Initial Strategy Concept

 • Where to go

  • How to go

  • Initial steps

  • Decision points

An initial strategy is not some grand design that takes months and ten thousands of dollars to put together. It is largely based on common sense and knowledge of your company position. The point is you need a logical starting place.

You read articles that give you a strong sense of a market in a certain country. You talk to a colleague who is doing well in France and you think, “I’m just as competitive in my market as he is in his, I should be there too.” You read about the staggering growth in China, or the enormous emerging middle class in Latin America, and you believe there ought to be a market for you. You go to a trade show and listen to speakers on international business. And you try to find time to surf the Web and its endless sources of information. And so on. But how do you organize your thinking into a starting place?

It’s easy, and somewhat intuitive at this stage. First, as you swim through the above activities, just decide where it seems logical to go. One basic issue to consider in this decision is whether you want to target developed or emerging markets, and then to target specific countries within the category you choose. Sometimes – but not always – developed markets, such as Europe, are so mature and competitive that finding a cost effective entry point is difficult. And sometimes – but not always - emerging markets are difficult, because of cultural and language issues, IP concerns, pricing difficulties, and the like. In any case, pick two or three countries as starting points. And its OK to be a little biased at this stage. What are your personal preferences? It’s OK to pick a country simply because you like it. And then gather a little market information on each country you choose (on the Internet) to narrow it down to your primary and secondary targets.

At the same time, think about logical approaches to the chosen markets (How to). This means, first, what kind of detailed market information will you need to know if there is a real market there for you or not? (You don’t have to get the information at this point, just decide what it is you need.) Second, it means what kind of partnership, if any, would be appropriate for your company and product line? There are many different kinds, each with pros and cons – various kinds of agents and distributors, producers, contract manufacturers, licensees, assemblers, etc. Third, what are the steps you want to follow to see if this initial strategy concept will work, or how it should be modified. Basically, those steps comprise the rest of the Strucom process, starting after Global Scan. And last, think about some possible decision points, perhaps based on market size, or pricing, or growth potential, or the like.

Now you have a starting place, and it didn’t take you long to get there. Strucom consultants can assist you in finding the right ideas also.

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