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Third step: business model - check different forms of market entry

Every market is different: Which business and sales model is suitable for your company in the selected target market? Here you can find out which models exist, which regulations have to be observed and how the cost structure can be optimally structured.

Business Model

After familiarizing yourself with the basics of internationalization and then acquiring the most important market insights on potential target markets, you are now ready for step three in the internationalization process.

For successful export entry, it is necessary to examine your own business and sales models carefully. Not every company and every product needs its own local representative from day one. Cooperating with one reliable local distribution partner is often sufficient at the beginning. Here you can find out how to proceed.

Important questions you should ask yourself when entering the market: 

Which business model is suitable for our company abroad?

Outline three to five decisive factors for your offering from the perspective of your customers and compare how well different international business models can meet these requirements. As a rule, direct and indirect exports with local business partners are suitable models for first-time entry into new markets. You can read more about how to choose your business model here.

Which sales model is suitable for taking the step abroad?

Not all international companies need local representation from the word go. However, a strong and reliable partner is indispensable. We show you which sales models make sense in which situations and how you can build up your sales in the target market. Find the right sales model to take the step abroad!

What regulatory and legal precautions do we need to take?

Obtain the necessary information early enough and begin any approval processes in good time. Contracts are an important basis for formalizing successful future cooperation and helping to clarify who is responsible for what and how, and what happens when things change. A Swiss contract is not always enforceable or sensible abroad. Having the contract examined by a lawyer working in the target country is usually worthwhile. Read more about regulations here!

Which price points can we set abroad?

Examine the price structure at the different levels of trade in each market in detail. What specific benefit is your customer really prepared to pay more for? Create price-differentiated offers (modules, design, services) for different customer requirements in the market. Read here which strategy to use to set the right price.

How can we optimize our cost structure?

Examine and optimize the manufacturing costs of your products, if possible before you enter the foreign market. Compare suppliers and routes for goods flow and logistics abroad. In addition: alongside marketing potential, international markets also offer opportunities for optimizing procurement. Read more on: Optimize cost structure – but how?

On this page, we have compiled all the information you need on the subject of market entry. Use further links and deepen your knowledge in our articles. 

Step four: First steps in the market

You’ve decided on a market and have a rough plan of how you would like to proceed when entering the market. The next step is to get to gain specific knowledge of the market and to test market entry.

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