Emerging economies now drive 59% of global GDP growth, with markets like India, Indonesia, and Nigeria reshaping the global economic order. But these opportunities come with a complexity that global brands often underestimate. Success depends on navigating fragmented data systems, informal economies, and fast-changing consumer behaviour.

Digital adoption is one of the most transformative forces in these regions. Sub-Saharan Africa’s internet penetration, for instance, is growing at 23% annually—outpacing many developed markets, according to the World Bank. This growth opens vast new consumer bases but also demands a deeper understanding of local dynamics, where cultural and economic factors vary even within individual countries.

Traditional market analysis falls short in these settings. Established methods often miss the realities of unstructured data and regulatory shifts. In these unpredictable ecosystems, innovation is not just an advantage—it’s a necessity for brands that want to thrive.

The Landscape of Emerging Economies

Emerging economies, often defined by their rapid industrialisation and growing middle classes, are increasingly driving global economic activity. According to the United Nations Conference on Trade and Development (UNCTAD), these markets accounted for 54% of global foreign direct investment inflows, underscoring their attractiveness to international investors.

What sets these economies apart is their high growth potential, fueled by urbanisation, expanding labour forces, and technological adoption. India is on track to surpass Germany as the world’s fourth-largest economy by 2027, powered by a digital revolution that has brought over 700 million people online. Brazil remains a linchpin in global agriculture, supplying essential commodities like soybeans and coffee to sustain global supply chains.

Yet, growth in these economies comes with hurdles. Regulatory environments often shift rapidly to keep pace with economic changes. In Nigeria, efforts to diversify beyond oil have fostered a thriving fintech sector, now attracting nearly a quarter of Africa’s venture capital funding. Indonesia, Southeast Asia’s largest economy, has capitalised on its demographic advantage—65% of its population is of working age—to expand its manufacturing and services industries.

Consumer diversity adds another layer of complexity. By 2030, McKinsey estimates that 1.4 billion people in emerging markets will join the middle class, transforming consumption patterns. However, these consumers vary widely in preferences, shaped by cultural traditions, income disparities, and unequal access to technology.

The interplay of rapid growth, evolving regulations, and consumer diversity makes emerging markets both an opportunity and a challenge. Navigating these landscapes requires businesses to adapt their strategies with precision and agility.

Challenges in Conducting Market Analysis

Data Accessibility and Quality

In many emerging economies, reliable data remains elusive. Only 15% of countries in sub-Saharan Africa conduct regular household surveys, leaving brands to navigate blind spots in understanding consumer behaviour and economic trends. To bridge these gaps, companies are turning to alternative methods like satellite imagery to estimate agricultural yields and AI-driven tools to analyze social media sentiment.

These technologies offer promising solutions but come with limitations. Satellite data can provide high-level insights but lacks the granularity needed for local market decisions. Similarly, AI tools often rely on digital footprints, which may underrepresent rural or offline populations, creating an incomplete picture. Bridging these gaps requires not only technological innovation but also localised research to ground findings in reality.

Local Nuances and Cultural Complexity

Cultural, linguistic, and regional differences across emerging economies pose significant challenges. Markets like India, for instance, are not monolithic; purchasing behaviours in urban Delhi differ drastically from those in rural Maharashtra. Failure to recognise such nuances can lead to costly missteps.

Consider the case of a global fast-food chain attempting to enter the Indian market. Its initial menu offerings largely ignored vegetarian preferences and regional tastes, leading to underwhelming sales. Only after revamping its menu to include paneer-based items and more vegetarian options did it see success.

Local partnerships can play a crucial role here. Partnering with local firms or cultural experts grounds strategies in local realities, minimising cultural missteps.

Rapidly Evolving Consumer Behaviour

The pace of change in emerging markets is unparalleled. Urbanisation and digital adoption are driving rapid shifts in how consumers engage with brands. For example, Indonesia has seen a 32% increase in e-commerce sales year-over-year, driven by a growing middle class and smartphone penetration.

These shifts, while promising, complicate long-term predictions. Trends can emerge and fade faster than companies can adapt. A product that thrives in one year might lose relevance the next as consumer preferences evolve. To mitigate this, companies are leveraging predictive analytics and real-time monitoring to stay ahead of emerging trends.

Regulatory and Economic Instability

The regulatory landscape in emerging economies is often in flux. Tariffs, trade policies, and tax structures can change overnight, leaving businesses scrambling to adjust. In 2021, Nigeria’s sudden ban on Twitter disrupted digital marketing plans for numerous brands, illustrating the risks of relying on volatile platforms or policies.

Economic instability, including currency fluctuations, adds another layer of unpredictability. Argentina’s inflation rate, for instance, exceeded 100% in 2023, making it difficult for companies to maintain consistent pricing strategies.

To manage these challenges, brands are incorporating contingency planning into their market analysis. Diversifying supply chains, hedging against currency risks, and building agile operations are becoming standard practices for those operating in these unpredictable environments.

Opportunities: Leveraging Emerging Market Potential

The Power of First-Mover Advantage

Coca-Cola’s investment in sub-Saharan Africa during the 1990s highlights the rewards of entering emerging markets early. By building local bottling plants and distribution networks, the company secured its dominance, leaving late-arriving competitors struggling to catch up.

Identifying similar opportunities today requires advanced tools like predictive analytics to track demographic shifts, urbanisation, and emerging consumer trends. Data from international organisations such as the IMF and localised surveys provide the insights necessary for decisive action.

Harnessing Local Partnerships

Collaborating with local businesses is another key to success. Unilever’s expansion in India illustrates this approach. By working with regional distributors and offering sachet-sized product packaging tailored to price-sensitive consumers, Unilever extended its reach into rural areas where global brands often faltered.

Procter & Gamble’s success in Vietnam offers another example. By tailoring its supply chain to the country’s fragmented retail sector, P&G ensured its products were widely available, reinforcing brand loyalty among consumers.

Tech-Driven Insights

In regions where traditional data collection methods fall short, technology is filling the gap. AI and machine learning are helping brands analyze massive datasets, uncover patterns, and make real-time decisions. For example, mobile data in Africa has become a critical resource for understanding consumer behaviour, with telecom companies providing anonymised insights to brands.

E-commerce platforms are also reshaping how brands gather intelligence. In Indonesia, where 68% of the population is active on social media, companies monitor conversations to refine products and marketing strategies. Platforms like India’s Flipkart and Southeast Asia’s Shopee reveal regional purchasing trends, helping brands identify emerging opportunities with precision.

Advanced Techniques for Effective Market Analysis

Granular Segmentation and Personalisation

In emerging markets, broad demographic categories often fail to capture the intricacies of consumer behaviour. Effective market analysis requires breaking down populations into more actionable segments, considering factors such as income brackets, urban versus rural distinctions, and cultural influences. For instance, in India, the rural affluent consumer—a group often overlooked in global strategies—represents a significant portion of the purchasing power outside metropolitan areas.

Creating accurate consumer personas tailored to these nuanced segments involves leveraging regional and behavioural data. Platforms like Tableau and Statista provide businesses with tools to analyse trends at a granular level, from age-specific purchasing patterns to localised preferences. For instance, a consumer persona for Brazil’s northeastern region may differ substantially from that of São Paulo due to disparities in income levels and product accessibility.

Personalisation, driven by this segmentation, is key to gaining consumer trust. Brands like Spotify have succeeded in emerging markets by tailoring their offerings, such as creating locally relevant playlists and price tiers that cater to diverse income groups.

Predictive Analytics and Scenario Modeling

The dynamic nature of emerging economies makes it essential for businesses to anticipate trends and prepare for uncertainties. Predictive analytics uses machine learning and advanced statistical techniques to identify potential future scenarios, helping companies refine their strategies.

For example, platforms like SAS and IBM Watson enable businesses to model scenarios such as currency fluctuations, supply chain disruptions, or sudden policy changes. When Nigeria introduced a ban on certain imports in 2020, companies that had prepared alternative sourcing strategies using scenario modelling were able to adapt quickly, avoiding significant losses.

This proactive approach also allows businesses to stay ahead of emerging consumer trends. In Indonesia, predictive tools have been used to track the growth of the online grocery market, enabling companies to invest in logistics infrastructure ahead of competitors.

Incorporating Human-Centered Design

Emerging markets often include underserved segments whose needs are not met by mainstream products. Human-centered design (HCD) bridges this gap by placing consumers at the heart of product development. Ethnographic research—a key component of HCD—focuses on observing and understanding consumer behaviour in real-life contexts, providing insights that quantitative data might miss.

For instance, Unilever’s development of low-cost, single-use shampoo sachets in India was inspired by observing how consumers in rural areas managed tight household budgets. Similarly, Procter & Gamble’s design of water purification packets addressed the lack of clean drinking water in underserved African communities, creating a product that was both impactful and profitable.

By focusing on practical, locally relevant solutions, human-centred design not only improves product adoption but also fosters a deeper connection between brands and consumers.

Case Studies: Success and Lessons Learned

Success Story: Xiaomi’s Rise in India

Xiaomi’s entry into India showcases the power of understanding local markets. By tailoring its smartphones to balance affordability with premium features, Xiaomi tapped into the price-sensitive demands of Indian consumers. Partnering with e-commerce platforms like Flipkart, it leveraged flash sales to create buzz and drive demand. Today, Xiaomi dominates India’s mid-range smartphone market, outperforming established competitors such as Samsung.

Success Story: Grab’s Southeast Asia Expansion

Grab’s success across Southeast Asia highlights the value of adapting to regional realities. Recognising the prevalence of motorcycles over cars, Grab prioritised motorbike ride-hailing in countries like Vietnam and Indonesia. It also integrated cash payments to accommodate regions with low credit card penetration. By combining local partnerships with agile strategies, Grab became a dominant player in the region’s ride-hailing and food delivery markets.

Lesson Learned: Walmart’s Struggles in South Korea

Walmart’s failure in South Korea underscores the risks of applying global strategies without considering local consumer behaviour. By focusing on bulk purchases and low prices, Walmart overlooked cultural preferences for smaller, frequent shopping trips and premium local products. Competing against entrenched local retailers like E-Mart, Walmart exited the market in 2006, having failed to adapt its approach to meet South Korean expectations.

Takeaway

These examples reveal a common thread: success in emerging markets hinges on deep local insight and adaptability. Whether through tailored product offerings, strategic partnerships, or cultural sensitivity, companies that invest in understanding regional realities gain a decisive edge. Conversely, missteps like Walmart’s serve as a cautionary tale of the pitfalls of imposing one-size-fits-all strategies on diverse markets.

Practical Framework: Building a Market Analysis Toolkit

1. Grounded Local Insights

Effective market analysis begins with deep local insights. In countries like Indonesia, where consumer preferences vary sharply between urban and rural areas, on-the-ground research is non-negotiable. Partnering with local market research agencies can transform broad observations into actionable strategies, helping brands tailor products and campaigns to specific demographics. For instance, understanding that rural consumers prioritise affordability while urban buyers value convenience can shape product pricing and distribution strategies.

2. Hybrid Methodologies for a Complete Picture

A blend of quantitative and qualitative research provides a clearer view of emerging markets. Large-scale surveys and sales data reveal trends, but qualitative methods like focus groups and ethnographic studies add context to the numbers. For example, in Vietnam’s e-commerce sector, surveys may highlight the growth in online shopping, but interviews can reveal trust issues with digital payment platforms—critical insights for building effective strategies. Collaborating with agencies that specialise in these hybrid approaches ensures a balanced and comprehensive analysis.

3. Adapting Global Strategies to Local Realities

Global strategies rarely succeed without local adaptation. Products designed for Western markets often fail in regions where cultural expectations and economic realities differ. In Southeast Asia, for instance, durable, affordable goods resonate more than premium branding. Partnering with local distributors or cultural experts ensures that global visions align with regional needs, whether through modified packaging, pricing adjustments, or localised marketing campaigns.

4. Continuous Monitoring and Agile Adjustments

Emerging markets evolve rapidly, making real-time monitoring essential. Trends like the rise of digital wallets in India or live-stream shopping in China require businesses to adapt quickly or risk irrelevance. Regular data collection, combined with ongoing analysis, allows brands to refine strategies as conditions change. Partnering with agencies for market monitoring services can help brands stay ahead of these shifts and capitalise on new opportunities as they arise.

Bottom Line

In emerging markets, the key to success lies in preparation and adaptability. Companies that invest in granular research, hybrid methodologies, and real-time strategy adjustments position themselves to navigate complexity and drive growth. Without these tools, businesses risk being outpaced by competitors who better understand the local landscape.

The Future of Market Analysis in Emerging Economies

As digital infrastructure connects billions of people in emerging markets, these regions are poised to reshape global business. Expanded mobile and internet access is unlocking new consumer bases and accelerating innovation. For instance, the GSMA predicts that by 2025, more than 60% of sub-Saharan Africa will have mobile internet access, driving demand for digital services and e-commerce.

However, the rapid pace of change means businesses face a critical choice: adapt or risk irrelevance. Success in these markets will depend on striking the right balance—leveraging global expertise while remaining deeply attuned to local realities. Agility, investment in data-driven tools, and partnerships with regional experts will be essential.

The next decade will belong to companies that can seamlessly integrate global strategies with localised execution. Emerging economies are more than growth opportunities; they are the proving grounds for businesses to test innovation, refine strategies, and lead in an interconnected world.

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Establishing a global brand is complex. Companies looking to expand internationally must contend with significant challenges, including varying consumer behaviours, cultural differences, and economic disparities. These factors make maintaining a consistent brand identity complicated while adapting to local demands. However, the rewards for getting it right are substantial. Brands that successfully navigate these complexities can tap into new markets, increase their global presence, and achieve sustained growth.

