After you have familiarized yourself with the basics of internationalization and answered the most important questions about entering the export market, the next step is to evaluate the appropriate target market.
Second step: market evaluation - find the right export market
The second step “Market Evaluation” concerns finding the right target market for your company. There is a wide variety of potential export markets. Is it better to enter a mature market, where competition is fierce, or an emerging market? There, the supply may be smaller, but the entry is just as challenging due to the lower purchasing power. So how do you decide on the right market and which market mechanisms do you need to know?
In a globalized world, there are a multitude of different export markets. But how do you decide on the right one? Every market has challenges, be they economic, political or cultural. SMEs that are newcomers to internationalization should focus their strengths and develop one market after another. This way, you also benefit from a learning curve and build up your international presence step by step. The next article will show you what you need to look out for: Find the right country for export entry!
Market analyses and studies are useful for mapping the most important data and key information of a market. However, no report can replace your own experience with the target market. Travel to the country yourself, meet relevant business partners, make contacts and get to know the market mechanisms. You can find out exactly what they are here: Market mechanisms abroad!
Below you will find helpful articles on suitable export entry countries, useful online tools with country comparison options and detailed market information on potential target countries. If you have already solidified your choice of your target market, we will be happy to support you with your market analysis.
Step three: Check forms of market entry
Once you have decided in favor of a market, it's time to get specific: Which business and sales models are suitable for the target country? Which pricing strategy can be implemented and how does an efficient cost structure emerge? The answers are in the next step!