Strategic planning must be done in close collaboration with the client, since assumptions need to be validated to produce coherent figures in the financial analysis. As any experienced manager knows, having a strategic plan for any new market entry is an incredibly powerful tool when it comes to executing the leader’s vision. The India market is a highly complex market, and necessary preparations must be made in order to be successful in this international business endeavor.

The following sections of the analysis are used to assess:

• The attractiveness of the market
• The difficulties to enter in the market and the capabilities the client has to overcome them the potential   partners that could facilitate the entry
• The business case then gives the financial figures related to the opportunity and allows a final decision   regarding the use of a partner or not (comparison of sales achievement with or without a partner).

Market Attractiveness

Often, the first step in considering the worthiness of an international expansion effort is the attractiveness of candidate markets. Our network in the India market is well positioned to assist in assessing market attractiveness. Our assessments include:

• Market size
• Growth potential
• Expected profitability
• Meeting basic customer need
• Unmet customer needs

Ease of Entry

The ease of entry portion concentrates on the barriers that may impede a successful entry in the market. Foreign market entry can be risky business, and having advanced knowledge of necessities for operations in that market is critical. India has a totally different legal system that North American countries, and an objective assessment in the ease of entry into the India market is probably the most important step when considering an expansion project into India.

Some of the ease of entry criteria are:

• Regulatory requirements
• Regulatory support
• Investments needed
• Availability of qualified personnel
• Cost comparison with alternatives
• Present competition
• Potential competition
• Regional presence required

Partner Selection & Analysis

The selection of the right partner becomes a critical step toward maximizing value.

After establishing an understanding of your strategy (objectives), your operations (business model, key processes, capabilities), and your company culture (values, behaviors, organizational practices), we identify with you the selection criteria meeting your needs. Then we start our research to compile a list of possible partners that we match with the selection criteria. Our assessment is done based on desk research, databases, and telephone interviews with experts, officials as well as with the possible partners. The short-listed candidates undergo a due diligence that covers usually the following topics:

• Basic company information
• Experience in international business
• Management background
• Organization
• Corporate culture
• Reputation
• Financial assessment

The result of this step is a short list of candidates, ready for discussion and negotiations.

Ability to execute

Using the criteria defined in the previous sections, we compare the capabilities to execute the entry strategy of the client Vs partner(s). The result is the identification of areas of improvements for the company and where the client needs to train or get trained by a possible partner.

Economic Analysis / Business Case

The economic analysis section aims at determining the economic value of potential entry scenarios. These scenarios are identified jointly with the client before being assessed economically. To ensure the quality of the business case, the client has to provide and validate a part of the assumptions linked to their operations.

 
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