Understanding Local Market Dynamics

Successfully expanding into a new market requires more than just introducing an existing product or service to a different audience. This requires a deep understanding of the local environment, where cultural nuances, consumer behaviour, and economic factors are crucial for a brand’s success. Brands that fail to consider these elements often struggle to gain traction because what works in one region may not translate effectively to another.

Take McDonald’s as an example. The fast-food giant’s success in markets like India highlights the importance of adapting to local tastes and preferences. Recognising that much of the population avoids beef, McDonald’s reimagined its menu, introducing vegetarian options like the McAloo Tikki, a potato-based burger that quickly became a local favourite. This adaptation wasn’t a simple change; it resulted from extensive market research that provided insights into local dietary habits, preferences, and cultural sensitivities. By leveraging this in-depth understanding of the Indian market, McDonald’s maintained its brand identity while catering to local tastes, leading to its widespread acceptance and success in the region.

Image credit: McDonald’s blog

Adapting Global Strategy to Regional Needs

Maintaining a global identity while adapting to regional markets is a delicate balancing act. Brands must ensure their core values and messaging remain consistent across all markets. Yet, they must also be flexible enough to meet the specific needs and preferences of local consumers. This balance is crucial for sustaining a coherent brand image while being relevant in diverse regions.

Coca-Cola exemplifies how a global brand can achieve this balance. The company has consistently maintained its brand identity through its iconic logo, packaging, and overarching messaging centred around happiness and togetherness. 

However, Coca-Cola also customises its marketing strategies to resonate with local audiences. In Japan, for instance, Coca-Cola introduced a range of products that cater specifically to Japanese tastes, such as green tea-flavoured beverages and smaller, more convenient packaging sizes. The brand also tailored its advertising campaigns to align with local cultural values and traditions, reinforcing its relevance.

This approach allows Coca-Cola to retain its global identity while remaining adaptable to regional preferences. The result is a brand that feels familiar and relevant to consumers worldwide, demonstrating the effectiveness of a flexible global strategy that accommodates local needs.

Image credit: Coca-Cola Japan

Leveraging Technology for Global Reach

Technology is a critical asset for brands aiming to expand their presence globally. Digital platforms, data analytics, and artificial intelligence (AI) offer the tools necessary to understand and engage with consumers across different regions. These technologies allow brands to collect real-time insights, personalise their offerings, and deploy targeted marketing strategies that resonate with diverse audiences.

Netflix exemplifies how technology can drive global success. The streaming service uses data analytics and AI to deeply understand viewer preferences in various markets. By analyzing viewing patterns, Netflix can tailor content recommendations to individual users, making the experience more relevant and engaging for audiences around the world.

Additionally, Netflix’s investment in local content further enhances its appeal in specific regions, demonstrating how technology can be leveraged to achieve global reach and local relevance.

Image Credit: Netflix

Building Brand Trust Across Borders

Building trust is fundamental to a brand’s success, particularly when expanding into new markets. Trust is not just about delivering a quality product; it’s about transparency, adhering to ethical practices, and forging strong local partnerships. Consumers across the globe are increasingly discerning, and they expect brands to act responsibly and authentically, especially when they enter their local markets.

Unilever is a strong example of a brand that has effectively built trust across borders. The company’s commitment to ethical practices and corporate responsibility is evident in its Sustainable Living Plan, which aims to improve health and well-being, reduce environmental impact, and enhance livelihoods worldwide. Unilever has successfully integrated these principles into its operations across different regions, tailoring its initiatives to address local challenges.

For instance, in India, Unilever has partnered with local organisations to promote hygiene and sanitation through its Lifebuoy soap brand. By educating communities about the importance of handwashing, the company not only enhances public health but also strengthens its reputation as a responsible and caring brand. This approach has earned Unilever significant trust and loyalty from consumers in diverse markets, proving that ethical branding and corporate responsibility are crucial to establishing long-term relationships with global audiences.

Image credit: Unilever

Navigating Regulatory and Competitive Landscapes

Expanding into new markets often means navigating a complex web of regulations and facing stiff competition from established local players. Regulatory requirements can vary significantly from one country to another, covering areas such as product standards, advertising restrictions, and data privacy laws. For global brands, the ability to adapt to these regulations while maintaining a competitive edge is crucial for success.

Apple’s entry into the Chinese market illustrates how a brand can overcome regulatory challenges to establish a strong presence in a highly competitive environment. China’s strict regulations on data storage, internet censorship, and local partnerships posed significant hurdles for Apple. To comply with Chinese laws, Apple made strategic decisions, such as partnering with local companies like China Mobile and setting up a data centre in China to store user data locally. These moves ensured that Apple met regulatory requirements without compromising its product offerings.

Moreover, Apple’s approach to navigating the competitive landscape in China involved understanding and responding to local consumer preferences. Apple differentiated itself from local competitors by offering localised content and services and developing features tailored to Chinese users. Despite the challenges, Apple’s ability to adapt to the regulatory environment and stay attuned to local market dynamics has allowed it to maintain a strong foothold in one of the world’s most challenging markets.

Image credit: Apple Store China

Common Pitfalls and How to Avoid Them

Expanding into international markets presents numerous opportunities but comes with its share of risks. Many brands make critical mistakes that can hinder their success or even derail their expansion strategy. Understanding these pitfalls and how to avoid them is essential for any brand looking to establish a global presence. Below is a list of common mistakes brands often make during worldwide expansion and practical solutions to navigate these challenges effectively.

Underestimating Cultural Differences

  • Conduct thorough cultural research to understand local customs, values, and consumer behaviours.
  • Tailor your product offerings, marketing messages, and customer interactions to align with these cultural nuances.

Ignoring Local Competition

  • Analyze and understand the competitive landscape in each market.
  • Identify major local competitors and their strengths and weaknesses, and adjust your strategy to offer something unique that resonates with local consumers.

Failing to Comply with Local Regulations

  • Engage local legal experts to ensure full compliance with local regulations, including product standards, advertising restrictions, and data protection laws.
  • Review regulatory changes regularly and adapt quickly to stay compliant.

Inconsistent Brand Messaging

  • Develop a flexible yet consistent global strategy that maintains your brand’s core identity while allowing for regional adaptations.
  • Ensure all marketing materials and communications align with global standards and local expectations.

Overlooking Supply Chain Challenges

  • Plan for logistical challenges specific to each region, including shipping, distribution, and inventory management.
  • Establish reliable local partnerships and consider setting up regional hubs to streamline operations.

Inadequate Customer Support

  • Provide customer support tailored to the local market, including language preferences and cultural expectations.
  • Invest in training local customer service teams to ensure they can address issues effectively and empathetically.

Underestimating the Importance of Local Partnerships

  • Cultivate strong relationships with local businesses, distributors, and influencers who can help you navigate the market and build credibility.
  • Local partnerships can provide valuable insights and resources that enhance your brand’s market entry and growth.

Rushing the Market Entry

  • Take the time to conduct thorough market research and develop a solid entry strategy.
  • Avoid rushing into a market without fully understanding the local dynamics, leading to costly mistakes and setbacks.

Neglecting Long-Term Strategy

  • Don’t focus solely on short-term gains. Develop a long-term strategy that includes continuous market research, adaptation to evolving consumer needs, and investment in local relationships.
  • Regularly revisit and refine your strategy to ensure sustained success.

Case Study Deep Dive: Tesla’s Global Expansion Success Story

Image credit: Tesla

Tesla, Inc. is a prime example of a brand that has successfully navigated the complex landscape of global expansion. From its early days as a niche electric vehicle (EV) manufacturer in the United States to becoming a dominant global force in the automotive industry, Tesla’s journey offers valuable insights into the strategic decisions, challenges, and results that have shaped its international success.

Initial Strategy: Establishing a Strong Foundation

Tesla’s entry into the global market was built on a foundation of innovation and strategic foresight. The company’s initial focus on producing high-performance electric sports cars, such as the Tesla Roadster, helped establish its reputation as a pioneer in EV technology. This positioning attracted early adopters and generated significant media attention, laying the groundwork for Tesla’s future growth.

One of Tesla’s earliest and most critical decisions was its Initial Public Offering (IPO) in 2010. The capital raised through the IPO provided the financial resources necessary to fund the development of additional vehicle models, expand manufacturing capabilities, and begin entering international markets. This move was instrumental in positioning Tesla for global expansion.

Market Entry: Targeting Europe and China

Tesla’s first significant international push came in 2013 with its entry into the European market. The company began selling the Model S in Europe, strategically opening service centres and stores in key cities across the continent. Europe’s strong interest in sustainability and green technology provided a receptive market for Tesla’s vehicles. Tesla invested heavily in building its Supercharger network to further support its European customers, ensuring EV owners had access to reliable charging infrastructure across the region.

China represented another significant milestone in Tesla’s global expansion. Recognising the growing demand for electric vehicles in China, Tesla entered the market in 2015 with the Model S. China’s strict regulations on foreign ownership and data storage posed challenges. However, Tesla navigated these hurdles by forming partnerships with local companies and committing to building a Gigafactory in Shanghai. This strategic move allowed Tesla to localise production, reduce costs, and better serve the Chinese market, quickly becoming one of Tesla’s largest sources of revenue.

Image credit: Business Insider

Overcoming Challenges: Navigating Regulatory Hurdles

Tesla’s global expansion has not been without its challenges. The company has had to navigate various regulatory environments, each with its own set of rules and requirements.

In China, Tesla faced significant hurdles in data localisation and foreign ownership. To comply with local laws, Tesla established a data center in China and became the first foreign automaker to wholly own its factory, thanks to changes in Chinese regulations.

In Europe, Tesla encountered challenges related to manufacturing and logistics. The decision to build Gigafactory Berlin was a direct response to these challenges. By establishing a manufacturing presence in Europe, Tesla could reduce production bottlenecks and streamline the delivery of vehicles to European customers, thereby enhancing its competitiveness in the region.

Results: A Global Automotive Leader

Today, Tesla is a global leader in the automotive industry, with a presence in major markets across North America, Europe, and Asia. The company’s commitment to innovation, sustainability, and strategic market entry has paid off, with Tesla consistently ranking as one of the world’s most valuable automakers.

Tesla’s success in international markets is evident in its sales figures and market share. The company’s ability to localise production through Gigafactories in China and Europe has significantly increased its manufacturing capacity and reduced costs, making its vehicles more accessible to a global audience. Additionally, 

Tesla’s continued investment in its Supercharger network and local partnerships has strengthened its brand’s reputation for reliability and customer satisfaction.

Key Takeaways from Tesla’s Global Expansion:

  • Strategic Market Entry: Tesla’s careful selection of markets and timing of entry were crucial to its success. The company prioritised regions with strong demand for EVs and supportive regulatory environments.
  • Localisation of Production: Tesla could localise production, reduce costs, and meet the specific needs of local markets by building gigafactories in China and Europe.
  • Regulatory Compliance: Tesla’s proactive approach to navigating regulatory challenges, such as data localisation in China, ensured its continued growth and success in key markets.
  • Innovation and Adaptation: Tesla’s commitment to innovation, from its vehicle technology to its charging infrastructure, has allowed it to stay ahead of competitors and continuously adapt to changing market conditions.

Checklist for International Expansion

Expanding into global markets requires careful planning and execution. Below is a practical checklist to guide brands through the complexities of international expansion:

Conduct Comprehensive Market Research:

  • Analyze local consumer behaviours, cultural nuances, and economic conditions.
  • Identify the demand for your product or service and understand the competitive landscape.
  • Determine the local market’s potential for growth and profitability.

Assess and Adapt to Regulatory Environments:

  • Understand and comply with local regulations, including product standards, advertising laws, and data protection policies.
  • Engage with local legal and regulatory experts to ensure compliance and mitigate risks.

Develop a Flexible Global Strategy:

  • Create a strategy that maintains global brand consistency while allowing for regional adaptations.
  • Tailor marketing campaigns, product offerings, and messaging to resonate with local audiences.

Leverage Technology for Localisation:

  • Utilise data analytics and AI to gather real-time insights on local consumer preferences.
  • Implement digital tools to personalise the customer experience in different markets.
  • Ensure your digital platforms are optimised for local languages and cultural contexts.

Build Strong Local Partnerships:

  • Collaborate with local businesses, distributors, and influencers to enhance market entry and brand credibility.
  • Consider joint ventures or partnerships to navigate local markets more effectively.

Prioritise Ethical Practices and Corporate Responsibility:

  • Uphold transparency and ethical practices in all markets to build trust with consumers.
  • Engage in corporate social responsibility initiatives that resonate with local communities and reflect your brand values.

Prepare for Operational Challenges:

  • Plan for logistics, supply chain management, and distribution networks tailored to local market needs.
  • Ensure your customer service and support are equipped to handle regional languages and issues.

Continuously Monitor and Adapt:

  • Regularly assess your performance in each market and adjust strategies as needed.
  • Stay attuned to global market trends and local developments that may impact your business.

Global Expansion ROI Calculator

The Global Expansion ROI Calculator provides a framework for estimating the financial outcomes of entering new markets, allowing brands to assess the viability of their global strategies. This tool considers factors such as market entry costs, expected revenue, and operational expenses, offering a practical guide to evaluating the potential profitability of international expansion.

Key Components of the ROI Calculation:

  1. Market Entry Costs:
    • Initial Investment: Include costs associated with market research, legal fees, and setting up operations (e.g., offices, supply chains).
    • Marketing and Localisation: Factor in the cost of marketing campaigns, localisation of products, and adaptation of branding to fit local tastes and regulations.
  2. Expected Revenue:
    • Sales Projections: Estimate potential revenue based on market size, target audience, and expected market share.
    • Pricing Strategy: Consider how local economic conditions and consumer behaviour influence pricing and sales volume.
  3. Operational Expenses:
    • Ongoing Costs: Include expenses related to staffing, logistics, regulatory compliance, and customer service tailored to the local market.
    • Technology and Infrastructure: Account for investments in digital platforms, supply chain management, and local partnerships.

