What Market Entry Barriers are and why they matter
Market Entry Barriers stand between you and your product´s success in the target market. When people start evaluating your product, it boils down to two questions: Will any organization buy it and will the people use your product?
People, as well as organizations, don´t like to change the way how and with whom they do business. Especially, they hate to deal with foreigners under new terms and conditions.
Important Market Entry Barriers
- The Cognitive Hurdle: Organisations and employees historically have grown comfortable with the status quo.
- The Resource Hurdle: The greater the shift in strategy, the greater the resources it requires for execution
- The Motivational Hurdle: How to motivate key players to move fast and tenaciously to carry out a break from the status quo?
- The Political Hurdle: How to overcome opposition from powerful vested interests
Overcome Market Entry Barriers with Fair-Process
Fair process is a concept developed by W. Chan Kim and Renée Mauborgne that builds execution into the strategy by creating people’s buy-in up front. If the fair process is exercised in the strategy formulation phase, people trust that a level playing field exists, inspiring voluntary cooperation during the execution phase. Research has shown that people care not only about outcomes but also about the process that produces these results. For a decision process to be seen as fair, the people affected must have the opportunity to give input and possibly to influence the decision, and the decision process and rationale must be transparent and clear. Existing research has shown empirically that fair process enhances both employee motivation and performance in execution.
Whether people are senior executives or shop employees, they all look to these elements. Three mutually reinforcing elements inspire cooperation and define the fair process because people trust that a level playing field exists.:
- Explanation, and
- Clarity of expectation
Fair Process establishes stakeholder buy-in up front.
Do appropriate research and identify stakeholders
It´s a waste of time and budget to enter the German market without a plan. Better connect with a local expert who knows, what he´s doing. While you may try different value propositions in B2C, that´s hardly an option in B2B (because of implementation efforts). An investment in premium research like our pays if your business has a significant business potential, as we help to understand the target market dynamics within the new region. We identify key stakeholders and accessible customer segments.
- Identify buying centers, their key players, and hidden agendas,
- Work with these individuals with a fair process minded attitude,
- Identify organizational dynamics and the ones open for business.
Working with a local go-to-market specialist will give you access to local insights in form of target market know-how and unbiased expert feedback. And as any bait has to appeal to the fish, not the fisherman, you should focus on your target customers in the new region.