If you are running an established business and are considering expansion into another country, there are so many factors to consider. Where do you start?
A common way to break international market research into manageable chunks is by doing a PESTLE Analysis:
P - Political
E - Economic
S - Social
T - Technological
L - Legal
E - Environmental
To elaborate slightly on each of the 6 steps:
Political - for starters, is the country stable enough for you to want to visit or send you staff there? Are there any trade restrictions between the 2 countries?
Economic - How does the exchange rate affect your pricing? Would you need to drop your prices to be competitive against local companies and if so, could you remain profitable. Are there any import taxes that would affect your pricing?
Social - is there already an appetite for your product or service? If not, is there a reason why or simply an opportunity to create awareness and demand for what you can supply? Technological - Is the necessary infrastructure in place for you to deliver your solution and for it to be used? For example, if you provide online software, do the right people have the right hardware to use it and good enough Internet connection?
Legal - Are there any restrictions on the way you must trade in the target territory? Must you work through a local partner firm rather than being allowed to trade directly with the end buyer as an overseas company? Does your standard contract offer you sufficient protection in another jurisdiction?
Environmental - Are there any pollution / recycling related elements to your product?
There are so many factors for you or your marketing team if you have one to consider during overseas expansion, but but the 6 steps of a PESTLE analysis may help to break your research down into a less daunting series of tasks and look at the risks and opportunities more clearly.
A common way to break international market research into manageable chunks is by doing a PESTLE Analysis:
P - Political
E - Economic
S - Social
T - Technological
L - Legal
E - Environmental
To elaborate slightly on each of the 6 steps:
Political - for starters, is the country stable enough for you to want to visit or send you staff there? Are there any trade restrictions between the 2 countries?
Economic - How does the exchange rate affect your pricing? Would you need to drop your prices to be competitive against local companies and if so, could you remain profitable. Are there any import taxes that would affect your pricing?
Social - is there already an appetite for your product or service? If not, is there a reason why or simply an opportunity to create awareness and demand for what you can supply? Technological - Is the necessary infrastructure in place for you to deliver your solution and for it to be used? For example, if you provide online software, do the right people have the right hardware to use it and good enough Internet connection?
Legal - Are there any restrictions on the way you must trade in the target territory? Must you work through a local partner firm rather than being allowed to trade directly with the end buyer as an overseas company? Does your standard contract offer you sufficient protection in another jurisdiction?
Environmental - Are there any pollution / recycling related elements to your product?
There are so many factors for you or your marketing team if you have one to consider during overseas expansion, but but the 6 steps of a PESTLE analysis may help to break your research down into a less daunting series of tasks and look at the risks and opportunities more clearly.
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