Simplified ROI Formula:

  • Expected Revenue: Projected income from sales in the new market.
  • Operational Expenses: Ongoing costs of running the business in the new market.
  • Market Entry Costs: Initial investment required to enter the market.

Conceptual Guide:

  1. Conduct Thorough Market Research:
    • Understand the size of the market, customer demand, and competition.
    • Use data to project realistic sales figures and potential market share.
  2. Estimate Costs Accurately:
    • Include all potential costs, both one-time and ongoing, in the calculation.
    • Consider possible variations in costs due to local economic conditions or regulatory changes.
  3. Adjust for Local Variables:
    • Tailor your pricing strategy to local consumer expectations and purchasing power.
    • Anticipate fluctuations in revenue based on seasonality, economic trends, or political stability.
  4. Calculate and Compare:
    • Use the ROI formula to estimate the potential return from each market.
    • Compare these estimates across regions to prioritise markets with the highest potential return.
  5. Review and Reassess:
    • Regularly revisit your calculations as market conditions evolve.
    • Adjust strategies based on real-world performance and emerging opportunities or challenges.

Final Thoughts

Expanding internationally is not a one-size-fits-all endeavour; it requires a deep understanding of local markets, the flexibility to adapt strategies, and the strategic use of technology to connect with diverse audiences.

Brands that succeed on the international stage prioritise local insights, ensuring their offerings resonate with cultural nuances and consumer preferences. They balance global consistency with regional relevance, leveraging technology to gather real-time data and personalise their approach. Trust and reputation, built through transparency and ethical practices, are equally crucial as they foster long-lasting consumer relationships across borders.

The critical lesson for brands looking to expand globally is clear: adaptability is key. As markets continue to evolve, brands must remain agile, continuously refining their strategies to meet consumers’ shifting demands and expectations worldwide. Success in global markets isn’t just about entering new regions; it’s about sustaining that presence by staying attuned to each market’s unique challenges and opportunities. Those who can do so will thrive today and be well-positioned for long-term success in an increasingly interconnected world.

Have you ever wondered why obtaining a bank loan isn’t as easy as shopping online? Or why selecting a health insurance policy isn’t as quick as booking a hotel?

The modern consumer has higher expectations and is increasingly asking these questions. Brands that cater to these expectations stand to beat the competition and garner customer loyalty. 

So, if you think you know your competition, think again. 

A senior executive at IBM once captured the modern consumer’s needs: “The last best experience anyone has anywhere becomes the minimum expectation for the experience they want everywhere.” 

This statement challenges most executives’ understanding of competition —that they’re limited to major players or emerging brands in their industry. However, what if the real competition extends beyond your industry? How do brands craft a winning strategy when they’re not just competing with industry peers but also with ever-evolving customer expectations shaped by their best experiences in other sectors? 

In the past,, brands gauged their competition based on rivals within their industry. A car dealership compared itself to other car dealers, a bank to other banks. This approach, while logical, is increasingly becoming outdated. In a connected world where consumers can instantly compare services and products across sectors, their expectations are no longer siloed within industry lines.

A coffee shop isn’t just competing with the café next door but also with the fast, personalised service of tech firms or the immersive experience of a luxury retailer. This broader perspective on competition compels brands to innovate continually, not just in their product or service offerings but in customer experience, convenience, and reliability.

The story of Amazon epitomises this change. Once an online bookstore, Amazon became a colossal e-commerce platform, challenging bookstores and retailers across countless sectors. Their competitive edge? Understanding and setting new benchmarks in customer expectations.

Most recently, Dubai International Airport set new benchmarks in its sector by introducing a new biometric system that allows travellers to Dubai to travel without a passport, which makes the experience more pleasant. 

Rethinking competition means brands must now consider how they stack up against the best experience a customer has had anywhere, not just against their traditional industry competitors. It’s a move from industry-focused to customer-experience-focused competition, a transition that requires a deep understanding of customer expectations far beyond industry boundaries.

Role of Market Research in Revealing True Competitors

Market research is integral to identifying a brand’s opportunities. It helps companies understand who they compete against and their customers’ evolving expectations. For instance, a fast-food chain might find its real competition lies not only with other fast-food outlets but with the expected experience whenever or whatever they buy.

Chick-fil-A, a U.S. fast-food chain known for its chicken sandwiches, redefined its customer service by looking beyond its immediate competitors in the fast-food industry. This venture was initiated through a partnership with Horst Schulze, the COO of Ritz-Carlton at the time, as the hotel chain is synonymous with luxury and exceptional customer service.

The Challenge:

Chick-fil-A was already performing well against its direct fast-food competitors. However, Schulze’s assessment that they were the “best of a bad lot” challenged them to aim higher, to compete not just with other fast-food chains but also with sit-down and fine-dining restaurants known for their superior customer service.

Market Research and Strategy:

To bridge this gap, Chick-fil-A executives thoroughly analysed these higher-end dining experiences. They conducted surveys and customer feedback sessions to understand the most valued service elements in these settings. The result was the creation of the “Core 4” principles of customer service, focusing on creating eye contact, sharing smiles, using an enthusiastic tone, and personalising customer interactions.

Image Courtesy: Chick-fil-A

Further Consultation with Danny Meyer:

Chick-fil-A didn’t stop with the insights from Ritz-Carlton. They also consulted with Danny Meyer of Union Square Hospitality Group, who is renowned for his hospitality expertise. Meyer, who later founded the popular fast-casual chain Shake Shack, worked with Chick-fil-A to deepen their understanding of hospitality, emphasising the importance of going the extra mile in service, a relatively uncommon fast food concept.

Impact and Results:

Implementing these strategies led to a significant transformation within Chick-fil-A’s service model. As a Chick-fil-A executive noted, the impact on sales, profits, and overall customer engagement was profound. The adoption of “second-mile service” became a hallmark of Chick-fil-A, noticeably differentiating them from their traditional fast-food competitors.

Competitive Analysis Across Industries

Conducting a competitive analysis beyond your immediate industry is crucial. This broader approach can uncover valuable insights and innovative practices from various sectors, offering a more comprehensive view of the competitive terrain.

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How to Conduct a Cross-Industry Competitive Analysis

Identify Key Competitors in Other Industries: Identify companies in other sectors admired for customer service, innovation, or efficiency. These could be organisations your customers frequently compare you to, even if they are outside your direct line of business.

Gather Information: Utilise public resources like company websites, press releases, case studies, and industry reports to gather information about these competitors. Pay attention to their business models, customer engagement strategies, marketing approaches, and operational efficiencies.

Analyse Customer Reviews and Feedback: Look at customer reviews and feedback for these companies. Platforms like social media, online forums, and review sites can provide insights into what customers value in their experiences with these brands.

Study Their Service Delivery and Processes: Examine how these companies deliver their services or products. What makes their process stand out? How do they handle customer service, and what are their operational efficiencies?

Benchmark Against Best Practices: Compare these findings against your practices. This benchmarking should cover customer experience, service speed, technological adoption, and innovation.

SWOT Analysis: Conduct a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis for both your company and the companies in other industries. This comparison can highlight areas for improvement and potential opportunities for your brand.

Learning from Best Practices in Different Sectors:

  • Adopting Technological Innovations: Look at how tech companies use technology to enhance customer experience and consider how you could implement similar technologies in your sector.
  • Customer Service Excellence: Study the customer service strategies of companies known for outstanding customer care, like luxury hotels or high-end retailers, and integrate applicable elements into your customer service approach.
  • Efficiency Models: Analyse the operational efficiency of companies in industries like manufacturing or logistics. Their practices could offer insights into streamlining your processes.
  • Innovative Marketing Strategies: Observe companies’ marketing tactics in creative industries or those that have successfully tapped into new customer segments.
  • Sustainability Practices: Learn from companies leading in sustainability and environmental responsibility. For instance, even if you are a beverage brand, you can learn from Patagonia, a clothing brand that is leading in sustainability. This could improve your company’s environmental impact and enhance your brand image.

Using Market Research to Adapt to Market Conditions and Customer Expectations

  • Continuous Market Monitoring: Regularly monitor market trends and consumer behaviour to stay ahead of changes and adapt strategies accordingly. Through constant market research and monitoring, Nike remains innovative with new product lines. In recent years, Nike introduced athleisure wear in response to the growing fitness and casual lifestyle blending trend.
  • Feedback Loops: Establish mechanisms for continuous customer feedback to gauge the effectiveness of the implemented strategies and make adjustments as needed. For example, Xiaomi, a Chinese consumer electronics brand, uses a unique business model that relies heavily on customer feedback. They regularly update their smartphones and other electronic products based on consumer suggestions gathered through online forums and social media, ensuring they stay closely aligned with user needs and preferences.
  • Agility in Strategy Execution: Be prepared to quickly alter or refine strategies in response to market feedback or shifts in the competitive landscape. Faced with unprecedented challenges in the restaurant industry due to lockdowns and restrictions during the pandemic, McDonald’s swiftly adapted its approach. They expanded contactless ordering and delivery options, simplified their menu to streamline operations, introduced promotions, implemented rigorous safety measures for employees and customers, and engaged in community support efforts. This rapid response allowed McDonald’s to maintain its customer base, ensure employee safety, and serve as a dependable source of affordable food during a crisis, showcasing its ability to pivot and succeed in a changing market landscape.
  • Incorporating Technology: Leverage technology to enhance customer engagement, streamline operations, and gather data for ongoing market analysis. For example, Amazon has continuously leveraged technology to improve customer engagement and streamline operations. From its recommendation algorithms to the use of AI and robotics in its warehouses, Amazon uses technology to improve efficiency and the customer experience.
  • Sustainability and Social Responsibility: Integrate sustainable practices and social responsibility into business strategies, aligning with the increasing consumer emphasis on ethical and environmental considerations. For instance, Toyota has long been a leader in sustainability, particularly with its development of hybrid and electric vehicles like the Prius. Their commitment to reducing environmental impact through sustainable practices is a core part of their business strategy, aligning with global concerns about climate change.
beauty-trends

Final Thoughts —Use Customer Expectations as a Competitive Benchmark

Working with global brands across industries and geographies, we have uncovered a critical insight: many brands may not fully realise who their competitors are. As we’ve seen through various successful brand examples, your competitors may sometimes be different from the ones you’ve traditionally considered. Instead, they could be any brand or service that sets the expectations for your customers, often from entirely different industries.

Customers today are exposed to a wide range of services and products, from online retail giants to high-tech consumer electronics. The quality of service and efficiency they experience in one sector invariably shapes their expectations of others. This shift means a brand is no longer just competing within its industry but also against the best practices of sectors far removed from its own.

Market research emerges as a powerful tool in this scenario. It helps you understand what your customers expect based on industry standards and their best experiences in any sector. These expectations become your competitive benchmark. Whether it’s the seamless convenience of an app, the personalised service of a luxury hotel, or the efficiency of a tech giant, these are the standards against which your customers are measuring you.

Therefore, brands must engage in market research and competitive analysis continuously. This ongoing process will help you stay abreast of current market trends and customer expectations and allow you to anticipate future changes. Understanding and adapting to these evolving benchmarks allows your brand to remain competitive in a market reshaped by new players, technologies, and consumer behaviours.

Look beyond your industry, learn from the best in all sectors, and use these insights to refine and enhance your business strategies. This continuous market research and competitive analysis is essential for sustained success and growth in a rapidly changing market.

For more information on how to conduct a competitive analysis, contact us here.

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Sun Tzu famously said, “Know thy self, know thy enemy.” In today’s competitive business landscape, those words apply as much to market positioning as they do to warfare. Understanding your brand’s strengths—and how they stack up against competitors—is at the heart of effective market and competition analysis.

Global e-commerce sales surpassed $6.3 trillion in 2023, and the growth continues in 2024. In this environment, brands cannot afford to operate without a clear view of the competitive landscape. A structured market competitive analysis helps businesses assess their place in the market, uncover threats and opportunities, and sharpen their strategy. This guide outlines the critical steps of market competition analysis. It offers practical tools to improve your positioning—whether you’re leading a marketing team, managing a product portfolio, or refining your brand strategy.

Identifying Competitors

Any market competition analysis begins with identifying who your competitors are. This includes both direct competitors—those offering similar products or services to the same customer segments—and indirect competitors, who provide alternative solutions that address the same need.

Direct competitors operate in the same category, sell comparable products or services, and target overlapping customer segments. They compete head-to-head for market share and brand loyalty. Nike and Adidas, for example, are direct competitors in the global athletic footwear and apparel industry, vying for dominance through similar offerings, from running shoes to performance gear aimed at active consumers.

Indirect competitors don’t sell the same product, but they serve the same core need. Their offerings may look different, but they compete for the same pool of customers. Take Uber and public transport: one is a private ride-hailing service, and the other is public infrastructure. Still, they compete in the same transportation market, especially when convenience, cost, or availability influences consumer decisions.

Identifying market competitors begins with sector and audience research. Look for brands offering similar solutions to a comparable customer base. Customer interviews and surveys can also reveal which brands consumers view as viable alternatives—information that’s often more revealing than assumptions made internally.

Digital tools like Google Trends, SEMrush, and SimilarWeb can assist with market and competition analysis. They provide data on search visibility, website traffic, referral sources, and social engagement—helping you benchmark your performance against top competitors and spot strategic gaps..

After mapping your competitors, the next step is classification. Separating direct from indirect competitors helps clarify their positioning, strengths, and blind spots. A fitness app, for instance, may face direct competition from MyFitnessPal or Fitbit, while competing indirectly with personal trainers, wearables, or wellness platforms. Understanding how these players position themselves in the market informs your own market strategy.

