Business Development in a Global Market
BUSSINESS DEVELOPMENT IN A GLOBAL MARKET
Developing a business opportunity or introducing a new product into the global market place is a risky business at the best of times. Strong and precise business strategies along with extensive market research are the keys for developing a successful global enterprise. This essay will cover the core fundamentals required to best enter the global market while minimizing the risks. Core fundamental include, indentifying potential markets, product competition, risks involved, future growth potential, entry strategy and costs involved to enter the market place.
When identifying potential markets we must consider the benefit, risks and costs associated with each market. There are several questions that need to be asked. The first one being, what is the political stability and economic growth rate of the country. This will determine how high the risks are to enter and the future profitability of the market. In less developed nations you will find the risks are greater, the costs may also be greater as there is likely to be less infrastructure, more back handed payouts to the government for entitlements to do business etc. but the potential growth rate may be higher than in well developed political stable nations. Will the product offend or not be accepted by a nation’s religious or cultural environment. Once entered is expansion into surrounding nations accessible with free trade agreements. Is there any legal risk involved and at what cost. Available resources and the product competition must be known. This information is crucial when it comes to making the final decision on entry mode and strategy.
From these questions we can take a closer look at the risks associated in finer detail before deciding on the best potential markets for entering. First we will look at the political risks faced by investors, corporations and governments. This is a risk that can be understood and managed with proper thought and investment.
Developing a business opportunity or introducing a new product into the global market place is a risky business at the best of times. Strong and precise business strategies along with extensive market research are the keys for developing a successful global enterprise. This essay will cover the core fundamentals required to best enter the global market while minimizing the risks. Core fundamental include, indentifying potential markets, product competition, risks involved, future growth potential, entry strategy and costs involved to enter the market place.
When identifying potential markets we must consider the benefit, risks and costs associated with each market. There are several questions that need to be asked. The first one being, what is the political stability and economic growth rate of the country. This will determine how high the risks are to enter and the future profitability of the market. In less developed nations you will find the risks are greater, the costs may also be greater as there is likely to be less infrastructure, more back handed payouts to the government for entitlements to do business etc. but the potential growth rate may be higher than in well developed political stable nations. Will the product offend or not be accepted by a nation’s religious or cultural environment. Once entered is expansion into surrounding nations accessible with free trade agreements. Is there any legal risk involved and at what cost. Available resources and the product competition must be known. This information is crucial when it comes to making the final decision on entry mode and strategy.
From these questions we can take a closer look at the risks associated in finer detail before deciding on the best potential markets for entering. First we will look at the political risks faced by investors, corporations and governments. This is a risk that can be understood and managed with proper thought and investment.