Going International represents one of the best alternatives to satisfy growth aspirations of many companies.
Many of these companies embark directly into action. They attend business fairs, they connect with potential distributors, they contact potential customers, they also achieve sales.
After an initial positive momentum, very often, companies realise that things are not going exactly as they had expected. At times their products or services do not satisfy local expectations or regulations; in other occasions the legal requirements are not met; sometime competitors are too well positioned; in some occasions the level of aftermarket service required is higher than what the company has organised to offer; at times consumers have evolved faster demanding different features; etc...
Finding certain things out too late results in at least three issues: the emergence of sunk costs, loss of time to market and loss of potential income!
For the above and for many other reasons it is always better to carry out a local Market Competitive Analyis that covers the relevant issues that may be critical when the decision to enter a new market has been taken. In most cases the Market Competitive Analysis will quantify the size of the market, analyse customer behaviour, qualify competition, study local regulations and requirements, understand local distribution and a few more aspects that depend mostly on the target market and the sector.
Often companies consider the answers to the above questions obvious and therefore they end up not paying the sufficient attention to them, and then, when it is too late, these points turn into mandatory in-depth points of analysis.
Carrying out an in-depth Market Competitive Analysis may be an expensive and time consuming task.
We always recommend our customers to invest in a Market Competitive Analysis before initiating any action in a specific market. The deeper the analysis the more prepared will the company be. However, in most circumstances it is possible to taylor the analysis to a reduced budget that will result in a sufficient, yet not comprehensive, level of information gathered.
Forthalia regularly carries out Market Competitive Analyses in most countries and sectors.