Analysing your competitors’ pricing models, customer engagement strategies, and feature sets is critical to differentiation. As Harvard Business Review puts it, “It’s not enough to know who your competitors are. You need to know how they think.” A strong market competitive analysis gives you more than a snapshot of their performance—it reveals intent, positioning, and market dynamics that shape how your own brand should evolve.

How to Conduct Market Competitive Analysis Effectively

Once you’ve mapped out your competitors, the next step in a market competitive analysis is to evaluate their strategy across several dimensions: product or service features, pricing models, marketing tactics, customer targeting, and overall market positioning.

Start with digital touchpoints. Visit your competitors’ websites and social media platforms to examine product features, UX design, pricing models, and engagement tactics. Look for how often they publish content, which channels they prioritise, and how customers respond. These cues can signal where they’re investing and what’s resonating in your shared market.

Go hands-on. Using your competitors’ products or services gives you direct insight into their user experience, service quality, and value proposition. This is where market analysis competition becomes tangible—revealing where your brand can outperform or where parity may already exist.

Conducting a SWOT analysis—strengths, weaknesses, opportunities, and threats—can help benchmark competitors in context. This exercise supports competitive positioning by revealing where a brand is overperforming, under-delivering, or vulnerable to disruption. A well-executed SWOT elevates market competitor analysis from a surface-level review to a strategic tool.

For instance, if you run a restaurant and a nearby competitor offers similar cuisine, reviewing their pricing, menu variety, and online reviews might reveal they charge more but offer broader options. Your opportunity might lie in focusing on ingredient quality or offering niche items at a better price point—an approach rooted in real-world market competition analysis.

Evaluating Your Market Position Against Competitors

Once you’ve completed your competitor analysis, the next step is evaluating your market position. This means assessing your brand’s relative strengths, performance gaps, and areas for differentiation in a competitive landscape. A clear view of your standing in the competitors’ market is the foundation of a winning business strategy.

A good starting point is conducting a SWOT analysis—assessing your internal strengths and weaknesses alongside external opportunities and threats. This tool helps frame your position relative to competitors and highlights where strategic shifts are needed to compete more effectively in your market.

Customer feedback is another critical source of insight. Analysing reviews, surveys, and support data can reveal how your audience perceives your value compared to other brands. Identifying where satisfaction is high—or where pain points persist—can shape more customer-centric competitive strategies.

Pricing and promotion are often where competitive advantage is won or lost. Assess whether your price points align with your value proposition and whether your marketing effectively reaches and resonates with your target audience. These are key levers for shaping your market and competition analysis.

Suppose you offer a productivity app and your competitors provide similar functionality but charge more. Highlighting your lower price point and optimising for value-conscious users could position your product more competitively. Strategic pricing in competitor markets often shapes perception as much as features do.

As Jay Abraham famously noted, “Your competitors can teach you everything you need to know about your own customers.” Evaluating your competitive position isn’t just an internal exercise—it’s a direct window into shifting customer expectations, unmet needs, and emerging threats. It’s how brands stay relevant—and ahead.

Turning Competitive Analysis into a Market Strategy Action Plan

As Forbes puts it, “The key to success in competitive analysis is to turn insights into action.” Once you’ve evaluated your market position and analysed your competitors, the next move is translating those insights into a strategic action plan. A good action plan defines clear next steps to strengthen your brand’s competitive positioning and drive tangible gains in the market.

Start by prioritising the most impactful findings from your competitive analysis. If your pricing is misaligned with competitors, that may call for a tiered pricing review. If you’ve uncovered a gap in reaching a high-potential segment, redirect your marketing spend to campaigns that speak directly to those customers. Focus first on changes that improve your market strategy where it matters most.

Next, define clear goals and metrics to measure progress. For instance, if customer experience is falling short, you might aim to lift your satisfaction score by 15% within the next quarter. Align each KPI with a specific action in your plan so that improvements in your competitive positioning can be tracked and attributed.

Implementation matters as much as planning. Assign owners for each initiative, allocate the necessary budget, and set timelines that reflect urgency and feasibility. A market and competition analysis is only as valuable as its execution, so ensure that responsibilities are clearly defined and milestones tracked.

Why Ongoing Market and Competitor Analysis Is Essential for Growth

Market dynamics rarely stand still. New competitors surface, consumer expectations evolve, and technologies disrupt overnight. That’s why competitive analysis isn’t a one-off task—it’s a continuous discipline. Brands that integrate regular market and competitor analysis into their decision-making processes are better equipped to stay agile, refine their market positioning, and pre-empt disruption.

The most effective companies don’t just monitor competitors during quarterly reviews—they embed that vigilance into daily operations. This includes tracking shifts in pricing strategies, campaign themes, customer sentiment, and product updates. Tools like SimilarWeb and SEMrush can automate much of this competitive intelligence, while social listening reveals market reactions in real time. The goal isn’t to copy—it’s to calibrate your own strategy as new data comes in.

Frequent competitor reviews also help identify threats before they become existential. Is a rival shifting to a freemium model? Is a new player gaining traction with a feature you don’t offer? Regular analysis lets you spot these shifts early—giving you a strategic advantage in reshaping your own value proposition or route to market.

It also sharpens internal focus. When you dissect a competitor’s strengths, you often uncover your own blind spots—gaps in messaging, pricing, innovation, or service. The point isn’t just benchmarking; it’s building a better version of your own brand by learning from the moves others make.

Case Study: How Market Competitor Analysis Redefined the Hospitality Industry

Few examples of competitive disruption are as instructive—or as widely studied—as the rise of Airbnb and its impact on the traditional hotel sector. What started as a scrappy startup in 2008 evolved into a platform that not only redefined travel but forced the hotel industry to re-examine its competitive positioning and market analysis practices.

Airbnb introduced a compelling alternative to hotel accommodations: access to real homes, local neighborhoods, and experiences that felt less corporate and more personal. While hotels focused on consistency and service, Airbnb focused on flexibility, affordability, and authenticity. What followed was not just a shift in consumer preferences, but a recalibration of the entire accommodation category.

Airbnb’s Competitive Position: Strengths, Weaknesses, Opportunities, and Threats

Strengths:
Airbnb’s core advantage lies in its ability to offer differentiated, often lower-cost lodging options that feel unique and tailored to the traveler. Its platform model scales without owning property, and its user-friendly tech—particularly its search algorithm and host messaging—streamlines the booking experience.

Weaknesses:
However, its reliance on hosts means quality control is inconsistent. Airbnb has also faced regulatory headwinds in many major cities, and it lacks the service infrastructure of traditional hotels, such as housekeeping and room service.

Opportunities:
Airbnb continues to expand into adjacent segments, such as boutique hotel partnerships and curated experiences. Personalisation powered by user data remains an untapped asset. Strategic alliances with tourism boards and destination marketers present further growth opportunities.

Threats:
The biggest threat is the hotel industry’s response. As traditional players incorporate more local, lifestyle-focused experiences, the differentiation gap narrows. Regulatory pressure and consumer trust issues around safety and cleanliness also persist.

Hotel Sector’s SWOT in Response to Airbnb

Strengths:
Hotels benefit from established brand equity, consistent service standards, and a comprehensive suite of amenities. Major players like Marriott and Hilton have built loyalty ecosystems that drive repeat bookings.

Weaknesses:
However, many hotels remain locked into legacy pricing models and operate with higher overheads. Their experiences often lack the bespoke charm that newer travelers seek.

Opportunities:
The industry has begun pivoting to lifestyle and boutique formats. Hotels now leverage local partnerships, design-forward properties, and digital check-in to modernize the guest experience. Personalisation through AI and CRM platforms is a growing area of focus.

Threats:
Competition from Airbnb is no longer fringe—it’s mainstream. Hotels must also contend with the risk of stagnation, especially if they fail to keep pace with shifting expectations around flexibility, digital engagement, and community-driven travel.

How Competitive Analysis Shaped Strategic Responses

Early on, many hoteliers dismissed Airbnb as a niche platform for backpackers. But as it began eating into both budget and premium segments, that attitude shifted. Brands like Marriott restructured their competitive market analysis processes, identifying the need to not only protect their market share but rethink what hospitality means to the modern guest.

In 2019, Marriott launched its Homes & Villas program, offering curated home rentals in over 100 global destinations. This move wasn’t just a reaction—it was the result of strategic insight grounded in competitor research. Marriott leveraged its strengths in quality assurance, loyalty, and service to create a differentiated home-sharing model that spoke to Airbnb’s audience, but with hotel-grade consistency.

Hotels also began redesigning spaces to reflect a sense of place, introducing co-working lounges, hyperlocal food and beverage offerings, and smart room tech. These shifts, spurred by competitive analysis, helped them re-enter the consideration set for digitally native travelers.

Competitive Lessons for Any Business

The Airbnb vs. hotel case illustrates a broader truth: competitors can force transformation—but only if you’re paying attention. Some of the most powerful lessons include:

  • Disruption isn’t always loud at first. Airbnb’s early growth was underestimated. Continuous market competitor analysis helps brands detect early signals of change.
  • Adaptability is a strategy. Hotels that thrived didn’t just respond—they reinvented aspects of their service, pricing, and positioning.
  • Consumer preferences evolve quickly. Airbnb won market share by aligning with rising demand for personalisation, informality, and flexibility.
  • Innovation breeds more opportunity. Airbnb’s rise didn’t just disrupt—it created an entire ecosystem of adjacent businesses, from property management firms to travel experience curators.

Understanding your market competitors isn’t just about benchmarking features—it’s about interpreting strategy. The brands that succeed are the ones that don’t merely track their rivals. They out-think them.

Examples of Competitive Analysis That Changed the Game

Some of the most iconic shifts in modern business strategy have come from companies willing to dig deep into their competitors’ playbooks. Competitive analysis is not just about watching the market—it’s about anticipating moves, identifying blind spots, and rethinking your own approach in response. The following examples highlight how brands used market competitor analysis to shape their trajectory and pull ahead.

Coca-Cola vs. Pepsi: Leveraging Brand Legacy in a Crowded Market

The rivalry between Coca-Cola and Pepsi is a masterclass in sustained market competition. By the early 2000s, both companies had strong global reach, but Pepsi’s aggressive youth-oriented campaigns were beginning to erode Coca-Cola’s dominance. Coca-Cola responded not with more of the same, but with insight. A deep dive into Pepsi’s messaging, pricing shifts, and consumer engagement revealed an opportunity to play a different game. Coca-Cola leaned into its heritage, nostalgia, and emotional connection with consumers. The result: a global marketing campaign that reasserted the brand’s identity, reinforced loyalty, and differentiated it in a saturated market.

This wasn’t reactionary—it was a strategic pivot grounded in competitor analysis. By studying not just what Pepsi did but why it resonated, Coca-Cola repositioned itself without mimicking its rival.

Netflix vs. Blockbuster: Turning a Weakness Into a Market Reset

Netflix’s rise wasn’t just a product of innovation—it was a direct result of targeted competitor analysis. In the early 2000s, Blockbuster was the undisputed leader in home entertainment. Netflix, then a mail-order DVD rental service, identified friction points in Blockbuster’s model: late fees, limited stock, and lack of convenience. But rather than compete on physical footprint, Netflix studied consumer frustration and shaped its offering around that pain.

Their subscription model eliminated fees and shifted the power to the user. By the time streaming became viable, Netflix had already cultivated a loyal base and was poised to scale. Blockbuster, by contrast, failed to take the threat seriously and ignored the strategic signals. The lesson? Competitive positioning means more than knowing who’s out there—it means understanding what they’re missing.

Amazon vs. Barnes & Noble: Redefining the Customer Experience

In the 1990s, Barnes & Noble was the titan of book retail. But as e-commerce grew, Amazon quietly began mapping every inefficiency in the traditional retail model. It wasn’t just about cheaper books—it was about building a better experience: one-click ordering, user reviews, massive inventory, and fast delivery. This wasn’t an accidental evolution. Amazon’s strategy was built on a clear understanding of its competitor’s vulnerabilities: limited shelf space, slower logistics, and a store-based model that couldn’t scale with digital demand.

By the time Barnes & Noble responded with its own digital initiatives, Amazon had redefined the category. This case highlights the power of foresight—and the danger of underestimating competitors operating outside your traditional frame.

Tools and Resources for Conducting Competitive Analysis

Conducting competitive analysis can be a complex and time-consuming process. Fortunately, many tools and resources are available to help brands conduct competitive analysis effectively. Here are a few examples:

  1. Competitive analysis templates: Many business and marketing websites offer free or paid templates for conducting competitive analysis. These templates provide a framework for identifying and analysing your competitors’ strengths and weaknesses and opportunities and threats in the market.
  2. Industry reports: Industry reports provide valuable data and insights into the competitive landscape of a particular industry. These reports may include information on market share, pricing trends, consumer preferences, and more. They can be purchased from market research firms or industry associations.
  3. Online tools: Many online tools are available to help businesses conduct competitive analysis, such as SEMrush for analysing online advertising and search engine rankings and SimilarWeb for analysing website traffic and engagement.
  4. Social media analytics: Social media platforms offer valuable data on customer sentiment, engagement, and trends. You can gain insights into your marketing strategy and customer preferences by analysing your competitors’ social media presence.
  5. Market Research Agencies: Hiring an expert market research agency can be a valuable investment for businesses that lack the expertise or resources to conduct competitive analysis in-house. Agencies can provide a deep understanding of your industry and competitors and insights into emerging trends and opportunities.

