Iran 2015: To maximise market share companies will need an effective market entry strategy

Market dynamics are constantly changing and it is essential that companies understand the impact that these will have on their business. One topical example of how markets change are the new opportunities and threats presented by Iran.

Iran is the world’s 18th largest economy in purchasing power parity terms, with a population that now exceeds 80m, the second biggest stock exchange in the Middle East and well-educated citizens. There are now signs that the crisis involving Tehran’s nuclear ambitions might soon be resolved. This will lead to many of the sanctions that have isolated Iran and have crippled its economy being lifted. When this happens, “the world will flood in” (Wendy Sherman, US Chief Negotiator with Iran).

To take full advantage when new events like this occur, custom research can be used to significantly strengthen a market entry strategy, as well as helping to identify new challenges to an existing business plan. This is essential because changing market dynamics create business threats as well as opportunities which need to be understood and explored.

Milner uses a highly structured approach to help companies create a logical and well-founded market entry strategy:

 

 

Research-based analysis helps to inform a wide range of market strategy components. We recognise that every client has different needs and objectives, different resources and sets of existing information, and of course different appetites for risk. Clients therefore tend to focus on those sets of components that are central to their specific strategic needs. Having an informed strategy means that the company will have first-mover market advantage and will not waste time and resources targeting the wrong areas of the market.

Our approach to market entry groups these components into four broad areas:

1. Market Analysis:
   Wide-ranging analysis of core target market based mostly on comprehensive secondary sources

2. Market Characterisation and Sizing:
   Quantitative and qualitative analysis of markets, customers and products, as well as market development scenario analysis

3. Options and Prioritisation:
   Detailed planning work including competitor analysis, revenue modelling, and channels to market

4. Tactical and Strategic Options:
   Including pricing, development roadmaps, and success tracking

In the context of new and complex markets such as Iran, we help clients avoid the pitfalls while positioning their business for success. We can also help choose between alternative new markets or to prioritise specific market objectives by providing:

• Tailored country analysis in the context of a client’s specific business sector
• Considering the broader market, economic and regulatory risks of entering a large but unknown economy
• Strategic thinking as to how business results will be impacted going forward, including well-structured risk analysis
• Purpose-built market development scenarios to capture potential impacts on a client’s business
• Evaluation of opportunities to grow market share
• New market models and trade forecasts

And in all cases, we provide clear and actionable recommendations.

If you’d like to find out more about how custom research can benefit your business, please contact Phil Todd at phil.todd@milnerltd.com or on +44 (0)7968 118468.

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