Five main steps to analyse the opportunities of our business in a new target country
1. Demographic Analysis and Dimensioning of our Market in the new Target Country
This preliminary analysis gives us a general overview about the numbers of our potential clients in the country and shows how we could reach them.
This first analysis can be distinguished between B2C and B2B approach depending on the business core that we follow. Thus, if we focus on a B2C business, a demographic analysis allows us to evaluate the numbers of inhabitants of a specific territory, its density, the workforce, and the incomes groups. If we focus on a B2B business, a demographic analysis shows us our potential clients their location and density according to our corresponding sector of interest.
After the demographic analysis, the dimensioning of our market is represented by the evaluation of the niche of our clients which we would like to reach. Thus, the dimensioning represents a second filter to identify our commercial strategy in the selected target country.
2. Analysis of the Needs of our Market
As soon as we identify the particular segments of our potential clients, we would need to discover and evaluate all their needs. This study will allow us then to understand the motivations behind the choices of our clients. The awareness of these needs and motivations will help us to diversify our proposal and to define new drivers for the demand of our clients.
3. Analysis of the Competitors present in our Target Country
The object is to assess all the competitors which are already working in the target country to define our added values. Thus, we would need to gather a lot of information to compare their activities analysing advantages and disadvantages they have in the market where we would like to develop a new business. This comparison should include all the main and relevant factors which are driving our sector - i.e. prices, quality, ancillary services, selling approaches, purchase/financing arrangements, etc.
4. Analysis of the barriers to start developing a new business in our Target Country
Before to start a new business abroad we should carefully evaluate all the barriers and obstacles we could face working there. This will allow us to avoid unpleasant surprises and problems unplanned being more effective towards our goals. So we should try to answer to these following questions: Why should we think that we will have success starting a new business in this target country? What would be the main obstacles we would face in this target country? Among the various potential obstacles we should consider: the value of our brand in the target country, the legal frame and any specific regulation related to our sector, taxes, custom duties, inflation, the culture and the mindset of the local people, access to the distribution channels, structural costs, transport, access to funds or loans and the banking system, etc.
5. Legal Frame of the Target Country
It would be relevant to know the legal frame of our target country because it can represent opportunities or difficulties for our new business. Indeed, in case the local regulations constitute an obstacle to our sector we should carefully evaluate the real chance we have to develop a new business in this country. Contrary, in case the local regulations constitute an opportunity for us we would be able to exploit them.