • Branch Office
  • Project Office
  • Manufacturing Setup

Why Choose Us?

Before a new market entry, it is extremely important to understand the various aspects of business and the risks that it carries. Once, an entrepreneur figures this out, the main goal is to choose the right kind of market entry strategy that fits perfectly to his/her needs. This involves a lot of thought, at first and a lot of financing and risk analysis later.

We at MBG can help & guide you through the entire process of the variety of market entry strategies and options available to you for your business. We offer a clear understanding of the various types of markets across various geographies and are proficient to understand your specific business requirements. We are an edge apart from any similar offerings in the market with our specialization in the above-mentioned market entry strategy services; and we ensure that your business is set up seamlessly & securely, without any hassles, and within an expected/stipulated frame of time.