Definition and significance of 1. market entry consultation

Market entry consulting refers to consulting services that help clients analyze, evaluate and develop strategies and programs to enter new markets or new business areas. Market entry consultation involves in-depth research on the macro environment, industry structure, competitive landscape, consumer demand, laws and regulations of the target market, as well as a comprehensive assessment of the customer's own resources, capabilities, strengths, weaknesses and other aspects. The goal of market entry consulting is to provide customers with clear market positioning, differentiated competitive strategies, reasonable investment budgets, effective risk control, and operational implementation plans to help customers successfully develop new markets or new businesses.

Market entry consulting is of great significance to customers, mainly in the following aspects:

-Market entry consulting can help customers grasp market opportunities, discover and develop potential new markets or new businesses, increase revenue sources and improve profitability;

-Market entry consulting can help clients avoid market risks, avoid blind investment or wrong decisions, reduce the risk of loss, and protect the safety of assets;

-Market entry consulting can help customers improve market competitiveness, build core competitive advantages through differentiation and innovation, enhance brand influence, and expand market share;

-Market entry consultation can help customers optimize market layout, improve market coverage and penetration, and improve customer satisfaction through reasonable regional distribution and channel selection;

-Market entry consultation can help customers promote market innovation, meet market changes and consumer needs, and enhance market vitality by introducing new technologies, new products, new services, and new models.

Three Difficult Problems of 2. Market Entry Consultation

Market entry consulting is a complex and arduous task. Consulting companies need to solve the following three major problems when providing market entry consulting services to customers:

-How to accurately judge the attractiveness and accessibility of the market? This is the first and most critical step of market entry consultation. Consultants need to conduct a comprehensive and in-depth analysis of the target market, including market size, growth rate, profit margin, cost structure, demand characteristics, consumption habits, degree of competition, barriers to entry, regulations and policies, etc., to assess the potential and difficulty of the market and determine whether the market is worth entering. This step requires consulting firms to use a multi-dimensional analytical framework, combined with quantitative and qualitative data, to conduct an objective and comprehensive assessment to avoid subjective and one-sided judgments.

-How to choose the right market entry mode and path? This is the second and most important step of market entry consultation. Consulting firms need to develop appropriate market entry strategies and solutions for clients based on their own resources, capabilities, strengths, weaknesses, etc., as well as the characteristics and requirements of the target market. Market entry models include direct exports, agents, distributors, joint ventures, sole proprietorships, franchising, franchising and other forms, each of which has its advantages and disadvantages and applicable conditions. Market entry paths include a variety of options such as first-mover advantage, late-mover advantage, and follower strategy, each of which has its risks and benefits. This step requires consulting firms to use competitive advantage analysis, combined with customer resources and capabilities, tailored market entry strategy.

-How to effectively execute the market entry plan and continuously optimize it? This is the third and most difficult step of the market entry consultation. Consultants are required to assist clients in developing viable market entry action plans and to monitor and guide clients in their implementation. Action plans include goal setting, task decomposition, responsibility allocation, timing, resource allocation, and risk response. In addition, the consulting company also needs to help customers establish an effective feedback mechanism and evaluation system, according to market changes and implementation, timely adjustment and optimization of the plan. This step requires the consulting firm to use project management tools, combined with the client's organization and culture, to develop a viable action plan.

3. the innovative thinking adopted by Champ Consulting in solving the three major problems

Shangpu Consulting is a company specializing in strategic management consulting services. It has rich industry experience and professional team. It has demonstrated innovative thinking and methods when providing customers with market entry consulting services. The following are specific cases of market entry consulting services provided by Shangpu Consulting for an auto parts company, an e-commerce platform and a medical device company, showing the application effect of the consulting company's innovative thinking in practice.

Case 1: Shangpu Consulting provides market entry consulting services for an auto parts company.

Customer background: The customer is a professional manufacturer of auto parts. The main products include car seats, seat belts, and air conditioning systems. Customers already have a high market share and brand awareness in the domestic market, but they have not yet formed a scale and influence in the international market. Customers hope to take advantage of the transformation and upgrading of the domestic automobile industry and the opportunities of the "Belt and Road" initiative to enter the Southeast Asian market and expand overseas business.

Consulting objectives: to help clients analyze and evaluate the attractiveness and accessibility of the Southeast Asian market, to develop appropriate market entry models and paths for clients, and to assist clients in developing and implementing market entry plans.

