Advancing into a new market requires detailed understanding of how does the overall market look like? The key factors being potential demand, opportunities, risks, competitors, socio-political environment, legal apparatus, traditional & cultural preferences & so on.
We have been successful in supporting many clients on launching into new operational areas both by geography, service, or product. We review the new market to understand if an investment is interesting and in what form a organization should enter a new market.
Entering a new market requires certain framework which must be followed in order to avoid post decision regrets. To start with, a macro analysis prove a wise move to quickly feel the market and the surrounding fundamentals. It answers questions like: –
- Is there any potential opportunity?
- Is the business environment appropriate?
- Will our investments be safe?
- How does the local value system look like?
- What are the legal safeguard options available?
- Do we have the requisite supporting systems in place?
- Is mother nature supporting?
It is wise to have a more holistic approach initially, determine trends and then setting strategies. From a strategic management’s perspective, PESTLE and SWOT are appropriate tools, that provide an outside knowledge of the market and its surrounding environment, which assist in clarifying doubts as to whether to move ahead with any in depth study or not.
PESTLE can be rightly called a thorough view on the external environment in which an organization is operating. On the contrary SWOT analysis view the internal environment of the company, based on its products etc. SWOT tends to be more product/service specific and PESTLE tends to be more region specific.