Market entry strategy for global retailer
Case study:
Market entry strategy for global retailer
- Situation
- Global retailer with strong positions in maturing markets wanted to build a profitable presence in new growth markets
- Client needed guidance on priority countries, entry routes, local adaptations of the business model, required investments and market entry sequencing
- Actions
- Set strategic and financial guardrails for market entry as North Star
- Ran in-depth market studies for shortlisted countries covering market growth outlook, channel structure, competition and key trends
- Analyzed consumer behavior including purchase criteria, marketing channels and the role of local assortments
- Estimated gross profit pools by benchmarking local competitor assortments and prices against the client’s global range and identifying gaps and profit pools
- Evaluated and shortlisted market entry routes (organic vs inorganic, regional vs. national, B2C vs B2B)
- Assessed fit between the client’s global value proposition and local market and consumer needs and the impact of localization on complexity and group synergies
- Screened country–entry route combinations, reviewed M&A targets and narrowed down the set of viable options
- Built business cases for shortlisted combinations including financial impact and required investments
- Developed a sequenced market entry roadmap with preferred geography and entry route combinations
- Results
- Recommend priority countries and their best entry route (organic vs M&A) per geography including detailed business cases
- Sequenced overall market entry roadmap with clear implementation plans
- Obtained board approval to execute the market entry strategy including M&A negotiations, local pilots and concept localization