Friday, May 31, 2013
Looking Opportunities And strategy
Two men once visited the same forest and noticed that people in the forest and adjoining areas walked barefoot. One of them saw this as a potential market to sell footwear whereas the other man thought that there is absolutely no market to sell footwear as people are not aware of it and hence would not be so keen on buying shoes. Thus, it is all about your perception; it decides how successful you can be as an entrepreneur. Markets are created based on ones perceptions and others only jump into the bus once the market is created. But the early mover always has an advantage and the consumers in those markets would be more loyal towards those brands in the future. In this day and age the market share of the established companies is diminishing as new competitors are coming in. In order for the well established organizations to grow at a particular rate it is important to exploit new markets. Strategy analytics plays a key role here. These new markets are present in the developing countries and considering the potential of growth in these countries it makes it important for organizations to penetrate in these untapped markets before your competitors enter. But before entering them a proper analysis has to be carried out which involves looking at various parameters like growth in these markets, market potential of the product, close substitutes of the product, barriers to entry, etc. A proper market entry strategy has to be designed beforehand. Many specialized consulting companies are present to carry out this analysis. Some of them are boutique firms which specialize in a particular area of consulting. These consulting companies help to identify these markets, do strategy analytics of how to compete in these markets and even support in the design and execution of the strategies. Along with the market entry strategy an exit strategy also needs to be designed in case the things don't go according to your plans. Most of the companies are ready to invest in new markets provided an exit option is also there and their money is not stuck in the long run. Market entry strategy involves sales, strategy analytics, pricing, sourcing and manufacturing, service delivery model, ecosystem development, financial and investment models and complying with various government rules and regulations. So, lot of research needs to be carried out before an organization can enter a new market but with the help of these boutique firms who have lot of knowledge about the various emerging markets around the world, the analysis is simplified to a great extent.