Consultation Process:

Step 1: Accurately judge the attractiveness and accessibility of the market. Using the PESTEL analysis framework, Champ Consulting conducted a comprehensive and in-depth analysis of the political, economic, social, technological, environmental and legal aspects of the Southeast Asian market, and assessed the potential and difficulty of the market. Champ Consulting found that the Southeast Asian market has the following characteristics:

Political aspects: Southeast Asian countries are mostly developing countries, with low political stability and certain political risks. However, Southeast Asian countries have good diplomatic relations with China, and under the influence of the "Belt and Road Initiative" initiative, the government has a positive attitude towards Chinese enterprises entering the region and has given certain policy support and concessions.

Economic aspects: Southeast Asian countries have different levels of economic development, but generally show a trend of rapid growth. Southeast Asian countries have a huge population size and consumer market, and the demand for automobile consumption is strong, and the automobile industry has high growth potential. At the same time, Southeast Asian countries have close economic and trade exchanges with China. Affected by the free trade agreement, trade barriers are low and trade costs are low.

Social aspects: Southeast Asian countries are mostly multicultural societies, with different religions, languages, customs and other differences. This is both a challenge and an opportunity for foreign companies. The challenge lies in the need to adapt to and respect local cultural habits and avoid unnecessary conflicts and misunderstandings; the opportunity lies in the use of cultural differences to create differentiated competitive advantages and meet the needs of different consumers.

In terms of technology, the technical level of Southeast Asian countries is relatively backward, and the auto parts industry lacks independent research and development capabilities and core technologies. This is an advantage for Chinese companies. They can use their leading position in technology to provide high-quality, high-performance, and high-value-added products to improve market competitiveness.

Environment: Southeast Asian countries have serious environmental problems, such as pollution and disasters. This is a challenge for auto parts companies. It is necessary to consider the impact of environmental factors on production, transportation, sales and other links, and take corresponding countermeasures to reduce environmental risks.

Legal aspects: Southeast Asian countries have imperfect legal systems, weak enforcement of laws, and inadequate protection of intellectual property rights. This is a risk for auto parts companies, and they need to pay attention to complying with local laws and regulations, preventing legal disputes, and protecting their legitimate rights and interests.

Step 2: Select the appropriate market entry mode and path. According to the customer's own resources, capabilities, advantages and disadvantages, as well as the characteristics and requirements of the Southeast Asian market, Shangpu Consulting has formulated appropriate market entry strategies and plans for customers. Champ advises clients to adopt the following market entry models and paths:

Market entry model: Champ Consulting recommends that customers use the joint venture model to enter the Southeast Asian market. The advantage of joint ventures is that they can use the resources and relationships of local partners to reduce market access barriers, increase market awareness, increase market trust, and expand market share. At the same time, joint ventures can also share risks and costs and improve the return on investment. The disadvantage of joint ventures is the need to coordinate communication with local partners to solve problems such as benefit distribution and management control. Therefore, Shangpu Consulting recommends that when choosing partners, customers should pay attention to their background, reputation, business status, strategic goals, etc., choose partners who have common interests and vision with themselves, and clarify the rights and rights of both parties in the contract. Obligations.

Market entry path: Champ Consulting recommends that customers use the first-mover advantage path to enter the Southeast Asian market. The advantage of first-mover advantage is that it can seize market opportunities, establish brand image, occupy market share, form scale effect, and hinder the entry of latecomers. At the same time, the first-mover advantage can also use its leading position in technology to provide high-quality, high-performance, high-value-added products to meet consumer needs and improve customer loyalty. The disadvantage of the first-mover advantage is that it requires greater market risk and uncertainty, and requires more resources and costs. Therefore, Shangpu Consulting recommends that customers should pay attention to adequate market research and testing when entering the market, formulate flexible market strategies and plans, and make timely adjustments and optimizations based on market feedback.

Step 3: Effectively execute the market entry plan and continuously optimize it. Champ Consulting assists the client in developing a viable market entry action plan and monitors and guides the client in implementing the plan. The action plan includes the following aspects:

