Expanding a business into new markets is always a big decision and one that should not be taken lightly. Although the internet has made international consumers increasingly accessible on a global scale and a lot more manageable, a business still needs to determine when it is time to enter into a specific country and if it is worth it.
Your business may already sell to a specific country but have you optimised your campaigns and websites to the needs of the local consumers? How do your maximise profits with minimum resources?
At the end of the day, a business has to be profitable and has to know if it can acquire positive ROI in a specific market before putting resources into extensive advertising campaigns, whether these are off or online. One thing is certain – you must know the market in which you wish to conduct business.
This, of course, takes extensive market knowledge and insight into best practices of the various markets, which can be both time consuming and expensive.
So why would a business choose to enter small countries such as the Scandinavian nations and more specifically, Denmark – and how can it be worth it to invest in these small countries?
Well, here’s why!
Expanding into a new market can be an effective way to grow your business. But it takes a disciplined process to accurately assess the potential of each growth opportunity and the online potential in a given market.
Investing the appropriate level of resources in market analysis, attaining in-depth knowledge and local insight, creates a foundation for success in the chosen market.
5 steps to consider when entering new markets
1. Define the market
– Clearly define your market and understand the needs of your target customers.
2. Perform market analysis
– Expanding into new markets involves a great deal of market research and in-depth understanding of best practices, competitors, and potential barriers to entry.
3. Assess internal capabilities
– How much of your core competencies can you leverage?
4. Prioritise and select markets
– Markets should be prioritised based on their strategic fit and your ability to serve them.
5. Develop market entry options
– Once you’ve selected an attractive market, you’ll want to determine the appropriate level of organic growth and how best to allocate resources and what to outsource.
Denmark – an e-commerce heaven
As one of the leading users of e-commerce in Europe and a population with an increasingly disposable income, Denmark represents a wealth of opportunities for lead generation and internet marketing in every segment of the online market.
However, acquiring the market insight, as mentioned earlier, can be both costly and time consuming.
Which is why if you choose to outsource, thereby saving yourself time and money in becoming a country expert, you should target agencies with in-depth knowledge of the market you wish to enter. If they have in-depth knowledge of several markets, then there’s great potential to expand in future and operate on a global scale.