When a company is exploring export potential and has selected a market, it needs a market entry strategy. Ultimately, an exporter must take responsibility for its market entry strategy, but the export Consultancy firm (SCA-Partners) needs to be able to offer expert advice. An export Consultancy firm (SCA-Partners) needs to understand the various market entry strategies a company could adopt and inform exporter clients about the benefits and pitfalls of different approaches. It is wise to think beyond the immediate issue of market entry. A company should be encouraged to think long term and develop ideas about its long-term market strategy. In the early stages, companies are eager to get started. But a bad strategy, such as being irrevocably locked into an arrangement with an unsatisfactory agent or distributor, can mean the business has no future. An exporter client should consider the following questions about entering a market for the first time:

1. What are the long-term objectives for this market?
2. How will the business be expanded in this market?
3. Should market territories be allocated to agents or distributors and should they be given exclusive rights or restrict them subject to performance?
4. How will the company protect its intellectual property?
5. What marketing support will be given to agents and distributors or any other partner?
6. Can the organizational arrangements be changed as the market grows?
7. How will the company be paid?
8. How will disputes be settled? (Mediation is suggested.)
9. What servicing arrangements are needed?
10. Who is going to provide the services?
11. What staff does the company need to commit to the process?
12. What milestones will be set for agents and distributors and for the company?
13. What will be regarded as success?
14. When do they expect positive cash flows?
15. Is there an exit strategy if needed?
16. What form of legal entity does the company need to operate?
17. What form of contract or agency agreement is required?

Is it possible for the company to invest in on-the-ground operations in the future? Export Consultancy firms (SCA-Partners) should advise clients about these questions and encourage them to consider these issues seriously. Contact Us