www.pwc.com
11 May 2017
Foreign market entry strategies - How the big companies do it!
Igor Šiškin Stuart Browne Sunil Sharma Jure Tomc Magda Kwoska
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Agenda
Introduction
Foreign market entry – PwC framework
Panel discussion
PwC Slovenia •
Questions and answers
PwC’s global network of more than 200,000 people makes us well-placed to advise clients on pressing business issues
157 Countries represented US$35.9
billion FY15/16 total revenue 743
Offices & locations worldwide 223,468 people
of which 40% are working in developing new markets
58,081 people New joiners in 2016
3 PwC Slovenia •
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Introduction
Today questions:
Is there an ultimate strategy for entering new markets?
What are the key components to a great strategy?
What are the key considerations you should be aware of when entering a new market?
PwC Slovenia •
Each markets have its own intrinsic complexity and many organisations have struggled to initially succeed!
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Airtel in Africa
Walmart in Brazil
Some organisations that initially neglected to understand unique local needs and failed:
PwC Slovenia •
McDonald‘s in India
A framework for growth in new markets
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Market potential
Customer segmentation
Product / service and pricing
Channel
Operating processes
Supply chains Investment roadmap and partnerships
Leadership, talent and governance
Cultural capital
Regulation and tax structure
Institutional landscape
Country & strategic risk
PwC Slovenia •
Some opportunity areas for growth
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Regulation & tax structure Institutional landscape Country &
strategic risk
1. Understand the political and economic risks in the new market
1. Understand the various legislative and judicial risks in the country
1. Understand the regulations and taxations for foreign investors
Market potential Customer segmentation Product and pricing
1. Estimate the opportunity size based on assessing the relevant markets for our products and services
1. Identify target customer segments based on volume and purchase behaviour (income/ geography/culture or need)
1. Identify the core need of the target segment and modify the existing product suite to address that need
Business Environment
Value Proposition
PwC Slovenia •
Using the framework here are some opportunity areas for growth
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Investment roadmap & partnership
Leadership, talent & governance Cultural capital
1. Understand the local cultural norms and institutionalise an appropriate culture in the team
1. Identify partners or acquisition targets to strengthen our value proposition and build capabilities in new markets
1. Identify skills to succeed in a new market
2. Identify, develop and build the leadership and team
Channel Operating process Supply chain
1. Develop the channel strategy to effectively and optimally reach the target customer segments
1. Identify which business /operating processes need to be imported and which should be localised
2. Benchmark the business functions with local best practices
1. Develop a strategic, tactical and operational framework to manage and optimise the supply chain
Operating Model
Financial and Human Capital
PwC Slovenia •
Potential goals for each stage of the framework
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A. Understand business
environments
B. Set tailored growth targets
D. Enable sustainable
growth
C. Customise and optimise capabilities
PwC Slovenia •
www.pwc.com
11 May 2017
Foreign market entry strategies - How the big companies do it!
Igor Šiškin Stuart Browne Sunil Sharma Jure Tomc Magda Kwoska
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