Tips for Staying Ahead of the Competition

Conducting competitive analysis is an essential part of developing a successful business strategy. However, it’s not enough to simply analyse your competitors – you also need to use the insights gained to stay ahead of the competition. Here are a few tips for staying ahead:

  1. Stay up-to-date on industry trends: Keeping up with the latest trends and developments in your industry can help you anticipate changes in the market and stay ahead of the competition. Subscribe to industry newsletters, attend conferences and trade shows, and follow industry leaders on social media to stay informed.
  2. Focus on customer needs: While it’s essential to understand your competitors’ strategies, it’s even more critical to understand your customers’ needs and preferences. Conducting market research and gathering customer feedback can help you tailor your products and services to meet their needs and gain a competitive edge.
  3. Invest in innovation: Innovation can help you differentiate your business and stay ahead of the competition. Invest in research and development, experiment with new technologies and business models, and encourage a culture of innovation within your organisation.
  4. Build strong partnerships: Building strong partnerships with other businesses can help you expand your reach and offer more value to your customers. Look for opportunities to partner with companies that complement your own, such as suppliers, distributors, or complementary service providers.
  5. Embrace change: Finally, it’s essential to be flexible and adaptable in the face of change. The business landscape is constantly evolving, and it’s important to be willing to pivot your strategy when necessary to stay ahead of the competition.

Tools, Tips, and Pitfalls in Competitive Analysis

Conducting a thorough competitive analysis requires more than instinct—it takes structure, consistency, and the right tools. Whether you’re benchmarking your market position or planning a strategic shift, having access to effective resources can turn observation into actionable insight.

Tools and Resources for Market Competition Analysis

A growing number of digital platforms and frameworks are available to help businesses navigate competitive analysis more efficiently:

  • Competitive analysis templates offer a clear framework for identifying and evaluating your competitors’ strengths, weaknesses, opportunities, and threats. These can be found on many business and marketing platforms and help streamline the process, particularly for teams with limited time or experience.
  • Industry reports provide macro-level data on market share, pricing trends, consumer behavior, and future forecasts. These are particularly useful for understanding market dynamics and are available from firms like Statista, IBISWorld, and Nielsen.
  • Online analytics tools such as SEMrush, Ahrefs, and SimilarWeb allow businesses to monitor competitor traffic, keyword strategies, and online visibility. These tools are vital for understanding how competitors rank and where their digital strategies are gaining traction.
  • Social media analytics platforms like Brandwatch, Sprout Social, and native tools from X (formerly Twitter), LinkedIn, or Instagram offer insights into brand sentiment, content engagement, and audience trends. Analysing a competitor’s social presence can highlight gaps and emerging preferences in your shared customer base.
  • Market research agencies remain a gold standard for brands that need deep, tailored analysis. These agencies combine competitive benchmarking with qualitative and quantitative methods to provide insight that goes beyond surface-level data.

How to Stay Ahead of the Competition

Tools and data are only as good as the action you take. To keep your business ahead of competitors in fast-moving markets, consider the following approaches:

  • Track market trends continuously. Subscribe to newsletters, follow analyst updates, and attend industry events. Staying informed is the first step to being adaptable.
  • Prioritise customer feedback. Competitive analysis should never distract from understanding your own customers. Gather direct feedback regularly, and compare it with your competitor insights to identify underserved needs.
  • Commit to innovation. Whether through product improvements, operational efficiency, or brand experience, investing in innovation keeps you from competing solely on price or scale.
  • Build strategic alliances. Collaboration with suppliers, partners, or even adjacent brands can create shared value and differentiate you in a crowded market.
  • Be ready to pivot. Market conditions shift quickly. The best competitive strategies are responsive, not rigid. Agility beats perfection.

Common Challenges in Competitive Analysis

Despite its value, market competition analysis isn’t without limitations—and recognising these from the outset can help ensure better decision-making:

  • Data quality varies. Not all competitive data is accurate, current, or complete. Companies don’t always disclose performance figures, and third-party estimates can be misleading without context.
  • Over-analysis leads to imitation. Excessive focus on competitors can result in reactive decisions or copying strategies that don’t align with your brand’s unique strengths.
  • Reports can be outdated. Industry whitepapers and syndicated research often reflect past quarters. Supplement these with real-time tools and direct research.
  • Markets shift fast. Emerging technologies, new entrants, or evolving customer values can quickly make past analyses obsolete. Competitive analysis must be iterative, not static.
  • It’s just one lens. A complete view of your business requires triangulation. Combine competitor insights with internal data, customer interviews, and market research to form a well-rounded strategy.

Frequently Asked Questions About Competitive Analysis

What is the purpose of competitive analysis in marketing?
Competitive analysis helps businesses understand their position in the market relative to others. It reveals competitors’ strengths and weaknesses, identifies opportunities and threats, and informs strategy on pricing, product development, and messaging.

What are the key components of a competitive analysis?
A thorough analysis typically includes competitor identification, SWOT analysis, market share estimates, pricing and positioning assessments, and an evaluation of digital marketing strategies, product offerings, and customer feedback.

How often should a business conduct market competition analysis?
Ideally, companies should conduct a formal competitive analysis quarterly, with ongoing tracking of key competitor moves and market changes in between. In fast-moving industries, more frequent reviews may be necessary.

Which tools are best for competitor analysis?
Tools like SEMrush, SimilarWeb, and Ahrefs are widely used for digital performance tracking. For broader strategy insights, platforms like Statista or industry-specific research firms can offer up-to-date market data. For deep dives, working with a market research agency often yields the most actionable intelligence.

Can small businesses benefit from competitive analysis?
Absolutely. Even basic competitor research can help small businesses identify unique value propositions, find gaps in the market, or adjust pricing to remain competitive. Many affordable tools and templates are available to get started.

What’s the difference between direct and indirect competitors?
Direct competitors offer similar products or services to the same target audience. Indirect competitors meet the same need through different solutions or business models. Both should be considered in a market and competition analysis.

Future-Proofing Your Competitive Analysis Strategy

Competitive analysis is no longer a static snapshot—it’s a real-time, multi-dimensional process shaped by technology, consumer sentiment, and data. As businesses recalibrate their strategies to keep pace, several trends are transforming how we assess market competition and define strategic advantage.

Artificial Intelligence in Competitive Strategy
AI is reshaping the competitive analysis process by enabling faster, deeper data insights. From automating trend detection to comparing pricing models across thousands of SKUs in real time, AI-powered platforms allow marketers and strategists to move from hindsight to foresight. These tools don’t just track what competitors did—they help predict what they might do next.

Social Media as a Competitive Signal
With over 5 billion global users across platforms, social media is now a vital arena for brand positioning and customer influence. Social listening tools like Brandwatch, Sprout Social, and Meltwater allow businesses to monitor competitor engagement strategies, influencer partnerships, and campaign sentiment in near real-time. As algorithms evolve, so too does the value of mining social data for competitor insights.

Predictive Analytics and Market Foresight
Using historical data, predictive analytics helps businesses forecast competitor moves, market shifts, and emerging threats. Whether it’s identifying declining customer loyalty to a rival brand or modelling adoption rates of a new pricing strategy, predictive modelling enables businesses to act early—not react late.

The Scale and Speed of Big Data
As the volume of available information continues to grow, competitive analysis tools must handle vast and varied data sets—financials, patents, customer reviews, third-party benchmarks, and more. Big data analytics platforms allow companies to cut through the noise and identify meaningful patterns, helping teams build a more accurate view of where they stand in the market.

Knowledge Sharing and Cross-Sector Insights
Industry silos are dissolving as competitive insights increasingly come from adjacent sectors. Auto brands are studying tech platforms, fintechs are watching logistics firms, and global retailers are tracking emerging startups. Structured collaboration—whether through benchmarking alliances, joint research, or external advisory partnerships—is becoming an integral part of forward-thinking market competitor analysis.

Why Market Research Still Anchors Competitive Strategy

While tools and technology have evolved, one element remains irreplaceable in any competitive analysis strategy: rigorous market research. Understanding customer needs, motivations, and shifting behaviour provides the foundation on which competitive insights gain context and value.

For companies that don’t have dedicated internal capabilities, partnering with a market research agency can elevate both the speed and accuracy of decision-making. Here’s why:

  • Expertise and Tool Access: Agencies come equipped with advanced analytics platforms, survey software, and proprietary data sources that are often inaccessible to internal teams.
  • Objective Analysis: An external partner brings a neutral lens to competitor benchmarking—free from internal assumptions or biases that can cloud strategic judgment.
  • Efficiency and Focus: Market research firms streamline the process, from designing competitive intelligence frameworks to gathering, analysing, and interpreting findings, freeing your team to focus on execution.
  • Flexible Methodologies: Whether you need in-depth interviews with B2B buyers in five countries or a rapid survey to test consumer perceptions, agencies offer scalable approaches aligned to budget and timelines.

In today’s saturated markets, where competitors launch, pivot, or fade within months, having an agile and intelligent market competition analysis strategy is no longer optional—it’s mission-critical. And the difference between knowing the field and owning your position often comes down to the quality of insight behind your next decision.

If you’re ready to move beyond surface-level tracking and build a competitive analysis strategy that delivers real market impact, Kadence can help. Our global team of research experts brings together advanced tools, sector-specific experience, and a deep understanding of evolving competitive landscapes. Whether you’re entering new markets, launching a new product, or trying to outmanoeuvre aggressive rivals, we’ll help you see the competitive field clearly—and act with confidence.

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Staying ahead of competitors requires more than instinct—it demands insight. That’s where competitive intelligence (CI) becomes essential. As industries transform rapidly in response to technological shifts, consumer expectations, and global disruptions, CI provides the strategic lens companies need to anticipate change and act decisively.

Competitive intelligence gathering is the systematic—and ethical—collection and analysis of data about competitors, market conditions, emerging trends, and customer behaviour. When done correctly, CI allows companies to uncover actionable insights, mitigate risk, and sharpen their competitive advantage without crossing legal or ethical boundaries.

At its core, CI involves analysing your competitors’ strengths, weaknesses, strategic moves, and potential vulnerabilities. It also extends to understanding industry trends, technological advancements, and customer sentiment. In 2024, companies are using CI not only to monitor rivals but to anticipate disruptions, benchmark performance, and support strategic planning across product development, pricing, and marketing.

Competitive intelligence research helps companies identify their brand’s opportunities and threats, understand customer needs and preferences, and develop strategies aligned with their competitive environment.

When conducted effectively, competitive intelligence research helps brands uncover unmet customer needs, track emerging threats, and pinpoint strategic opportunities. It supports long-term planning and short-term pivots by keeping decision-makers informed about shifts in the competitive environment—whether from new entrants, changing buyer behaviour, or geopolitical pressures.

According to Statista, the global market intelligence industry is projected to exceed $23 billion by 2025, driven by rising demand for real-time competitor tracking, digital analytics, and strategic foresight. Businesses that integrate competitive intelligence into their decision-making processes are more likely to outperform their peers in customer retention, product innovation, and speed to market.

While the term “competitive intelligence” feels contemporary, the practice has roots more than a century old. Early 20th-century businesses began formalising market research as a way to monitor rivals and anticipate shifts in demand. What began as basic data gathering has since evolved into a strategic discipline—powered today by digital tools, predictive analytics, and global access to information.

The Value of Competitive Intelligence

Understanding why competitive intelligence is important goes beyond simply keeping tabs on rival companies. CI is a foundational tool that enables organisations to make proactive, well-informed decisions based on concrete data about the external environment. Whether you’re launching a product, entering a new market, or defending your position in a crowded field, competitive intelligence reveals the shifting dynamics that can determine your success or failure.

At its best, CI helps organisations avoid blind spots. Instead of reacting to competitors after they’ve already gained ground, businesses armed with competitive intelligence can anticipate moves, assess market readiness, and identify threats before they materialise. This is especially important in industries undergoing rapid transformation, where outdated assumptions about the market can quickly become liabilities.

Competitive information gathered through CI also plays a central role in strategic planning. It informs pricing, positioning, innovation pipelines, and resource allocation. By comparing your brand’s strengths and vulnerabilities with those of competitors, it becomes easier to prioritise the right initiatives and sidestep costly missteps. In this way, CI doesn’t just help companies respond to the market — it helps them shape it.

Perhaps most importantly, competitive intelligence enables customer-centric thinking. By understanding how competitors are solving customer problems (and where they’re falling short), companies can find ways to differentiate meaningfully. CI helps clarify not just what customers want, but how well others are delivering it.

Ultimately, competitive intelligence isn’t just about knowing the competition. It’s about equipping your organisation with insight — not assumptions — so that every major decision is grounded in external reality.

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Technology’s Role in Competitive Intelligence

Modern technology has redefined how companies gather competitive intelligence. From advanced web-scraping tools to AI-powered analytics, businesses can now collect and process vast volumes of competitor and market data in real time. Social media, review platforms, and search behaviour offer unfiltered views into customer sentiment and competitor activity—often before those insights show up in official reports.

Terminology and Ownership

Competitive intelligence is sometimes used interchangeably with terms like market intelligence, business intelligence, and competitive analysis. While their scope can vary, all serve the same function: helping businesses make informed decisions grounded in competitor and market insight.

Responsibility for gathering this intelligence usually falls across multiple teams. Marketing, research, product, and strategy functions often collaborate—drawing from different data sources to shape a unified view of the competitive environment.

How Companies Gather Competitive Intelligence

Competitive intelligence collection methods fall into two main categories: primary and secondary research.

Primary intelligence is gathered directly through interviews, surveys, focus groups, customer feedback, or even conversations with suppliers and channel partners. This first-hand information helps uncover insights that are often invisible in published data—such as why customers are switching brands or how frontline sales teams view emerging threats.

Secondary intelligence draws from publicly available sources. These include financial statements, investor calls, regulatory filings, industry white papers, and news coverage. Secondary sources are especially useful for tracking market shifts, spotting trends, and benchmarking competitor strategies.

How to Gather Competitive Intelligence

Gathering competitive intelligence effectively requires more than monitoring a few headlines or visiting a competitor’s website. It’s a structured, ongoing process that draws from both qualitative and quantitative sources — designed to capture not only what competitors are doing, but why they’re doing it and how the market is responding.

