IT is an undeniable fact that growth is at the apex of any entrepreneur’s vision.
There are uncountable measurements of growth in the life cycle of any business but market size talks more towards this achievement.
That is the reason why market entry strategies should be known and applied by our entrepreneurs.
At every stage of doing business and product/service development, there is a new market that is waiting for your equal investment.
It takes not only market research but infusion with Artificial Intelligence, data mining and other forecasting tools to know with precision which market to enter (also at which stage of doing business).
In other editions, we looked at some marketing strategies which were overall and not specifically for market entry.
In this edition, we then narrow down in trying to unpack some of the common strategies which have inspired growth of most entrepreneurial successful businesses which are now global corporates.
To start with, as we try to go beyond what general literature can say, market entry for entrepreneurs should be looked at a broader level (not limited to business size).
That is by looking beyond domestic markets to a multinational focus where the entrepreneurial business has never been known.
Thus the entrepreneur should be able to come up with strategies that help in taking the business and its products/services to a new customer/demographic segment.
Just to remind you, an effective marketing strategy knows no borders and it should be crafted beyond a localised vision.
We should take advantage and be guided by the law of borders ,which encourages a local brand to go global fearlessly.
We sometimes tend to be overprotective of our business idea(s) together with the brand such that we don’t see other new market entry opportunities, which are for us through others.
This then takes us into licensing as one of the available market entry strategies for our entrepreneurs.
Here the entrepreneur will license his/her intellectual property (IP) to other businesses for them to be at the forefront in getting into new lucrative markets.
These businesses have an upper-hand in understanding certain market dynamics within the targeted operating landscape, with better understanding of government regulations and distribution channels.
The partnered business through licensing can help your business venture into new markets by doing relevant marketing activities, customer service management and selling on your behalf.
This is effective, especially for our start-ups who have a brilliant selling business ideas and brands, but lacking the capacity/capital to go that wide.
In branding there is a law of fellowship where brands should welcome other brands for further market growth.
That is one strategy that was done in 2018 when Nestle was given perpetual rights by Starbuck to sell its products globally.
So, it is an opportunity for our entrepreneurs to enter new foreign markets.
Of course, it should be done carefully since product or service ownership might be diluted by the licensee if some critical terms and conditions are skipped.
As we go further, there is another common market entry strategy of joint ventures that our entrepreneurs should also try in their drive for such growth.
Yes, it is a commonly said strategy with little practice by our home-grown entrepreneurs but this time try configure towards new market entry.
As aforementioned, sometimes we have to share our idea(s) and future business plans with others whom we will collaborate with for better returns.
With this strategy an entrepreneurial business can partner with one or more businesses to help each other for a new vibrant local/global market entry.
Those in the school of economics can confirm the benefits of economies of scale that goes further into a positive balance (of summed revenues and costs), both in the short and long-run of a business.
Here we talk about collaborative marketing activities such as promotions, advertisements, customer relation technologies and so forth.
Resources are, therefore, shared for aggressive market penetration and sustainable growth.
Some might have tried the same before and failed, but this time let’s go back to the drawing board for us to understand/correct where we did it wrong.
Mainly with this strategy conflicts happen out of greediness, mistrust and not working in good faith, but legal contracts/trusts may also help push this drive for better.
Lastly, franchising has been one traditional strategy for new market entry which our entrepreneurs can also ride on in the current and achieve a greater mileage.
This is rewarding, especially when you turn your brand/business into a franchise that spreads into other markets both locally and globally.
It is a merit/excellence based strategy since you should be an attractive brand first before you turn into a wide networked interface by others in various geographic segments.
This has been common in the retail and hospitality sector such as Holiday Inn and KFC franchises, especially the latter which is currently on a higher market expansion in Zimbabwe.
You can do likewise!!!
There are many market entry strategies for our entrepreneurs besides the mentioned so far. The choice is yours as we grow into corporates.
*Dr Farai Chigora is a businessman and academic. He is the head of management and entrepreneurship at the Africa University’s College of Business, Peace, Leadership and Governance. His doctoral research focused on business administration (destination marketing and branding major, Ukzn, SA). He is into agribusiness and consults for many companies in Zimbabwe and Africa. He writes in his personal capacity and can be contacted for feedback and business at fariechigora@gmail.com, www.fachip.co.zw, WhatsApp mobile: +263772886871