India stands out as one of the biggest contributors to the global economy. Government’s consistent support for business sector growth t through tax ratification, flexible foreign investment norms and trade liberalization, etc is encouraging the businesses to invest more and pump out better profitability. No doubt, India is the fastest growing economy in the world that makes it the perfect destination to invest but the businesses need to plan the Indian market entry strategy with utmost care; here comes the role of market entry strategy companies and M&A consulting firms in India to formulate sustainable market entry strategy with minimum risks.
Growing importance of M&A consulting firms in India:
The question is not ‘whether to deal or not’ but it is ‘how to deal to create sustainable value’. M&A (Mergers & Acquisitions), an important part of Indian market entry strategy, delivers multiple growth-oriented support as is highlighted by the shared research results:
- India saw more than 1,000 mergers and acquisitions (M&As) during 2017 – the highest in the current decade.
- Domestic M&A deals in India may touch $53 billion figure in 2019.
- M&A activities are expected to be more because of the government’s efforts in removing the regulatory hurdles.
- The number of M&A deals grew by 17.2 % during 2017 and 2018.
- The trend of M&A channelizing through PE is expected to grow in 2019.
Four Key Points of Market Entry Strategy for M&A Businesses:
No doubt, M&A is going to take Indian economy up to a higher level in 2019 and after years but the businesses need to have a long-term effective market entry strategy evolving four key aspects:
- Understand the Size of the Market and Its Growth Potential – Five Tips
Understanding the market size helps you to distinguish the addressable market and the available market. Understanding of both the market sizes gives you a better idea of the latest market trends and growth potential. Following five tips will help you understand the market size and the growth potential right:
- Bottoms-up analysis
- Competitor analysis
- Top-down market sizing
- Knowing market sub-segments
- Assessing the static market size
- Select the Right Entry Mode- Five tips:
An entry mode is a formulated channel to enter into the international market. The five key entry mode mechanisms are:
- Exporting
- Licensing
- Joint Venture
- Wholly owned subsidiaries
- Strategic alliance
- Identify the Right Business Partners – Five Tips:
Working with the business partner/s changes the whole dynamics of running a business. Following five tips may help you find the right business partner:
- Must be financially stable
- Must agree with your entrepreneurial spirit, vision, and values
- Must be free from personal liabilities
- Must have credibility and resources useful for your business
- Must have the necessary skills and experience
- Determine Which Product To Launch First – Five Tips:
Any new product launch needs perfect planning based on in-depth knowledge of the target marketplace. Rushing to a new market without setting your ducks properly is a recipe just for the disaster. The following five tips may help you determine which product to launch first:
- Define the Target Audience
- Plan to reach the target Audience
- Understand the buying pattern
- Be clear with the objectives of launching the new product; it must be useful for the target audience
- Know the competition to be different
Concluding Note:
India offers a favorable environment to invest in almost any business sector. The advantages delivered at all the stages by the M&A consulting firms in India support your investment plans. To start your journey, you must have a market entry strategy that can be advanced by hiring the best among the marketing consulting firms.