Goal setting: Champ Consulting helps clients set clear and specific market entry goals, including time, location, product, market share, revenue, profit and other indicators, as well as the criteria and methods to measure the achievement of the goals. -Task decomposition: Shangpu Consulting helps customers break down the market entry goal into specific tasks, including market research, partner selection, contract signing, product development, brand promotion, channel construction, sales service and other links, as well as the specific contents and steps of each link. -Responsibility allocation: Champ Consulting helps customers assign market entry tasks to corresponding responsible persons or teams, clarify the responsibilities and authorities of each responsible person or team, and the way of collaboration and communication with other responsible persons or teams. -Timing: Champ Consulting helps clients develop a reasonable market entry schedule, determining the start and end times of each task, as well as the sequence and relevance of each task to ensure the smooth implementation of the market entry plan. -Resource allocation: Shangpu Consulting helps customers reasonably allocate the resources required for market entry, including human resources, financial resources, material resources, information resources, etc., as well as the acquisition and use efficiency of resources to ensure the effective implementation of market entry plans. -Risk response: Shangpu Consulting helps customers identify and assess the risks that may be encountered in the process of market entry, including political risks, economic risks, social risks, technical risks, environmental risks, legal risks, etc., as well as the probability and impact of risks, And formulated corresponding risk response measures, including preventive measures, mitigation measures, transfer measures and emergency measures to reduce the impact of risks on market entry plans.

Consulting effect: Champ Consulting provides customers with professional and efficient market entry consulting services, helping customers successfully enter the Southeast Asian market and achieving good results. The customer's sales and market share in the Southeast Asian market have exceeded the expected target, and the customer's brand awareness and influence have also been improved. The customer has expressed a high degree of satisfaction and appreciation for the service of Shangpu Consulting.

Case 2: Shangpu Consulting provides market entry consulting services for an e-commerce platform.

Customer background: The customer is an enterprise specializing in cross-border e-commerce platform, and its main products include clothing, shoes and hats, bags, accessories, etc. Customers already have strong competitiveness and loyal user groups in the domestic market, but they have not yet formed scale and influence in the international market. Customers hope to use the development of Internet technology and the trend of global trade to enter the European market and expand overseas business.

Consulting objectives: to help clients analyze and evaluate the attractiveness and accessibility of the European market, to develop appropriate market entry models and paths for clients, and to assist clients in developing and implementing market entry plans.

Consultation Process:

Step 1: Accurately judge the attractiveness and accessibility of the market. Champ Consulting used the Porter Five Forces analysis framework to conduct a comprehensive and in-depth analysis of the industry competitiveness of the European market and assess the potential and difficulty of the market. Champ Consulting found that the European market has the following characteristics:

Supplier bargaining power: Supplier bargaining power is low because customers can purchase goods from domestic or other countries directly through cross-border e-commerce platforms, reducing dependence on suppliers and increasing competitive pressure on suppliers.

The buyer's bargaining power: the buyer's bargaining power is higher, because European consumers have higher consumption level and quality requirements, and have higher expectations and choices on the price, quality and service of goods, which increases the difficulty of competition for customers.

Existing competitors: There are many existing competitors, because the European market already has many mature cross-border e-commerce platforms, such as Amazon, Ebay, Alibaba, etc., these platforms have strong brand influence, technical advantages, and users. The base, channel resources, etc., constitute a greater competitive threat.

Potential entrants: There are fewer potential entrants, because the construction and operation of cross-border e-commerce platforms require more capital, manpower, technology and other resources, as well as complex laws and regulations, tax policies, customs supervision and other issues, increasing the difficulty and cost of market entry.

Substitutes: There are more substitutes, because European consumers can purchase goods through other ways, such as physical stores, local e-commerce platforms, social media, etc., which may be more in line with the consumption habits and preferences of European consumers and constitute a certain substitution threat.

Step 2: Select the appropriate market entry mode and path. According to the customer's own resources, capabilities, advantages and disadvantages, as well as the characteristics and requirements of the European market, Shangpu Consulting has formulated appropriate market entry strategies and plans for customers. Champ advises clients to adopt the following market entry models and paths:

Market entry mode: Champ Consulting recommends that customers use the direct export model to enter the European market. The advantage of direct export is that it can use customers' own expertise and experience in cross-border e-commerce platforms to provide convenient, fast and low-cost commodity trading services to meet the needs of European consumers for commodity diversity and price advantages. At the same time, direct exports can also avoid problems such as conflicts of interest or management difficulties with local partners. The disadvantage of direct export is that it needs to bear greater market risk and uncertainty, and needs to invest more resources and costs. Therefore, Shangpu Consulting recommends that customers pay attention to complying with local laws and regulations when exporting directly, optimize logistics and distribution, improve customer service, and enhance brand image. -Market entry path: Champ Consulting recommends that customers use the path of a follower strategy to enter the European market. The advantage of the follower strategy is that it can learn from the experience and lessons of the forerunner, avoid repeated mistakes and reduce market risk. At the same time, the follower strategy can also use the market development of the forerunner to attract and divert some consumers and expand market share. The disadvantage of the follower strategy is that it needs to face the competitive pressure of the forerunner, and it needs to find and create differentiated competitive advantages to improve market competitiveness. Therefore, Champ Consulting recommends that customers pay attention to analyzing and positioning target markets and target consumers when conducting follower strategies, providing goods and services that meet their needs and preferences, and creating a unique brand personality.

