Market exploration in a new market will require the entrepreneur to follow the following steps:
- Conduct market research: The company should conduct thorough market research to understand the market size, the potential for growth, the competition, and the preferences and behaviors of the target customers. This will help the company develop a targeted and effective strategy.
- Choose a market entry method: There are various ways to enter a new market, including exporting, licensing, franchising, joint ventures, acquisitions, and establishing a new subsidiary or office. The company should consider the advantages and disadvantages of each method and choose the one that best suits its needs and resources.
- Develop a marketing strategy: The company should develop a marketing strategy that considers the target market’s unique characteristics. This may include adapting the product or service to local preferences, developing a strong brand identity, and utilizing local advertising and marketing channels.
- Build a local network: A network of local partners and suppliers can help the company navigate the local business environment and establish a presence in the market. This may include establishing partnerships with local distributors, suppliers, or retailers.
- Understand local regulations and compliance requirements: The company should understand the local regulations and requirements to ensure that it operates within the law and avoids potential legal or financial penalties.
I recommend that a market entry process be preceded by market exploration of this new market. It entails the following steps. Some of the steps outlined below are common to market entry steps:
- Market research: The company should conduct thorough market research to identify potential new markets. This may involve analyzing market data, consumer trends, and competitor activities. The research should provide insight into the size and growth potential of the market, as well as any barriers to entry.
- Evaluate market potential: The company should evaluate the potential of each new market by considering factors such as customer demand, regulatory environment, cultural differences, and competition. This will help the company determine whether the market is a good fit for its products or services.
- Develop a market entry strategy: Once the company has identified a promising new market, it should develop a strategy for entering the market. This may involve adapting the product or service to meet local needs, establishing local partnerships or subsidiaries, and creating a marketing strategy tailored to the new market.
- Test the market: Before fully committing to a new market, the company may want to test the waters by conducting a pilot program or limited launch. This will allow the company to evaluate customer response, identify potential issues or challenges, and refine its strategy before fully entering the market.
- Establish a presence: Once the company has decided to enter a new market, it should establish a local presence by hiring local staff, building relationships with local partners, and establishing a physical presence such as an office or retail store.
- Monitor and evaluate: After entering the new market, the company should monitor its performance and strategy to ensure that it meets its goals and objectives. This may involve tracking sales, customer satisfaction, market share, and adjusting the strategy.
Specifically, to the question on market exploration in Greenland, let me share a few basic questions you should seek answers to as you think of this market.
What can be made in Greenland at a competitive price point?
What and where is the demand for goods and services? Is the need available inside the jurisdiction or outside?
What are the regulatory drivers and bottlenecks in this jurisdiction?
Can the selected goods and services be produced locally?
Will I need to depend on an external workforce to implement the idea?
What is the availability and reliability of this external or internal workforce?
What is the state of competition for the identified goods or services?
How easily can a potential competitor copy and replicate your business idea?
Are the competitors located within Greenland or located overseas?
What are the unique selling points of your business idea?
Will the idea resolve a customer pain point?
What is the future sustainability of the business idea?
Answers to these questions will give you a starting point. Once you have the answers, field-test the idea. You will gain some insights into the practical challenges during the field testing stage.
All this is done, and you are ready for a business rollout.
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