www.pwc.com

11 May 2017

Foreign market entry strategies - How the big companies do it!

Igor Šiškin Stuart Browne Sunil Sharma Jure Tomc Magda Kwoska

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Agenda

Introduction

Foreign market entry – PwC framework

Panel discussion

PwC Slovenia •

Questions and answers

PwC’s global network of more than 200,000 people makes us well-placed to advise clients on pressing business issues

157 Countries represented US$35.9

billion FY15/16 total revenue 743

Offices & locations worldwide 223,468 people

of which 40% are working in developing new markets

58,081 people New joiners in 2016

3 PwC Slovenia •

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Introduction

Today questions:

Is there an ultimate strategy for entering new markets?

What are the key components to a great strategy?

What are the key considerations you should be aware of when entering a new market?

PwC Slovenia •

Each markets have its own intrinsic complexity and many organisations have struggled to initially succeed!

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Airtel in Africa

Walmart in Brazil

Some organisations that initially neglected to understand unique local needs and failed:

PwC Slovenia •

McDonald‘s in India

A framework for growth in new markets

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Market potential

Customer segmentation

Product / service and pricing

Channel

Operating processes

Supply chains Investment roadmap and partnerships

Leadership, talent and governance

Cultural capital

Regulation and tax structure

Institutional landscape

Country & strategic risk

PwC Slovenia •

Some opportunity areas for growth

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Regulation & tax structure Institutional landscape Country &

strategic risk

1. Understand the political and economic risks in the new market

1. Understand the various legislative and judicial risks in the country

1. Understand the regulations and taxations for foreign investors

Market potential Customer segmentation Product and pricing

1. Estimate the opportunity size based on assessing the relevant markets for our products and services

1.  Identify target customer segments based on volume and purchase behaviour (income/ geography/culture or need)

1.  Identify the core need of the target segment and modify the existing product suite to address that need

Business Environment

Value Proposition

PwC Slovenia •

Using the framework here are some opportunity areas for growth

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Investment roadmap & partnership

Leadership, talent & governance Cultural capital

1. Understand the local cultural norms and institutionalise an appropriate culture in the team

1.  Identify partners or acquisition targets to strengthen our value proposition and build capabilities in new markets

1.  Identify skills to succeed in a new market

2. Identify, develop and build the leadership and team

Channel Operating process Supply chain

1. Develop the channel strategy to effectively and optimally reach the target customer segments

1.  Identify which business /operating processes need to be imported and which should be localised

2.  Benchmark the business functions with local best practices

1. Develop a strategic, tactical and operational framework to manage and optimise the supply chain

Operating Model

Financial and Human Capital

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Potential goals for each stage of the framework

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A. Understand business

environments

B. Set tailored growth targets

D. Enable sustainable

growth

C. Customise and optimise capabilities

PwC Slovenia •

www.pwc.com

11 May 2017

Foreign market entry strategies - How the big companies do it!

Igor Šiškin Stuart Browne Sunil Sharma Jure Tomc Magda Kwoska