Market Assessment of Developing Economy
Updated: May 21, 2020
When the growth, within home grounds, starts to flatten, then the necessity to turn head towards global expansion became an obvious next step for thriving businesses. Developing countries commanding the world’s highest population share, India and China (with a population base of ~17% each), are the most sought-after destinations for business expansion beyond home grounds, where businesses are interested to have their footprint.
In India, rapid infrastructure development, changes in government policies regarding international trade and exchanges and infrastructure accreditation frameworks, had garnered immense business interest within infrastructure consulting and building automation space. Though there were a few functional domestic players, most needs of the building automation industry remained unfulfilled. The challenge for a global market leader, to enter one such market, was to better understand the size of market need, gap, and affordability.
Indian infrastructure industry has largely been unorganized, which made it necessary to conduct an in-depth initial assessment, challenges faced and the opportunity size it offers.
The analysis was done by dividing study between five major infrastructure segments vis-à-vis hospital, higher education, commercial, data center, and hospitality
The procurement and supply chain, for such a distributed country, required in-depth geographical understanding and business hot-spot identification.
Primary research through executive interviews, of decision-makers and decision influencers, was done to gather the analytical insights, gap analysis and product-market fit determination for the market on interest.
Secondary research focused on identifying most talked about areas of concern, available alternative solutions and upcoming changes in the industry.
Identifying the key stakeholders in the value chain of the industry and organize them.
Identifying the six key vulnerable components of business, market and formulate a strategy to proactively overcome challenges.
Defining product-problem fit for identified challenges and establishing it as a market-fit product.
Alignment of business with the policies laid down by the government.
Exploring all the possible options to indulge in a strategic partnership or alliance with the domestic companies, driving distribution and/or consumption, to have faster and robust access to the local market.
All six vulnerabilities were dealt with efficiently identifying product-market fit from the existing product portfolio.
Identification of key stakeholders, across the value chain, and industry problems helped in better market positioning and aided in speedy decision-making for procurement.
Identification of the right market segment with known product-problem mix helped to define the target segment and to attain a unique market positioning.