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Identifying Risks in Emerging Market Entry PPT


This PPT slide, part of the 39-slide Market Entry Assessment Guide PowerPoint presentation, outlines inherent risks associated with entering emerging markets, categorized into macroeconomic factors, microeconomic factors, and internal factors. Each category highlights specific challenges that businesses may face, along with practical examples illustrating these issues.

Under macroeconomic factors, elements like political situations, economic conditions, and legal systems are emphasized. Changes in these areas can significantly impact market entry strategies. For instance, a volatile political climate may lead to unpredictable regulations, affecting operational stability.

Microeconomic factors focus on competition, crime, and environmental issues. These factors can create barriers to entry, such as difficulties in obtaining distributor licenses or navigating local customs regulations. The examples provided, such as frequent disputes over customs valuation in India, underscore the complexities of local market dynamics.

Internal factors highlight the importance of thorough planning and analysis. Issues like poorly developed business plans or inadequate control over supply chains can lead to operational inefficiencies. The slide points out that marketing and sales issues, along with reliance on local service providers, can further complicate market entry.

Overall, this slide serves as a cautionary overview for potential clients considering expansion into emerging markets. It emphasizes the necessity of understanding both external and internal challenges to mitigate risks effectively. The practical examples provide a clear context for each risk, making it evident that careful assessment and strategic planning are crucial for success in these environments.




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Emerging Market Entry Cognitive Bias Market Entry Strategic Planning Supply Chain Business Plans Sales

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