Step 3: Effectively execute the market entry plan and continuously optimize it. Champ Consulting assists the client in developing a viable market entry action plan and monitors and guides the client in implementing the plan. The action plan includes the following aspects:

Goal setting: Champ Consulting helps clients set clear and specific market entry goals, including time, location, product, market share, revenue, profit and other indicators, as well as the criteria and methods to measure the achievement of the goals.

Task decomposition: Shangpu Consulting helps customers break down the market entry goal into specific tasks, including market research, product development, brand promotion, channel construction, sales service and other links, as well as the specific content and steps of each link.

Responsibility allocation: Champ Consulting helps customers assign market entry tasks to corresponding responsible persons or teams, clarify the responsibilities and authorities of each responsible person or team, and the way of collaboration and communication with other responsible persons or teams.

Timing: Champ Consulting helps clients develop a reasonable market entry schedule, determining the start and end times of each task, as well as the order and relevance of each task to ensure the smooth implementation of the market entry plan.

Resource allocation: Shangpu Consulting helps customers reasonably allocate the resources required for market entry, including human resources, financial resources, material resources, information resources, etc., as well as the acquisition and use efficiency of resources to ensure the effective implementation of market entry plans.

Risk response: Champ Consulting helps customers identify and assess the risks that may be encountered in the process of market entry, including political risks, economic risks, social risks, technical risks, environmental risks, legal risks, etc., as well as the probability and impact of risks. And formulated corresponding risk response measures, including preventive measures, mitigation measures, transfer measures and emergency measures to reduce the impact of risks on market entry plans.

Consulting effect: Champ Consulting provides customers with professional and efficient market entry consulting services, helping customers successfully enter the European market and achieving good results. The customer's sales and market share in the European market have exceeded the expected target, the customer's brand awareness and influence have also been improved, and the customer has expressed a high degree of satisfaction and appreciation for the service of Shangpu Consulting.

Case 3: Shangpu Consulting provides market entry consulting services for a medical device company.

Customer background: The customer is a professional manufacturer of medical devices, the main products include pacemakers, artificial joints, hemodialysis machines. Customers already have a high level of technology and market share in the domestic market, but they have not yet formed a scale and influence in the international market. The customer hopes to use the development and innovation of the domestic medical device industry to enter the US market and expand overseas business.

Consulting objectives: to help clients analyze and evaluate the attractiveness and accessibility of the US market, to develop appropriate market entry models and paths for clients, and to assist clients in developing and implementing market entry plans.

Consultation Process:

Step 1: Accurately judge the attractiveness and accessibility of the market. Champ Consulting used the SWOT analysis framework to conduct a comprehensive and in-depth analysis of the opportunities, threats, strengths, and weaknesses of the U.S. market and assess the potential and difficulty of the market. Champ Consulting found that the U.S. market has the following characteristics:

Opportunity: The United States is the world's largest medical device market, with huge consumer demand and purchasing power. The U.S. medical device industry has a high level of technology and innovation capabilities, and continues to introduce new products and services to meet the needs of different consumers. The U.S. government has given greater policy support and capital investment to the medical device industry, which has promoted the development and growth of the industry.

Threat: The competition in the U.S. medical device industry is very fierce, and there are many strong competitors, such as Johnson & Johnson, Medtronic, Boston Scientific, etc. These competitors have strong brand influence, technical advantages, user base, channel resources, etc. Greater competitive pressure. At the same time, the US medical device industry is subject to strict laws and regulations, standards, and quality supervision, which increases the difficulty and cost of market access.

Advantages: Customers have a high technical level and professional experience in medical devices, and can provide high-quality, high-performance, high-value-added products to meet the quality requirements of American consumers for medical devices. At the same time, customers already have a high market share and brand awareness in the domestic market, and can use their successful experience and reputation in the domestic market to establish brand image and influence in the US market.

Disadvantages: Customers have not yet formed the scale and influence in the US market, lack of in-depth understanding and familiarity with the US market, and need to face the complex market environment and consumer demand. At the same time, customers have not established effective channels and partners in the U.S. market, and need to invest more resources and costs, and bear greater market risks and uncertainties.

