elevation insights ™ | new market entry (global expansion strategies)

© Elevation Insights™ 2012-2014. All Rights Reserved.A Chirala Holdings™ Subsidiary & partner of Crescendus™ 1© Elevation Insights™ 2012-2014. All Rights Reserved.A Chirala Holdings™ Subsidiary & partner of Crescendus™

Elevation Insights™

New Market EntryGlobal Expansion Strategies

© Elevation Insights™ 2012-2014. All Rights Reserved.A Chirala Holdings™ Subsidiary & partner of Crescendus™ 2

brazilrussiaindiachinaaustraliacanadasouth koreasaudi arabia

indonesiasouth africanigeriamexicoturkeysingaporeqataruae

usa japan germany uk france swedenswitzerland ``netherlands denmark israel

vietnampolandmalaysiamongoliaperuczech republicPhilippinesangola

© Elevation Insights™ 2012-2014. All Rights Reserved.A Chirala Holdings™ Subsidiary & partner of Crescendus™


New Market Entry: International Expansion

Mandate initiated by:This Mandate is generally requested by any of the following senior management personnel within a company-Board of DirectorsCEOCFOVP SalesVP MarketingVP StrategyVP Business or Corporate Development

Additionally, external investors and analysts may also demand new market expansion strategies from the CEO/CFO,during investor relations road shows & conference calls.

Executive Level Mandate

Internal Company Mandate Description:Our business is highly concentrated in domestic markets and accounts for over 3/4th’s of our revenues. This lack ofdiversification coupled with intense domestic competition, slowing market growth & pricing pressures is unsustainablefor our business in the long run.

I want the team to investigate and develop an international expansion strategy to enter new markets and present apreliminary report for discussion at the next Executive Meeting. Limit the presentation materials to 10-12 slides.Supporting materials can be placed in an internal folder.


Internal Team Meeting (scheduled by Executives within your company)

Director, Product DevelopmentProduct Managers (for primary product lines)Director, Business DevelopmentDirector, Corporate DevelopmentDirector, R&DFinancial Analyst (s)VP R&DVP EngineeringVP ManufacturingFinancial Controller (s)Business Unit LeadersLegal CounselVP RegulatoryVP Human Resources

VP MarketingVP Sales & ServicesVP Product DevelopmentVP StrategyVP Business or Corporate DevelopmentCFODirector, Product DevelopmentDirector, StrategyDirector, MarketingFinancial Analyst (s)Director, Market Intelligence

The task requested by the Executive Team is highly strategic and will impact a wide range of business units & internalprocesses. As a result, collaboration & joint buy-in from senior management leaders will be key from the early stage ofproject deliberations.

Note- The composition of teams and titles varies by company, depending upon it’s size, offerings, markets & specificcompetitive situation. As the scope of the project expands, additional team members may be required.

Internal Team Involved (Core) Supporting Team Members


Tasks discussed within Internal Team Meetings (by Core Attendees)

• Selection Criteria• Markets (Countries) with significant growth opportunities• Market readiness for target product lines• Wide range of key macroeconomic factors, including stability of target markets• Intensity of Competition within various target markets•Access to key opinion leaders & potential customers (decision makers)• Resources needed to enter a new market quickly• Greenfield approach vs. Strategic M&A or Joint Ventures with established players in local markets• Promising target markets that can neutralize competitive threats from primary competitors indomestic markets•Access to talent (e.g. Specialized Sales/Services/R&D/Executives)• P&L & attractive financials

• Due Diligence of Target Markets• Using above selection criteria•Ability to gather and analyze reliable market intelligence information by target market

• Establishment of Common Metrics for Analysis• Creating a single unified template document• Prioritizing target markets criteria (with weighted attributes )• SWOT Analysis & ranking of targets/attractive markets shortlist for internal discussions•Identifying local target sites within shortlisted markets

• Execution/Next Steps• Prepare presentation slides for Executive Meeting

Key Tasks


Information Needs required to complete your “Next Steps”

KeyInformationNeeds

• Build a single unified target assessment template document• Populate the template document with complex information pertaining to the various targetmarkets• Target market intelligence information types includes:

• Country Specific Macroeconomic Indicators & Statistics• Widely used parameters include GDP, economic output by industry,Unemployment rate, Imports/Exports, Consumer Demand/Activity, Population,Birth/Death Rates, Gender, Household Income, Personal Savings Rate, Inflation,Government Investment in Key Sectors & National Initiatives, R&D expenditures,Intellectual Property filings, consumer surveys/sentiment, Debt, Productivity,Poverty, Labor Costs, Long term economic trends/growth rate projections,Economic Policy, etc.

