Entering New Market
Subject:Client wanted advice to enter in a new market
A Client came to us wanting to enter a new market and wanted MWC’s advice in deciding the benefits in doing so and evaluating the different possibilities available.
Our Task Was
- To analyze its existing business structure and market penetration
- To understand the reasons why the decision was made to enter the new market
- To evaluate with client if entering that new market was the best path forward
- If our evaluation proved that entering that new market was a good decision present the challenges that we believed needed to be considered
- If the challenges could be overcome present the different choices available for entering the new market
What We Did
Besides spending much time in meetings to understand what management wanted from us, we eventually concentrated in the following aspects:
- Briefings: We briefed the CEO and top level employees of the company to understand the reasons behind the decision to enter the new market and uncover discrepancies.
- Evaluation: We evaluated the new market vis a vis the company’s strengths and the impact of the decision to its existing business.
- Evaluation: We briefly evaluated the operational, technological & marketing state of the company and we delineated the changes that the company should undertake to face the new development.
- We delineated the different choices that the company had in entering the new market, by way of partnering or going on solo and develop its own structure.
An experienced Legal & Regulatory Advisor was briefly engaged to provide information on the license obligations in the new market and we helped the Compliance Officer to engage a Compliance Consultant to help her evaluate her department needs if the company decided to enter the market on their own or through partnerships.
Decisions, strongly negotiated by the parties involved, were taken and the complexity of the new market’s entrance was very well understood by everyone.
- Although not all our suggestions on the path forward were implemented, the decisions that followed our consulting work were based on the discussions and findings that MWC provided.
- The company decided:
- Enter into a partnership to better understand the new market and give the business and compliance teams more experience
- Engage MWC in finding a company to acquire in the new market
- Hire a business development executive with experience in the new market to help the company on future developments in the new market.
The management team was for the first time engaged in a decision taken by the CEO and were pleased of their engagement in the decisions that followed. We encouraged the CEO (also owner of the company) to compromise between his own views – which he wanted corroborated by our work, MWC’s suggestions and independent advice and his management team’s positions.
* Note: The case studies are real although we have changed some of the details to respect the privacy of our clients.