The first step in gathering competitive intelligence is defining what information is most relevant. Not all data is useful. Businesses must identify the critical areas they want to track — such as product development, pricing strategy, customer feedback, partnerships, or go-to-market timing — and map those against their business goals. From there, researchers can identify appropriate data sources and collection methods.

Common approaches include monitoring publicly available content like press releases, investor presentations, job postings, and digital ad spend. Analysts often use tools such as Similarweb, SEMrush, or BuiltWith to track web traffic patterns, ad performance, and tech stack changes. Social media listening, customer reviews, and competitor FAQs can also provide real-time insight into positioning and sentiment.

Primary research can be just as valuable. Interviews with customers or former employees, mystery shopping, surveys, and trade show attendance often reveal more than an online audit ever could. These methods also offer more context, helping researchers interpret what competitors are doing and how customers are responding.

Critically, competitive intelligence is not about hoarding data — it’s about turning the right information into strategic insight. As a best practice, all data gathered should be logged, tagged, and assessed by credibility and timeliness. Over time, building a structured competitive intelligence system allows teams to spot patterns and shifts that may not be immediately obvious from isolated data points.

Done well, CI gathering becomes an intelligence loop — continuously feeding information into decision-making processes and enabling brands to act with speed, clarity, and confidence.

Competitive Intelligence Framework

A well-structured competitive intelligence (CI) framework is essential for turning raw information into actionable strategy. At its core, CI isn’t just about collecting data—it’s about building a disciplined process that allows companies to anticipate shifts in their market, neutralise threats, and seize emerging opportunities. The framework typically consists of four key stages: collection, analysis, dissemination, and action.

Collection is the foundation. This phase focuses on gathering relevant, timely, and credible data from both primary and secondary sources. Primary sources include interviews, surveys, and direct customer or stakeholder input. Secondary sources might involve competitor press releases, earnings calls, analyst briefings, industry reports, or government filings. In 2024, advanced tools—such as AI crawlers, sentiment analysis engines, and global news aggregators—are helping researchers go beyond surface-level data to identify early warning signs in competitor behaviour.

Analysis is where the signal separates from the noise. Collected data must be interpreted within the context of your company’s strategic goals. This stage involves triangulating across sources, testing assumptions, and connecting seemingly disparate insights to paint a coherent picture of competitor intent, customer shifts, or potential disruption. Increasingly, companies are integrating scenario planning and predictive analytics into their CI analysis to forecast where their industry might be headed in 12, 24, or 36 months.

Dissemination ensures that insights aren’t trapped in PowerPoint decks or siloed in strategy teams. Intelligence must be delivered to the right stakeholders—product teams, marketers, executives—at the right time, and in the right format. Some firms now use real-time CI dashboards to circulate insights organisation-wide, while others embed CI updates into quarterly business reviews.

Action is the critical final step—and the one most likely to be overlooked. It’s not enough to understand your competitors; you have to outmanoeuvre them. Insights should inform pricing, messaging, product development, M&A decisions, and go-to-market planning. Without action, competitive intelligence is just an exercise in observation.

Legal and Ethical Considerations in Competitive Intelligence

While competitive intelligence is an essential part of strategy, the line between ethical research and unethical conduct must be clearly drawn. CI must be grounded in legality, transparency, and respect for intellectual property. Ethical CI practitioners do not engage in industrial espionage, misrepresentation, or data scraping from behind paywalls or authentication gates.

Acceptable methods include analysing publicly available financial data, attending trade shows, monitoring competitor job postings, and conducting social listening. However, it is unethical—and in many jurisdictions, illegal—to pose as a customer to gain proprietary access, or to solicit confidential information from current or former employees of a competitor.

In the US, organisations such as SCIP (Strategic and Competitive Intelligence Professionals) offer ethical guidelines for CI professionals. In the EU, companies must also comply with GDPR when collecting competitor-related consumer data. Globally, organisations should regularly audit their CI processes to ensure compliance across jurisdictions.

What Makes Competitive Intelligence Ethical?

Competitive intelligence often sits in a grey area for those unfamiliar with its practices. But within the field, there are clear lines between legitimate intelligence gathering and unethical or illegal behavior.

Ethical competitive intelligence means collecting information through publicly available and legally permissible means. This includes sources like company websites, investor presentations, job postings, social media channels, news reports, patents, and customer reviews. It also includes first-hand research—interviewing customers, attending trade shows, or using mystery shopping—as long as there’s no deception about intent or identity.

The line is crossed when companies misrepresent themselves to obtain confidential data, use inside information from employees or vendors under non-disclosure agreements, or engage in corporate espionage tactics like hacking, impersonation, or bribery.

The Society of Competitive Intelligence Professionals (SCIP) has long outlined ethical guidelines emphasizing transparency, integrity, and legal compliance. For example, posing as a job seeker to obtain company secrets during an interview is unethical, even if no formal law is broken. The same applies to accessing documents marked confidential that were shared accidentally or using “scraped” data in breach of a website’s terms of service.

In short, ethical competitive intelligence respects boundaries. It builds trust internally, avoids reputational risk, and ensures that the insights gathered can be acted upon confidently, without legal exposure.

The Cost of Not Knowing

While many businesses accept the value of competitive intelligence in theory, fewer appreciate the cost of neglecting it. Failing to invest in structured, ongoing competitive intelligence doesn’t just leave a brand uninformed—it can leave it vulnerable.

When companies don’t track market signals or competitor movements, they’re often caught off guard by pricing shifts, new product launches, or changing customer preferences. This lack of awareness slows response times, weakens positioning, and allows more agile competitors to gain ground. In some industries—like technology or consumer goods—missing a trend by even a quarter can translate to lost market share, margin erosion, or stalled innovation pipelines.

Without competitive intelligence, product teams risk building in a vacuum. Marketing may struggle to differentiate. Sales may face buyer objections without knowing what alternatives are being pitched. And leadership may make strategic decisions without understanding the full landscape they’re navigating.

A 2024 report by Crayon found that 91% of organizations that invested in competitive intelligence saw measurable improvements in decision-making, and 77% reported increased win rates in competitive deals. The data underscores what many have learned through experience: when you don’t know what your competitors are doing—or what your customers are noticing—you risk falling behind without realizing it.

Competitive intelligence isn’t just about gaining an edge. It’s about not being the one left behind.

Gathering Competitive Intelligence: Best Practices 

Conducting effective CI requires more than scanning headlines or watching what competitors post on LinkedIn. High-performing CI teams build structured research workflows that address multiple layers of insight—customer intelligence, product intelligence, and market intelligence.

Companies typically monitor:

  • Product and service portfolios
  • Pricing models and discount strategies
  • Customer acquisition channels
  • Market share movements
  • Emerging players and substitute offerings
  • Key hires, departures, and job ads that signal internal shifts
  • Regulatory filings or public tenders

For global businesses, language barriers, regulatory environments, and cultural nuance can complicate international CI efforts. Here, regional experts, multilingual research partners, and localised research platforms offer a critical edge. In 2024, demand has surged for market research agencies with boots-on-the-ground experience in Asia-Pacific, Latin America, and Eastern Europe—regions where rapid growth and unfamiliar market structures often collide.

Frequency and Scope of Intelligence Gathering

How often a business should conduct CI depends on its industry’s volatility. In sectors like tech, energy, and retail, real-time monitoring is increasingly the norm. Startups might review competitive signals weekly, while more stable industries, like insurance or consumer packaged goods, may do so monthly or quarterly.

A rule of thumb: review your top five to ten direct and adjacent competitors regularly. This ensures you remain aware of major moves, while still allowing for deep dives when warranted. Tools such as Feedly, AlphaSense, and SEMrush can be configured to push alerts on specific competitors, keywords, or product categories to keep the process manageable.

Frequently Asked Questions about Competitive Intelligence

Which of the following is an ethical method of gathering competitive intelligence?
Ethical methods of gathering competitive intelligence include analysing publicly available sources such as annual reports, press releases, regulatory filings, social media activity, and industry publications. It is also acceptable to attend trade shows, review competitor websites, or use third-party market research. Any method that involves deception, misrepresentation, or the use of confidential or proprietary information without consent crosses ethical boundaries.

Why is competitive intelligence important?
Competitive intelligence helps businesses anticipate changes in the market, uncover competitor strategies, identify threats, and spot emerging opportunities. It supports better decision-making by providing a clearer picture of the competitive landscape and allowing brands to position themselves strategically.

What is the difference between competitive intelligence and market research?
Competitive intelligence focuses on gathering and analysing information about competitors, while market research is broader, encompassing customer behaviour, product demand, pricing sensitivity, and overall market trends. Both disciplines overlap but serve different strategic purposes.

How often should companies gather competitive intelligence?
The frequency depends on the pace of the industry. In fast-moving sectors like technology, CI may be conducted monthly or even continuously. In more stable industries, quarterly or biannual reviews may suffice. Companies launching new products, entering new markets, or responding to competitor moves may increase frequency accordingly.

Is it legal to monitor a competitor’s job postings or online activity?
Yes. Reviewing job listings, blog posts, LinkedIn updates, or other publicly accessible content is a legal and ethical way to gather competitive information. These can offer valuable insights into a competitor’s hiring priorities, product roadmap, or target segments.

Can market research agencies assist with competitive intelligence?
Absolutely. Many international market research firms—including Kadence—offer tailored competitive intelligence services, combining global reach with local expertise. These agencies can uncover trends, evaluate competitors’ strengths and weaknesses, and deliver actionable insights to guide strategic planning.

Why Work with a Market Research Company for Competitive Intelligence

While some brands attempt to manage competitive intelligence (CI) in-house, many turn to expert market research firms to sharpen their strategy and gain a more complete picture of the landscape. A specialised agency brings not only data collection power and analytic expertise, but also the objectivity and market experience needed to translate competitive signals into actionable insights.

A market research company provides access to best-in-class tools and frameworks for gathering and analysing competitive intelligence across categories, markets, and customer segments. These agencies are well-versed in identifying not just direct competitors, but also substitute offerings, disruptive entrants, and shifts in adjacent sectors. They know how to look beyond surface metrics to uncover the strategic motivations and blind spots that matter most.

This becomes even more critical in international markets. An international market research agency can localise intelligence gathering, helping brands navigate regional regulations, cultural nuances, and language differences that often distort or limit internal research efforts. With a presence across key global markets, agencies like Kadence offer on-the-ground insight that’s difficult to replicate from a centralised team.

Key Services Offered by Market Research Firms

  • Competitor analysis: Deep dives into product portfolios, pricing models, go-to-market tactics, and brand positioning—benchmarking your performance and uncovering your white space.
  • Industry trend tracking: Continuous monitoring of emerging innovations, category shifts, and regulatory changes to keep your strategy forward-looking.
  • Customer intelligence: Rich, attitudinal and behavioural insights that reveal how your customers—and your competitors’ customers—think, choose, and stay loyal.
  • Consumer research: Surveys, focus groups, and observational studies that assess perception, satisfaction, and the path to purchase.
  • Custom studies: Bespoke competitive intelligence projects tailored to your product, market entry, or strategic transformation goals.

In-House vs. Agency-Led CI: What’s Right for You?

Managing CI internally gives companies more control and keeps sensitive information closely held. However, it often requires substantial internal capacity, technology investment, and cross-departmental coordination that many businesses struggle to maintain consistently.

By contrast, partnering with an external market research agency allows companies to scale their efforts quickly and access a broader set of analytical tools and global benchmarks. Agencies bring structured methodology, independence, and the ability to cut through internal bias—making their recommendations more trusted by senior leadership.

The right approach depends on your objectives, timeline, and internal capabilities. But for brands operating in multiple markets or navigating disruption, outsourcing competitive intelligence can deliver a faster, more reliable path to strategic clarity.

Kadence International is a global market research company with proven expertise in competitive intelligence. With researchers across Asia, the UK, the US, and Europe, we help organisations see what others miss—and act on it. If your brand is serious about understanding where it stands, and where it could go, we’re here to support your next move.

Just like reaching an unknown destination without a map is difficult, so is building a business strategy without competitive intelligence. 

Competitive intelligence helps brands shape their product development, distribution channels, pricing, messaging, positioning, brand promotions, and features. It allows brands to identify their challenges and opportunities in the market in relation to their competition, so they can see what their competitors are doing and differentiate themselves from them. 

What is competitive intelligence (CI)?

Competitive intelligence refers to any intentional research where brands collect, analyse, and utilise data and information gathered on their competitors, customers, and other external factors, potentially providing brands with a competitive advantage.

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When brands ethically and legally collect competitive intelligence, it can help boost the organisation’s decision-making capabilities. The goal of any competitive intelligence study is to create a business plan and strategy so organisations can make well-informed decisions based on market considerations.

Competitive intelligence goes beyond knowing the competition; the process is designed to take a deep dive to unravel the finer points of the competitor’s target markets and business strategy. 

Competitive intelligence plays a vital role in all major departments of an organisation and can take on a different meaning for each department or function. For instance, for a product development team, competitive intelligence may mean new features being added to products. For a sales executive, it may be helpful to know how to create a winning proposal. For leadership, it may be understanding the competitor’s marketing strategies so they can craft a plan to gain more foothold in the market.

Competitive Intelligence studies and exercises can be tactical (shorter-term) or strategic (longer-term). The goal of tactical competitive intelligence studies, for instance, can be to obtain insights into increasing revenues or gaining market share. At the same time, strategic or longer-term reporting focuses on significant risks, threats, and opportunities, present or emerging. 

A competitive intelligence study typically includes a wealth of information and insights from various sources, like government records, online mentions, social media, trade shows and journals, customer data and interviews, and traditional news media, to name a few. These sources are easily accessible and form the starting point for the studies. More in-depth information from distributors, suppliers, competitors, and customers is needed to make truly informed decisions. 

What are the key benefits of competitive intelligence?

