How to expand with minimum risk in emerging markets?
I want to get feedback from experts in construction field. Regional expansion usually comes with risks. How do you minmize the risk and increase the opporunities?
I'll start with my response to a similar question posted a couple of weeks ago:
1. Find capable trustworthy local partners or US immigrants from the target markets.
2. Make use of industry associations both here and abroad. Often the fact that someone has been welcomed into the industry fold means some amount of vetting has taken place.
3. Your strategic plan for your target market should be consistent with that country's development priorities.
4. Spend as much time as is feasible in the target country. US government resources are helpful but there's nothing like being there and seeing for your self the environment you're selling into. It will also help to implement the above suggestions.
In general take the attitude that it's a long term engagement you're entering into with your local partner and possibly the government of the target country. In Africa especially the appreciate physical presence before, during and after the sale. They get it from our European and Asian competitors more than from us Americans.
Do as much free targeted marketing as possible. Linkedin advertising good SEO and if you have a little money you can expand on this with google ads. If you are construction project focused then cherry picking your opportunities from Glenigan data is where I would start.
I would like to touch upon the same answer I provided for a similar question in this forum. When you are looking to expand your business in an emerging market, do your research and home work well.
You can check with your existing customers if they are already familiar with new markets. They can help you with some great insights.
Social media will home handy as well. Not only for your research but also for your reach out for customers and delivery.
In your research make sure you cover the local economic stability as well to reduce risks.
Good question with no simple answer. You can minimise your risks and maximise your opportunities by getting the multiple components of your strategy right, based on a complex view of the situation. I would rather ask, what is the key to succes? In construction, in is often the case that you rely on a network of investors, contractors and designers. What network do you rely on in your home market, and what network will you need to build in the new market?