•Market Intelligence Data by key sectors:• Health, Energy, Infrastructure, Science & Technology, Public, Private , Education,Environment, Agriculture etc.

• Target list of key potential customers for market size estimation• Key Business Models employed by successful ventures in local markets• List of primary competitors in target markets, including their product lines, strategy,new initiatives, partnerships•List of potential partners for M&A or Joint Ventures• Comprehensive Market Analysis- Regulatory landscape, Manufacturing options, SupplyChain sourcing, Sources of Innovation/R&D partnerships• List of economic incentives offered by target markets


Execution Options: Internal “do-it-alone” Approach vs. External Help

External Help: Elevation Insights™

Internal Approach

Elevation Insights™ can collect, analyze, report & maintain your global new markets intelligence data, and helprelieve some of the burden of your top management personnel. In addition to building and maintaining yourmarket intelligence information system for your key markets, we will also offer our recommendations and assistyou with your call to action items for the various promising markets. These action items may include newopportunities for engaging external partners within target markets, building market entry value propositionstrategies & generating prospective customer targeting materials (letters, strategy and customerpresentations) that are tailored to various decision makers.

We can also develop documents (e.g. MS Excel, Word, Power point or place them all on a secure website) thatcan act as a central repository for your annual strategy sessions.

40-50 >50KeyMarketsShortlist

PotentialInformationTypes/Market

Note- Actual data figures can vary greatly, depending upon industry space.

X

Resource Strain

• 10 plus senior management & top salesteam members will need to spend extensiveamounts of time, in addition to regularduties.• Real Costs incurred.• Information gathering, analysis & reportingchallenges add additional pressures,lowering productivity.

Frequent Information UpdatesRequired

Access to > 1000 indicators & global statistics data


Decision Time: Let your internal ROI guide you!

Time Cost Decision•Internal Meetings

•Initial strategy discussions•Setting up of internal program office& work streams•Follow-up strategy discussions•Information gathering•Information review & analysis•Conference calls with traveling team•Data analysis & reporting•Series of follow-up discussions toreview key accounts data and analysis• Decision meetings to go overrecommendations shortlist• Call to Action set of meetings &preparation materials• Updating above materials with newinformation & re-do above decisionmaking process.

• Internal Email Chains/Calls• Regular Duties Impact

• Overtime to focus on regular duties• Productivity & potential revenueimpact on existing responsibilities• Stress on your current team•Potential attrition of top performers

•On-Going Maintenance• To keep market intelligence current& update data analysis & reporting

•Key Parameters

• Total number of meetings• Total time spent on attendingmeetings and completing meetingtasks (incl. email time, conferencecalls, presentation reports, targetdocuments, information costs)• Total number ofattendees/meeting along withcomposition (e.g. VP, Director,Strategic Sales Personnel)• Calculate total cost based ontotal time and fully loaded costfigures by various attendees, forall the tasks involved incompleting the project.

Use Fully Loaded Cost Figures:Manager level: $100-125/hourDirector level: $150-200/hourVP level: $250-350/hourNote:Placing a cost figure on all yourinternal activities will highlight thetrue cost of completing a task. Thisis often ignored within internalcompany settings while dealing withsalaried employees.

Situation 1If your internal total costs,senior managementavailability bandwidth, andtimelines are acceptable toyour company, then it isprudent to complete theproject internally withoutany external help. A keyassumption here is that yourcompany has all the rightskill-sets to complete theproject.

Situation 2If the right skill-sets areunavailable within yourcompany or the timelinesand total internal costs arenot acceptable, thenwe recommend seekingexternal help.


If your company is currently facing some of the challenges mentioned in thispresentation, we encourage you to contact us.Telephone:1-(865)-332-0942Email:[email protected]:www.elevationinsights.com

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elevation insights ™ | new market entry (global expansion strategies)

Marketing

product development

diligence of target

various target markets

business development

corporate development

domestic markets access

strategy director

primary product lines