If you are going to invest in a company with international expansion plans, you want to make sure that their product or service has good chances of being successful in the countries where you have ambitions.
The United States, as the world’s largest economy, is a highly dynamic and competitive market. With diverse consumer preferences, a business-friendly environment, and significant purchasing power, the U.S. is a key market for international businesses. However, its size and complexity require careful planning.
The U.S. market is vast, affluent, and offers significant opportunities across various industries. Key statistics include:
The U.S. offers a relatively straightforward environment for English-speaking businesses but still requires attention to certain localization aspects.
The U.S. market is characterized by consumer diversity, brand loyalty, and a strong emphasis on value.
While the U.S. offers unparalleled opportunities, it also presents challenges for businesses unfamiliar with its scale and regulatory framework.
With local people in over 30 countries around the world, we can quickly do a regulatory, market and competition assessment in multiple markets at the same time. Connect with Alfred Griffioen to see what we can do and receive a quotation.
Where it comes to assessing the viability of a product or service in a new market, we always look at the following aspects:
Can the product be imported and sold in the country, what are import duties and are there any restrictions on service delivery? What are the investments to comply to all regulations?
Is there a genuine demand for this product or service in the market and which aspects are decisive for the customers? What are common channels for marketing and sales?
How fierce is the competition and is there a clear market leader? Is there room for a new entrant and what happened to other companies trying to penetrate the market?
What steps are needed to enter the market and what are the related costs. How quickly can you expect revenue and what is a reasonable pay-back time?
We make these assessment with local people in over 30 countries around the world, who report in a similar way. This way you get a good comparison and you can total up the investments needed for global growth.
If the company the we are assessing already has sales in different countries, we can determine distributor performance or sales staff performance.
We do this by correcting the actual turnover with data about:
Combining the data of the various countries over time leads to a growth curve where overperformers and underperformers can be easily identified.
We can then do selective interviews what causes any underperformance, and you can take corrective measures.
A curve like this also helps to estimate the potential in a new market.
Please note that there are many countries in the world and the biggest ones or the ones nearby are not automatically the best choice. It all depends of the market growth, the competition and the barriers for entry.
Therefore I would advise you to make a short-list of at least three, but preferably five potential new markets and compare them against the same criteria.
