Country & market entry strategy
There are numerous options in which to enter a foreign market. These include direct exporting, licensing, franchising, set up a partnership (via a joint venture or strategic alliance) or acquiring a local company. Alternatively, you can localise production by setting up greenfield activities.
Various factors influence the optimal strategy, including products/services to be supplied to the market, local legal framework, transport costs, competitive landscape and availability of local partners and/or acquisition targets. In order to maximise your chances of success, it is essential to prepare the optimal route to market, whilst using local insights to guide the way.
- Optimal market entry strategy definition
- Draft roadmap for implementation (critical success factors, milestones, timing, budgets)
Business & financial plans
Preparing a business and financial plan will provide your company insight in the envisioned costs, risks and returns on investment. Planning at an early stage will enable you to mitigate risks.
- Business plan outlining the technical, commercial, operational and legal aspects of a market entry/growth strategy or investment
- Financial overview (P&L, CAPEX/OPEX and ROI)
- Investment memorandum to attract external debt or equity capital
Legal option assessment
In order to define your optimal market entry strategy, assessment of the local legal framework is inevitable. This takes into consideration your company’s unique business needs, industry in which you operate and the location which you envision to set up your business activities. The assessment comprises identification of options regarding different legal forms and analysis of advantages, disadvantages, limitations and restrictions related to these.
- Legal framework assessment
- Foreign Direct Investment regulations
- Registration requirements (legal and tax implications and obligations of entity)
- Possible import/export restrictions and limitations
- Capital importation requirements
- Availability of possible preferential policies
- (In)direct domestic taxes and tariffs relevant for operation
- Employment/transfer of managers and employees
- Rules pertinent to accounting systems and principles
- Legal options study
- Types of enterprise to establish
- Location in different types of development zones (Normal Zone vs. Bonded Logistics Park)
- Incorporation process assessment
- Critical requirements and approvals to be obtained
- Documents to be prepared
- Offices and organizations involved in the approval process
- Timeline of application and approval