In order to formulate a successful market entry strategy, business leaders need to connect regional competitiveness data to their business goals after identifying target markets. This most often takes the form of profiling a target market based on publicly available information and needs specific to a business.
Michael Porter, the American business strategist, popularized this “Diamond Model,” which shows how two factors can be integrated for optimal success.
In this model, business leaders can see how publicly available information provided by multi-laterals organizations and government agencies relates to a real market conditions. The “government” encourages businesses to stimulate the economy and market, and realize its growth and competitive advantage.
Businesses that would like to develop a comprehensive strategy based on a model like Porter’s have a number of information requirements such as business factors, market demand, supporting industries, and that business’ strategy within the overall competitive landscape.
While large multinational firms have often institutionalized processes for achieving these information requirements, smaller and medium-sized businesses can focus on so-called “factor conditions,” which Porter identified as the most influential to determining competitive advantage.
Businesses with limited resources to support the decision-making process can develop market entry strategies with targeted reports that define:
• Corporate establishment regulations;
• Taxation policies;
• Incentives for businesses;
• Land access, availability, and cost;
• Labor access, availability, and cost;
• Basic service provision and costs.
This information allows a business to create initial consensus to support a prospective market entry strategy and execution plan because it addresses concerns that may arise from legal, accounting, human resources, and operations divisions; all of which are reflected at the c-suite level.