Growing a company across Europe can be a costly and often challenging strategy. When a company is looking for investment to build in new territories, it is critical to thoroughly investigate the companies strategy and their understanding of the new region, stress test the expansion strategy and review the execution plan during digital due diligence.
During international due diligence, the first question should always be:
"Has the company reached its ceiling of growth in its home territory - exploited all the opportunities and spending to capacity, without ROI or KPI's being affected?"
If still opportunity, should the company not be focusing on this area of growth?
Always interrogate the above question, once you have the answer to this, it is time to go deeper.
Initially, this article will be looking at European Expansion, the initial questions to answer during Digital Due Diligence.
If a UK based company and looking to expand in new territories within Europe several vital questions to answer
1: Does the company already have a footprint in the market?
2: Traffic levels and awareness in markets?
3: Have they researched to understand the market and customer, including the digital landscape of the country?.
4: Competitors- who are they and what are they currently doing in the market?
5: Have they a clear and defined difference to the competition?
6: Initial test strategy, have they got initial results and do they have an MVP ready to launch in the market?
7: Can they support the customers - language and customer service?
8: Are there more accessible options for growth? Have the maximised all opportunities in current markets?
9: Do they have the resource and team to roll out the new markets?
10: Have they fully budgeted the plans - including additional logistical costs?
11: What happens if the market takes off once, can they support this alongside their other business?
International Marketing
Digital marketing in different countries can vary significantly. Google still dominates the European market for search alongside the significant social media networks; Facebook, Instagram and Youtube. Various other platforms such as Snapchat have substantial footprints in the Nordic countries, and new channels like TikTok is fast becoming a significant focus for targeting a younger audience.
1: Which are the key growth channels - Do they have any particular localised social media or digital channels which are to be focused?
2: Vertical review - is this a category exists, does the customer have a want for it (they should, of course, need it) If so who is servicing this and what is the company difference and opportunity?
3: Does the company have a clear strategy for building awareness, converting and retaining customers?
4: Have they considered differences in local markets. If so, what are these, and how is the company addressing them?
5: Local agency vs, Global agency support - what is their plan?
6: Local marketing team, or will they be executing the strategy from HQ?
7: Have they localised the product?
8: Competitors - how are they marketing?
9: Customer trust - how are they going to build this in a new market?
Growing a business in a new market is achievable, and it gives the opportunity to rapidly grow revenue and if done correctly increase the company value significantly.
However, when investing, you must understand both the opportunities and challenges which might occur. We can help you fully realise the potential, and ensure that the business plan has been stress tested, ensure the investment has a structured strategy and the team and resource needed to execute on it.
Contact Simon directly here to discuss further