Satellite view of Dubai’s iconic shoreline
Which Markets Are A Good Fit?
Many of the questions that my colleagues and I often get from enterprise clients about to expand internationally concern how to evaluate which prospective market(s) to choose. Clients’ primary concerns are typically about market economics — demand and size/growth rates followed by regulatory issues. But, other issues ought to be factored into their calculations as well.
We’ve identified five determinants that influence new market development in varying degrees depending on the type of product/service set and business model:
- Human capital: Availability of skilled workers, centers of institutional learning, robust and flexible labor market, and fair labor practices.
- Capital and deal flow: Volume and velocity of capital and deal flow, depth and vitality of industry clusters, and rising economic output.
- Business environment: Political stability, rule of law coupled with regulations that protect investors and foster a competitive business climate.
- Infrastructure: Transportation, information and communications technology (ICT), and office/building infrastructures, along with a meaningful focus on environmental sustainability.
- Quality factors: Cultural diversity and quality of life.
If you’d like to learn more about evaluating prospective markets, please get in touch.