There is no substitute for Competitive intelligence research when it is undertaken with care and diligence. It is a powerful tool for brands to gain market share, boost revenue, and continue to build the right products at competitive prices.

Here are some key benefits of using competitive intelligence for brands:

#1. Ability to predict patterns and emerging trends

As brands excavate an enormous amount of data and insights related to their competitor’s activities, they begin to identify and foresee emerging trends in the industry. This allows brands to gain deep foresight to make informed decisions and strategic business plans. 

#2. Aids in brand positioning

As brands gather insights and data about the competitive landscape, they also gain clarity on their activities and messaging. It helps them understand what works and doesn’t and cement their marketing. 

#3. Helps make more informed decisions.

When brands unearth information, they gain critical insights into how the customers feel about their brand and the competing brands. This gives brands a better view of their customers’ wants and how their competitors are meeting the needs of the target markets. 

#4. Boosts returns and profits

When you have a good understanding of the strategies and tactics employed by your competition and how they are performing, you will be better able to invest in areas that bring the highest returns, reducing risks and boosting profits.

Going back to the definition of Competitive Intelligence, we can see three necessary steps: “collect, analyse, and use competitor and market information to make informed decisions.”

Collecting data

There are many ways of unearthing relevant competitor data legally and ethically. Searching for information online may seem rudimentary, but it can provide invaluable information about the competitors and their activities. This information is readily available and accessible on the internet and is considered low-hanging fruit. With a few simple web searches, you can find great information on what the competitor is doing and what it has done in the past. You can also learn about product features, pricing, innovations, leadership, and important news and announcements relevant to your competition. There are tools that provide insight into the competitor’s search engine optimisation activities and their online advertising efforts. 

From here, brands often go deeper and beyond the internet to analyse target markets and customer segments. Brands use quantitative and qualitative market research to gain more market insight. 

Brands use data to analyse their competition beyond the simple search process. This entails going through endless data and making sense of it all can become cumbersome. This is where data mining comes into play. Besides gathering data from third-party sources, brands also gather human intelligence by interviewing relevant people, including customers and past suppliers. This is a time-consuming process and must be undertaken by experts in market research to ensure it is done ethically and legally.  

Analyzing data

Analysis of data is a crucial step in the competitive intelligence process. Once brands collect data, it needs to be analysed carefully to provide actionable insights. This allows brands to understand the patterns and separate them from the outliers. 

The analysis aims to uncover strengths, weaknesses, opportunities, and threats as they relate to the competitive landscape. Therefore, collecting and analyzing information from disparate sources is essential in verifying their authenticity and validity. This helps us move away from making assumptions and gaining real insights from more accurate pieces of data. 

Crafting a strategy 

Once a brand has enough verified data and information on its competitors and strategies, it can utilise it to differentiate itself and make informed decisions regarding product, price, messaging, and other essential aspects. It allows brands to weigh the competitor’s strengths, weaknesses, and opportunities in relation to their own to gain a competitive advantage.

For instance, pricing is an important area for differentiation but can only be done right if everything is studied and taken into account to find the right price that is profitable and aligns with the customer’s perceived value of a brand or product offering. Therefore, a successful price is not about pricing your product at the same or lower price than your competitor but positioning your brand as the choice that provides the greatest value. And to make that happen, you need to know the price of competing products and their perceived value in the buyer’s mind. This calls for a thorough study and analysis of the competing products, markets, and consumers. 

Today, e-commerce companies use sophisticated software for competitive pricing due to the market’s highly competitive and dynamic nature. Read more on how e-commerce brands utilise price monitoring software technology to track competitor pricing here.

To get the complete picture, brands may conduct competitive intelligence surveys. They can define their target audience and use various demographic and psychographic questions to identify consumer behaviour. These also include questions about competing products and services. You may also use ranking and rating type questions and identify any unmet needs or gaps in the marketplace or use open-ended questions to get a more in-depth view of the consumer’s mind. Brand recall and recognition surveys are also helpful in gaining consumer perception of various brands. For instance, a sparkling water brand may ask: “When you think of bottled sparkling water, what brand comes to mind first?” This can help brands discover how frequently their brand is mentioned compared to competing brands in the category.

When armed with the powerful insights gained through competitive intelligence, brands can be more strategic in all aspects of business, from product development to pricing and distribution. By differentiating themselves from competitors, they can gain valuable market share, grow brand value, and brand equity, and boost their return on investment (ROI).

Like virtually all aspects of modern life, the market research industry has undergone an explosive change in our COVID-19 pandemic era. While most of the principles of market research remain intact, brands worldwide have had to refine and modify their research methods as part of this “new reality.” 

Generally speaking, market research starts with a “wide-angle” look at the spheres of influence upon a market (including new and changing customer behaviours, emerging industry trends, etc.), then zooms in on specific nuances within a target audience. 

The data collection and analysis gained from in-depth market research offer brands “a clear and detailed understanding of what your customers want, what they already like, where they conduct their own research, and much more.” Understanding the broader context of a market enables companies to:

  • Gain insights into how customers use their products or services
  • Differentiate their offerings from competitors
  • Lay the groundwork for successful product upgrades or launches
  • Identify new opportunities for growth

These insights gained can set the tone and messaging for a brand’s marketing efforts both now and in the year to come. 

Here’s a look at key trends in the market research industry today and what lies ahead on the horizon for 2022.

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Trend #1: Agility and Technology

Despite the changes wrought by the pandemic and other global forces, one factor remains constant: the continual evolution of technology underpinning advanced market research.

Advances in artificial intelligence (AI) and machine learning, for example, enable researchers to gather information from an increasingly wide range of distinct sources. These advances also contribute to a new emphasis on agile research and speed of insight. Various elements include:

Automation of routine research practices. Automating the more routine facets of research facilitates a speedier analysis and interpretation of findings. This helps researchers save considerable time and effort while winnowing down to what’s truly essential in their work. 

Shorter and smarter polls and surveys. Employing surveys that can be positioned and distributed quickly (and which take respondents only a short time to fill out) are a further boon to the speed of analysis and insight. This approach involves identifying a “mobile-reliant” population that will actively engage in a poll or survey upon request, and within a brief period of time. 

Ongoing research. Agile research equals ongoing research. In a global marketplace that’s continuously in flux, the insights garnered from one survey can dramatically change by the time a new survey is undertaken. In the same respect, researchers can expand on findings garnered from one survey to craft a new, more specialized survey that focuses on changing factors in the marketplace.

As we have stated before, “when you know your offerings suit current and emerging customer needs, your business will develop a reputation for being wholly customer-centric that your competitors can’t match.”

Trend #2: AI, Machine Learning, and Emotion

If 2021 is any guide, we can expect the avalanche of raw data to keep increasing in the year to come. The vast array of sources promises to generate more information than researchers can ever hope to compile and analyze on their own. That’s why AI and machine learning are invaluable for research purposes.

Emotion AI, for example, seeks to “decode” human emotion by analyzing voice patterns, eye movements, facial expressions, and a range of non-verbal cues—all designed to generate data that enhances a brand’s capacity for linking emotion to consumer behavioural patterns. By evaluating consumer responses to a proposed upgrade or new product launch, emotion AI can more precisely “read” human feelings and gauge the success or failure of a new venture.

As MIT Sloan notes, “New artificial intelligence technologies are learning and recognizing human emotions, and using that knowledge to improve everything from marketing campaigns to health care.”

Trend #3: Social Listening

Interacting directly with customers often yields the most pertinent data for marketing trends. But engaging in social listening can be an equally effective research method.

Social listening involves analyzing social media conversations and trends related to your brand to your industry. This extends beyond monitoring basic metrics such as “likes” or “mentions” or “followers,” with a focus instead on the buyer’s mood behind the data.

Customers frequently express their sentiments about products and services on popular social media platforms (Twitter, Facebook, Instagram, etc.). Market researchers can look at this as real-time feedback about customer preferences, brand awareness, the inroads made by competitors, etc. 

In this respect, social listening offers a beneficial way of gauging customer sentiment (what they like and don’t like about the purchasing experience, preferences regarding how a purchase is made, and so on). 

For effective social listening, research methodology can include the following actions:

  • Search on the most popular social platforms for branded keywords, phrases, or product names.
  • Explore customer review sections on platforms. 
  • Learn about customer sentiments regarding competitors.
  • Anticipate potential new trends using Google Trends or other social media listening tools.
  • Identify relevant or industry-specific social media influencers.

Social listening should be “a critical component of any company’s marketing strategy, as it allows you to react and respond to customer sentiment — and gather data to make improvements in the way your business runs,” notes Reputation.com. In essence, social listening is like “your very own perpetual focus group, rich with constantly updated and actionable business intelligence.”

Trend #4: Longitudinal Studies

There has been a steady increase in longitudinal studies for long-range market research, and the trend will continue in 2022. This approach works most effectively when a brand wishes to continuously monitor a fixed sample of its target audience over a pre-determined timeframe.

Longitudinal studies, also known as continuous research, tracks consumer and market attitude trends over extended periods. To do so, researchers gather information from the same sources through a long-term methodology that yields insights into buying habits or consumer response to a new product or service launch. 

Trend #5: DIY

Another emerging trend is the do-it-yourself (DIY) approach to market research. The proliferation of agile or smart research tools enables in-house teams to conduct surveys and other research activities, often using a centralized online platform. Types of DIY market research include:

  • Interviews with existing and potential customers through surveys, questionnaires, or focus groups
  • Segmentation of the target audience into clearly defined groups (demographic, behavioural, psychographic, and geographic)
  • Product testing, in many cases, before a brand reaches the initial production stage
  • Measuring satisfaction with loyal customers

DIY research should aim for gaining “insights into how happy your customers are and any specific areas they like or dislike.” This enables brands to:

  • Identify any areas of current (or potential) concern.
  • Drill down to core issues by identifying (and then interacting with) dissatisfied customers.
  • Determine what’s needed to improve customer attitudes and experiences. 

One caveat worth mentioning regarding DIY marketing. As Forbes notes, “if you go to a third party [for market research], you’re going to likely get a different perspective than what you would get from your own team. There’s also a greater chance that the perspective you receive is an unbiased one, which is healthy” and potentially more insightful about what a target audience truly cares about.”

Trend #6: Aligning Brand Mission and Values with Customers

In 2022 and beyond, market research will continue to explore the value of aligning a company’s mission statement and the values of its customer base. 

Gone are the days when a brand could tell consumers what it stands for and leave it at that. Today’s savvy customers do their research to determine if a brand “walks the walk,” particularly concerning those values consumers hold dear—be it the environment and sustainability, income inequality, racial harmony, and so on. 

Consumers who prefer brands aligned with their values often become very loyal once they identify that brand. However, if and when customers detect a lack of consistency between what’s expressed in a mission statement and what actions a brand takes, they may abandon that company and seek out more compatible businesses to support.

In 2022, brands are encouraged to take a fresh look at their mission and values and how these are communicated to a target audience. Monitoring social media conversations around these values can illuminate the process of refining a company’s mission statement. It’s also an excellent opportunity to look into making a fresh commitment to support the causes and initiatives that a brand’s audience considers most valuable in their own lives.

Market research trends come and go, but the end result remains consistent from the past to the future. The primary objectives are always:

  • Improving products or services
  • Generating more sales
  • Delivering expected results
  • Enhancing customer service
  • Boosting customer retention

Market research supports the need for brands to maintain agility in an ever-shifting marketplace. Customer needs never remain static. If a brand meets current needs—and, better yet, anticipates future customer needs—its place in the global market will be stronger and more durable than that of its competitors.

How do you enter a new potential market?

Expanding your brand into new markets allows you to reach potentially vast numbers of new customers and grow your revenue massively. However, the process can be complex and filled with complications.

A market entry strategy maximizes your chances of success when moving into a new market. In this article, we’ll look at some reasons to consider moving to a new market, the differences between domestic and international markets, and some strategies you can use.

Market entry defined

Market entry strategy is a plan to expand the visibility and distribution of a product or service to a new market. Market entry research helps brands to expand into new domestic or international markets where the competitive, legal, political or cultural landscape might be less known. 

Market entry research is the path to understanding a new market. It helps brands identify different success factors, reveal potential challenges, and discover hidden potential opportunities.

Why move to a new market?

First up, why should you consider moving to a new market in the first place? It’s challenging and expensive, so what are the reasons that make it worthwhile? Here are some of the main ones:

  • You’ll gain more customers and make more money – The number one reason to consider new markets is to grow your business and increase revenue by selling more products to more customers.
  • There might be no more opportunities for growth in your home market – If you’ve maxed out what your local market is capable of in terms of revenue, expanding to new markets may be the only way to grow.
  • You’ll reduce risk by diversifying your business – If one market suffers for whatever reason, you’ll have others to keep you going.

Domestic markets vs. international markets

Are you planning to enter a new domestic market or take your products overseas to sell in a foreign country? The approach for each of these will be very different.

Domestic markets

Typically, this will be much easier than entering an overseas market. The culture will be the same, everything will be geographically closer, and things will likely be very similar to your existing markets.

International markets

Global expansion is where things become more complicated. You’ll have to factor in several differences in how you currently run your business. These include:

  • Cultural differences
  • Administrative differences
  • Economic differences
  • Logistical challenges involved in transporting goods abroad

Things to consider

Before you enter any new market, it’s crucial to take some time to confirm whether you can afford the move. Can you afford the costs of exporting, working with intermediaries, tax, and all the other expenses involved? And what proportion of the market can you realistically expect to be able to serve? 

You must also consider if the product or service will work in your intended market. Market research (both online and offline) plays an important role here — ensuring demand for your product justifies the export cost.

