5 Things to Consider Before Entering a New Market

Entering a new market can be daunting. It comes with its storms, and only the strong at heart can paddle through. One of the most common growth strategies is to expand to new markets. Nonetheless, expanding the right way is necessary and not making the wrong decisions. You must critically analyze new markets before making efforts to get in.

You must ask questions like how easy or difficult it could be to get in, the risk factors and what the possible outcomes could be. There are several things you need to consider before you decide to enter a new market. In this article, I will outline some of these factors to consider.

Growth of the market

One of the first things you must consider before launching a new product or service is the growth pace of that market. Is it fast or slow? What are the possibilities for growth within the market? Are there opportunities for rapid growth? You also need to know the supporting infrastructure for the new market and if it exists.

Timing of entry

Depending on the market you’re entering, there might be first movers already. That is business people that have already started operating in that space. This means that you will be a later entrant when you come in. It is important that you note the timing of your entry. 

As a first mover, you must be certain you have your acts together. Have a concrete entry strategy so you don’t get displaced when later entrants gain access. As a later entrant/mover, what strategies will you have to compete favourably with existing brands?

Target customer base

What’s the point of releasing a product or service that no one will use or appreciate? None. To successfully enter a market, you should have waiting customers. This is where research comes in. Before you even conceive of entering a particular market, engage in extensive research to determine if there is a need in that market, and then you design your product or service to meet those needs.

Entry strategy

It is obvious that you need to have an entry strategy, or you will be caught off-guard. Determine your channels of distribution.

Decide if you will go traditional or digital. How will you reach your customers? What story will you tell behind your brand? How will they resonate with your brand? These must be considered at this stage.

Competition

This should come at every point of your entry process. Keep an eye on your competition. Know what they are doing, the markets they are entering, the traction they are gaining, and the reasonable improvements they are making.

Knowing these will better position you for success. If prospective competitors in your proposed market are excelling, find out the secret as much as possible. And if they aren’t, also find out why. It will help you look before leaping blindly into the market and incurring losses.