3 Considerations for U.S. Market Entry and Distribution
Posted by Seraj A. Farooqui on Wed, Aug 17, 2011 @ 10:51 AM
The World Is Flat: A Brief History of the Twenty-First Century is an international bestselling commentary by Thomas Friedman that analyzes globalization within the 21st century. Freidman argues that events such as the collapse of the Berlin Wall and technologies like the Internet have “flattened” the world and made it easier for entrepreneurs to experience a “level playing field” when entering foreign markets.
But does this “level playing field” guarantee success? Expanding into the U.S. market requires significant investment, planning, rationale, and patience. Here are 3 considerations to take before taking the leap:
1. International expansion requires an early vision
A pro-active approach helps establish the framework within management for market expansion, and cascades through supply chain modeling.
2. International expansion requires thorough financial analysis
An expansion strategy must fit into a firm’s financial goals. What are the costs involved? Is it necessary to expand into the United States to achieve growth?
3. International expansion requires industry analysis
What is the competition doing? Are local allies needed to build competitive advantage in the U.S. market?
Cooperative agreements with third party logistics providers within the United States can help strengthen competitiveness and optimize product distribution. All physical goods and packages entering the U.S. require extensive logistics planning and oversight and must also be cleared by Customs. Due to the complexities of these processes, a 3PL partnership that manages the transportation, warehousing, distribution, and e-commerce, is the optimal method to logistically support U.S. market entry.
What other elements must be considered prior to U.S. market entry?
Photo By: Newport Geographic
