We’re happy to have guest author Mike Shanley, Founder & CEO of Konektid International, sharing his wisdom on entering emerging markets. Mike has more than a decade of experience leading business development and project management activities across five continents. He has designed and managed projects of up to $30 million for governments, businesses, and civil society organizations, in more than 25 emerging markets. We could not be happier to get the opportunity to pick his brain on such a hot topic. We’ll let Mike take it from here.
What is Konektid’s approach?
“Simplify going global by identifying and accessing opportunities while mitigating risk.”
Every business knows that the fastest growing markets in the world are emerging markets like India, Kenya, and Colombia. However, many businesses shy away from these regions because of the real and perceived barriers to entry and then miss out on the business opportunity there. At Konektid, we simplify the global market entry process by helping our clients identify and access opportunities in emerging markets, while mitigating risk. We design and implement global business strategies that are based on local insight from our global team in more than 60 countries.
We often see companies making these three common mistakes when entering emerging markets:
1. Only one local partner
Companies will often operate through a single local partner in a key market. This gives that partner significant leverage in the target market. To avoid this, it is important to have a diverse network of local partners and stakeholders.
2. Did not localize business model
Many companies assume that what worked in one market will work in another, and do not localize their business model. Localization goes beyond translation to include full customization of your product or service to the local market.
3. Leaving money on the table
Governments and multilateral banks invest $150 billion into developing opportunities in emerging markets every year. Too often, businesses see these investments as charity and not a business opportunity, so they miss out on leveraging these resources to accelerate their market entry process. At Konektid we help our clients access this non-dilutive capital to decrease risk when entering a new market. These capital opportunities are a cornerstone of our new emerging markets entry model.
What is unique about Konektid’s market entry approach?
What makes our global business model unique is our team’s ability to leverage international market development investments to accelerate our clients’ growth in emerging markets. We know how to leverage both the financial resources, as well as established relationships, of governments and multi-lateral banks to build the foundation for long-term growth in emerging markets. If you keep all of these points in mind, as well as avoiding those three common mistakes, you will be well on your way to a successful entry into your targeted emerging market.
Where does Velocity Global fit in the process?
It is important to have a partner like Velocity Global. They can help you navigate the operations and human resource challenges in emerging markets. Velocity Global can help decrease the risk of compliance issues, expedite the hiring process for good talent, and increase flexibility well beyond what is possible when creating a foreign subsidiary. There are many times when we recommend that our clients create companies in the market they are going into, but there are also many times when agility and service-oriented structure can make success far less risky.
Thank you for reading!
Founder & CEO
Thanks for reading, we hope you enjoyed the wisdom of Mike as much as we did. We will continue this series with more articles about specifics in the best emerging markets around the world.
Do you have more questions about how best to enter emerging markets? We are always happy to start a conversation and can get Mike involved as well. Contact us here!