5 Things multinationals with successful market entries get right
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1. BE DELIBERATE
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Choose wisely and take country complexity into account.
Example: The allure of India’s large population, fast growth, and relative wealth is attractive to many Western companies, but its high complexity has led to high-profile retreats, such as Walmart and GM.
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2. PACK LIGHTLY
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Minimize risk by ensuring an easy exit is feasible. Carefully consider the mode of entry and selection of the market.
Example: in Bulgaria, Uber kicked‐off operations within weeks with only two employees running the local operation. When faced with prohibitive regulatory complexity, Uber cut losses and made a swift exit.
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3. BYPASS THE CONGESTION
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Bypassing traditional channels and going direct may be successful in countries with high Market and Operational Complexity.
Example: Companies like Amway have entered and grown quickly in complex countries. Their salesforce swiftly expands into rural areas and bypasses negotiations with local distribution channels.
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4. ESTABLISH AN AWAY BASE
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Start with one of the small jewels, and use it as a platform for regional coverage.
Example: Small countries have inherent advantages—less diversity in consumer tastes, concentrated populations in urban areas, and fewer challenges transporting products. In places like Hong Kong and Singapore, those advantages have been amplified by consistently applied, business‐friendly regulatory models.
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5. TAKE A MAP
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Moving from low- to high-complexity groups requires new skills and resources.
Example: IKEA’s expansion, while gradual, is noteworthy for how it follows the GMCI roadmap.
IKEA'S EXPANSION PATH FOLLOWS GMCI GROUPINGS