Step 2: Select the appropriate market entry mode and path. According to the customer's own resources, capabilities, advantages, disadvantages, etc., as well as the characteristics and requirements of the US market, Shangpu Consulting has formulated appropriate market entry strategies and plans for customers. Champ advises clients to adopt the following market entry models and paths:

Market entry model: Champ Consulting recommends that customers use the distributor model to enter the U.S. market. The advantage of distributors is that they can use the resources and relationships of local distributors to enter the market quickly, reduce market access barriers, improve market awareness, increase market trust, and expand market share. At the same time, distributors can also provide customers with logistics and distribution, after-sales service, market research and other services to reduce the burden of customers and improve customer efficiency. The disadvantage of distributors is that they need to share profits with local distributors, which reduces the customer's profitability. At the same time, distributors may also have problems such as disloyalty or unprofessionalism to customer products. Therefore, Shangpu Consulting recommends that when choosing a distributor, customers should pay attention to their background, reputation, business conditions, strategic goals, etc., choose distributors that have common interests and visions with them, and clarify the rights and rights of both parties in the contract. Obligations.

Market entry path: Champ Consulting recommends that customers use the path of backwardness to enter the U.S. market. The advantage of latecomer advantage is that it can take advantage of the market space and consumer demand that the forerunner has opened up to provide better or cheaper products or services, attract and divert some consumers, and expand market share. At the same time, the advantage of backwardness can also use its own technological innovation capabilities to provide more advanced or more suitable products or services for consumer needs, and improve market competitiveness. The disadvantage of the late-mover advantage is that it needs to face the competitive pressure of the forerunner, and it needs to find and create differentiated competitive advantages to improve market competitiveness. Therefore, Shangpu Consulting recommends that customers pay attention to analyzing and positioning the target market and target consumers when carrying out the late-mover advantage strategy, providing products and services that meet their needs and preferences, and creating a unique brand personality.

Step 3: Effectively execute the market entry plan and continuously optimize it. Champ Consulting assists the client in developing a viable market entry action plan and monitors and guides the client in implementing the plan. The action plan includes the following aspects:

Goal setting: Champ Consulting helps clients set clear and specific market entry goals, including time, location, product, market share, revenue, profit and other indicators, as well as the criteria and methods to measure the achievement of the goals.

Task decomposition: Shangpu Consulting helps customers break down the market entry goal into specific tasks, including market research, product development, brand promotion, channel construction, sales service and other links, as well as the specific content and steps of each link.

Responsibility allocation: Champ Consulting helps customers assign market entry tasks to corresponding responsible persons or teams, clarify the responsibilities and authorities of each responsible person or team, and the way of collaboration and communication with other responsible persons or teams.

Timing: Champ Consulting helps clients develop a reasonable market entry schedule, determining the start and end times of each task, as well as the order and relevance of each task to ensure the smooth implementation of the market entry plan.

Resource allocation: Shangpu Consulting helps customers reasonably allocate the resources required for market entry, including human resources, financial resources, material resources, information resources, etc., as well as the acquisition and use efficiency of resources to ensure the effective implementation of market entry plans.

Risk response: Champ Consulting helps customers identify and assess the risks that may be encountered in the process of market entry, including political risks, economic risks, social risks, technical risks, environmental risks, legal risks, etc., as well as the probability and impact of risks. And formulated corresponding risk response measures, including preventive measures, mitigation measures, transfer measures and emergency measures to reduce the impact of risks on market entry plans.

Consulting effect: Champ Consulting provides customers with professional and efficient market entry consulting services, helping customers successfully enter the US market and achieving good results. The customer's sales and market share in the US market have exceeded the expected target, and the customer's brand awareness and influence have also been improved. The customer has expressed high satisfaction and appreciation for the service of Shangpu Consulting.

Conclusion

Market entry consulting is a complex and arduous task. It requires consulting companies to use innovative thinking and methods to solve the three major problems encountered in the process of market entry: how to accurately judge the attractiveness and accessibility of the market; how to choose the right Market entry mode and path; how to effectively implement the market entry plan and continue to optimize. Taking Shangpu Consulting as an example, this paper introduces the innovative thinking and methods adopted by consulting companies in solving these three major problems, including: using multi-dimensional analysis framework, combining quantitative and qualitative data, comprehensively evaluating market potential and obstacles; using competitive advantage analysis, combining customer resources and capabilities, tailoring market entry strategies; using project management tools, combining customer organization and culture, to formulate feasible market entry action plans. This paper also provides specific cases of market entry consulting services provided by Shangpu Consulting for an auto parts company, an e-commerce platform and a medical device company, and shows the application effect of the consulting company's innovative thinking in practice.