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What changes in the next market?

Compare the commercial model that works today with what a new market will require.

A successful Gulf operation provides experience and capabilities for expansion. Some advantages travel with the business; others depend on local buying patterns or relationships. Examine the difference before carrying the current forecast into another country.

Scroll sideways to compare all columns.

Test what can travel
ConsiderationExisting marketNew market
Customer demandIdentify the customer segments and buying patterns behind current sales.Research whether those segments buy in the same way and whether the offer addresses the same need.
Product and capabilityEstablish which product, process or expertise supports the business’s performance.Assess what remains useful and what has to be adapted or built locally.
DistributionExamine the relationships and channel terms that provide access to customers.Compare a distributor, partnership and directly owned operation, including margin, control and resource requirements.
Customer serviceIdentify the people and operating capacity required to serve the current customer base.Establish what the regional center can supply and what the new operation must provide.
Capital and managementAccount for working capital and management attention already committed to the business.Include the reporting, service and funding demands of expansion alongside the investment in the market itself.

Make the first expansion useful to the next

Several market entries can place demands on the same people and capabilities. Map those dependencies before setting the sequence. Identify what must be learned or established in the first market before the next commitment can be supported.

Revisit the assumptions as results arrive

Choose commercial and operating measures that show whether the entry model is working. Review the case for further expansion, adaptation or a pause in investment against those measures.

The plan should retain the distinction between an advantage the business brings with it and a local capability it still needs to establish. Otherwise, early spending can outrun the evidence for repeating the model.

A regional expansion plan should account for the resources each market needs locally and the demands it places on the existing operation.

General commercial information. Advice on a particular business, transaction or jurisdiction requires a separate assessment.

Related serviceMarket entry & commercial growth