The Handbook of Market Intelligence: Understand, Compete and Grow in Global Markets, 2nd Edition

Chapter 1Market Intelligence: Drivers and Benefits

UNDERSTAND, COMPETE AND GROW – THE DECISION-MAKER’S CHALLENGE

ANOTHER DECISION AHEAD

On another busy morning in a large international apparel company, two executives are sitting in a meeting room, having agreed on a planning session in preparation for the upcoming strategic planning workshop. Their challenge is to come up with a preliminary market entry strategy to Brazil that seems to provide lucrative business opportunities among the growing middle class population. Indeed some of the company’s competitors have already established a presence in Latin American countries, with varying degrees of success.

Knowing the complications of the task ahead, the executives have decided to first compile a list of questions that they will need an answer to before they can formulate a market entry strategy. Who are the potential customers; what are the demographics, and how does the local culture shape the habits and preferences of people with regards to clothing? Where does the competition come from, and are the competitors making money? What about the local legislation and interest groups; who are the local players that should be taken into account? What are the primary trends affecting local consumer behavior, and how vulnerable is the market to economic or political disruptions? How differentiated should the market entry strategies be for different countries in Latin America? And the list goes on.

The questions to strategic decision-makers ...