Risks of entering new markets

There are also numerous risks involved in entering a new market, including:

  • Country risks, like the possibility of political unrest, sudden changes, or financial issues that could impact your business.
  • Foreign exchange, such as the possibility of currency exchange rates changing, could seriously affect your bottom line.
  • Cultural risk, which essentially means the possibility of your new business venture running into challenges due to significant differences in culture and customs.
  • Weather unpredictability. Are you moving into a market where natural disasters and weather conditions could cause damage to your facilities and cost money?

Once you have carefully researched your new market and weighed the potential risks, you may decide it’s worth entering. If so, there are several different strategies you can employ, each with its pros and cons.

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Different market entry strategies

Direct exporting

Direct exporting is where you ship your products to the new market directly. You’ll have to handle all aspects of the process independently, from transport to payments to operations in the new market.

This method requires more resources and time compared to working with an intermediary. You’ll need to create an exporting infrastructure, train employees, and make and receive international payments, among many other challenging tasks.

On the plus side, this approach maximizes your profits as you don’t need to pay any third parties. You’ll also have complete control over your sales and marketing processes.

Indirect exporting

Indirectly exporting involves working with an intermediary. It has some advantages, such as:

  • Much lower risk. An experienced third party will take care of the exportation process, which minimizes the risk of failure.
  • You can focus on your own business and domestic markets without being occupied by your new ones.
  • Fewer resources are required on your part.

On the other hand

  • Profits are lower since you have to pay your intermediary.
  • You’ll be disconnected from your customer base, so you’ll miss out on important insights and lessons.
  • You’ll lose complete control over sales and marketing abroad.

There are several different options when it comes to indirect exporting. Here are some of the most common ones.

Indirect exporting with buying agents

Buying agents are representatives of foreign companies that want to buy your products. You’ll work through them when selling your products to your new market.

They’re usually paid by commission and will try to negotiate the lowest possible price. Sometimes, buying agents are government agencies.

Indirect exporting using distributors

You can sell your product directly to distributors or wholesalers, who will then distribute the product to retailers.

Indirect exporting through the management and trading companies

Export Management Companies (EMCs) exist to take care of all your export and sales processes in your new market.

It’s worth taking some time to research and find the correct EMC, as most specialize in a particular market and region. They’ll help you identify markets, find customers, handle all shipping and logistics, and more.

Indirect exporting through piggybacking

Piggybacking is where you allow another non-competing company to sell your product. This can work exceptionally well if the partner company already has a customer base and distribution infrastructure in your target market.

You’ll get immediate access to your new market but for a fee.

Producing products in the target market

Another option is to manufacture your products within the target market. This saves you the cost of transport and the many logistical challenges involved in exporting your product abroad.

However, you’ll also need to consider the many challenges in manufacturing your product abroad, legal issues, costs, possible risks, and more. Depending on your situation, this could be a good option.

(For more information on the most effective strategies for entering a new market, check out our top four marketing strategies article).

Franchising / Licensing

While franchising is often associated with fast food or quick-serve restaurants, it can successfully aid expansion in many different categories. 

Franchising is where a semi-independent business owner (the franchisee) pays fees and royalties to the franchisor to use a company’s trademark and sell its products or services.

While franchising and licensing are both business agreements where certain aspects of the business are shared in exchange for a fee, a licensing agreement is typically more limited.

Entering a new market can be extremely rewarding and allow your business to move to the next level and achieve new growth. It’s essential to research all the options and ensure the export strategy you deploy is the safest and most effective for you. You’ll also need to thoroughly research the market to understand its potential and position your product for success, something we cover in our Ultimate Guide To Market Entry.

Kadence can help you do that. We have extensive experience assisting businesses by conducting game-changing research to create effective strategies for market entry. To find out more, learn about our market entry services or get in touch.

Many global economies are defined by stagnant growth, falling populations and saturated markets, making growth for brands a tricky proposition. In many ‘emerging markets’ there are still big opportunities grow… if you keep your eyes open.

Many businesses are looking to fast-growth, high-energy markets outside the so-called ‘developed’ economies to fuel their expansion. Unlike congested and sometimes shrinking economies in ‘the west’, many parts of the world are seeing rapid population growth, fast-rising incomes and are adopting transformative technologies without the burden of legacy investments. The result? Vibrant new opportunities for businesses.

But while entering any new market is a challenge for brands, moving into these more dynamic economies – often with very different cultures, business practices and consumer expectations – can be particularly tricky. Berlin isn’t the same as Birmingham, but many of the norms in both markets are recognisably similar. Head to Beijing or Bamako, and the assumptions you make about brand, product and business practices will be challenged.

Take a phased approach to understanding the opportunity afforded by new markets

The best way to understand your opportunity in different markets is to take the traditional phased approach to research. This involves the following considerations.

  1. Which markets might we look at? Consider the number of consumers, the country’s income levels and the stability of its economic and political structures. You can also examine the maturity of business practices and think about geographic location, transport links and accessibility in-market.
  2. What’s the macro environment like in a market we want to enter? Revisit all the above, in more detail. Focus on specifics – such as the transport and tech infrastructure; and business support networks (such as accounting firms or legal protections on IP) – and how the trends are evolving in those areas.
  3. How does the competitive landscape affect its attractiveness? Pay attention to other outsider brands and how they’re doing; but also domestic rivals and potential competitors poised to move into adjacent markets.
  4. What are the practical issues for market entry? In new markets further afield, transport links, language barriers, different cultural norms and local regulations can throw up roadblocks.
  5. How do we adjust our product, service or messaging to optimise our offer there? As above, but remember that very different cultures and climates can challenge even the most basic assumptions about how a product will perform.

Step away from the generalisations

It’s vital to acknowledge that ‘emerging markets’ aren’t as uniform as the term suggests. Far from it. There are so many variations by region or category that talking about common features of ‘emerging markets’ is a dangerous over-simplification. And there are as many differences within countries as between them. This particularly true in countries where rapid urbanisation has seen a break with traditional cultures outside cities.

(That’s true for any generalisation, of course. Alcohol brands, for example, can’t even treat the US and Canada the same. North of the border, there are drinking-age laws set province-by-province, massively complicating online alcohol sales. They might look the same in terms of development and even geography and demographics. But they’re not.)

That’s not to say there are no rules that apply to entering markets that share particular attributes. The pace of economic or population growth, or the expansion of middle-class consumers with disposable income, might always be a feature of your selection process for target markets.

But in many categories, consumption is growing so quickly that only the real beneficiary of a ‘toe in the water’ market entry is likely to be knock-off brands and domestic substitutes able to adjust output more responsively to local conditions, especially where legal protections for intellectual property are less secure for global players.

All these caveats mean that in-depth research into new-market consumer appetites, infrastructure and competition is just as important in growth areas as it is in more mature markets.

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Assessing new markets – 5 key considerations

All that being said, knowing the likely biggest points of difference when entering markets with strikingly different fundamentals is still important. Five things to consider:

1. Affordability 

In many emerging markets, disposable income may be much lower for large parts of the population. For global products, that means understanding the more affluent segments better and targeting marketing appropriately. For localised or commodity products, the question is cost. Can you use local manufacturing, logistics and even branding to deliver your product to a mass market?

2. Distribution 

Getting product to consumers might be more challenging. For brands that rely on developed economy logistics partners, understanding infrastructure constraints, developing local contacts and ensuring quality of service is crucial. When Haagen-Dazs first entered China, it set up its own warehouse and delivery network to ensure the product reached consumers correctly.

3. Localised branding and marketing 

What works well in Boston, may not succeed in Beijing. Cultural understanding is key to ensuring that your marketing and branding hit the spot further afield. Caveat: remember the urban/rural split. Many urban consumers are ‘world citizens’ and expect to be treated as such.

4. Watch for local rivals

The cachet of being a global brand can help enter emerging markets. But cost, customisation and the risk of ‘brand colonialism’ can make more assumptive Western brands seem out of touch and vulnerable to local alternatives.

5. Native teams

As a global market research agency, we benefit from having local teams in the markets we evaluate for clients. This means we understand the cultural context, consumer trends and broader macro situation. It is possible to enter emerging markets at arms’ length. But having local people in decision-making positions is the surest way to avoid clumsy cultural or operational missteps.

Look for leapfrog opportunities

There are plenty of upsides to emerging markets, too, beyond simply vast numbers of new customers. In some cases, our research will throw up opportunities that just aren’t available in mature markets at all.

Look at the way different platforms have developed to cater to the nuances of local markets, for example. In many fast-developing economies, traditional channels have been leap-frogged by the adoption of newer technologies. This often happens where older tech infrastructure has attained much less penetration, allowing a newer tech to fill a void.

In many African countries, for example, low population density and long distances between conurbations means traditional copper or fibre telecoms can be limited. But mobile telecoms are more practical and affordable. They offer a plethora of additional over-the-top services that have led to an e-finance and e-commerce boom. Entering those markets will require different thinking about distribution – as well as marketing and payments using creative local solutions.

Remember, e-commerce is not the same everywhere

The Philippines is another good example. In other countries, Facebook might be just part of your online marketing toolbox. But there, Facebook has attained an absolutely dominant position in e-commerce – for one simple reason. With lower average incomes, Facebook and local mobile companies realised their penetration was constrained by the cost of network data. So almost every plan has free Facebook data regardless of contract status. For market entry success in the Philippines, Facebook is going to play a big role.

But we need to distinguish between being available on those platforms on the one hand; and entering a market on the other – which involves boots on the ground. Yes, that’s more investment. But you’re also surrendering less of your margin to platform owners and logistics providers.

A staged approach to entering less well-understood markets, starting with the more popular local social networks or e-commerce platforms, allows you to refine the consumer profile. Companies also get time to get to grips with the legal and financial frameworks that might shape future involvement; and see how local fulfilment clarifies their operational options.

Don’t assume that tried and tested e-commerce strategies from the US and Europe will work everywhere in the world, however. Amazon, for example, simply doesn’t have a presence in some markets. In others, consumers can use the site, but limitations on distribution and other logistics mean delivery times, cost and availability are prohibitive. Local research about the best platforms for reach and fulfilment is a must.

Lazada, Shopee, Zalora and Carousel, are some of the top e-commerce sites in South East Asia. These names may not be familiar to firms outside the region. But they can play a crucial role for testing in these markets. Again, it’s worth working with people who understand how to optimise those platforms, as well as interpret the effectiveness of marketing on them; and what the results say about the potential for deeper market entry.

Understand the technicalities of new markets

Even online entry into a very unfamiliar market can be daunting. Moving in for formal distribution, licensing or agent agreements or even setting up locally or buying into a native business brings with it additional issues that need to be researched.

European companies with experience of entering new markets in the EU can find the regulatory and legal considerations in countries farther afield a challenge. Even in the US there are federal laws and individual state regulations over companies and property to contend with. This can make establishing a new business relatively tough. And that’s considered a ‘developed’ market.

In parts of South East Asia, many European companies report lengthy delays in registering businesses. Others discover that in some markets domestic firms have particular benefits. This could be a form of protected status, or reserved access to certain kinds of contract. This is worth exploring in due diligence especially if you plan to sell to government agencies that are often required to ‘buy local’.

Don’t make any assumptions

Most of the key factors for market entry will depend on exactly which market you’re looking to enter. There are very few hard and fast rules that apply across the generalisation ‘emerging markets’.

But there is a common theme from this guide that should frame your thinking: these markets change – fast. Before committing to entering any market – and especially ones evolving so rapidly – it really pays to research the opportunity fully. This is something that Kadence has helped many clients with, allowing companies to succeed in lucrative emerging markets. Find out more about our market entry services, or get in touch to discuss a project.

How you enter a market often dictates whether you’ll be successful there. Different approaches all have pros and cons – and deciding which to choose is as much about market insight as it is financial logic. So what are the four market entry strategies?

Export? Licensing? Franchising? Partnering? JVs? M&A? There are many ways to get into a new market. What situations typically suit each variety? What do you need to know about the market to select the most appropriate options? How do we assess the strengths and weaknesses – and their long-term effect on your business? Here’s our brief overview of your options for an entry strategy into a new market.

Early exposure: the passive way in

Online retail – and social media these days – mean brand exposure in new markets has become relatively easy. Social media shopping, for instance, is becoming an increasingly popular entry point for brands into new markets, particularly if they’re picked up by influencers. This could be by traditional media outlets (like fashionable magazines), web-based trend-setters (such as popular tech review channels on YouTube) or specialist social media influencers on global platforms such as Instagram and TikTok. Most markets have their own versions of these channels – and there are plenty of popular global options, too.

(Caveat: many global influencers, and those within markets, may need inducement to feature products or services. While ‘accidental’ market exposure is possible, you’re still likely to need some kind of strategy for this kind of introduction.)

But e-commerce can be a double-edged sword. Yes, consumers might get exposure to a brand online. But if it’s not available in their market, they can end up buying the next best thing that is available. Your brand could be doing an excellent category building job for local rivals.

It’s also worth looking out for platforms that are not global. In many markets, local e-commerce platforms have emerged. Any attempt to exploit the market will rely on having access to it. (We look into that further in our guide to entering emerging markets.)

In addition to working with local platforms, brands need to consider carefully how to fulfil orders and handle customer relations. Managing all these elements through third parties in a straight commercial relationship can work well. That said, there’s a massive gulf between entering a market virtually via e-commerce and getting ‘boots on the ground’.

That’s not just about commitment. Each of the third parties you work with is taking a chunk of your profit margin. And in some cases – particularly with perishable or heavyweight products, and especially services – the arm’s length approach just won’t work. To access that pool of consumers, you’re going to need a local presence. Here are some main routes in.

1. Structured exporting

The default form of market entry. Consumers and companies in other markets can easily buy your products wholesale, sort out logistics and handle local marketing. Increasingly, brands can ship internationally – riding the kind of passive market entry discussed above – but assigning a local trusted distributor to conduct transactions with your buyers, and even partnering directly with major wholesalers or retailers, is a perfectly good way in.

Working with the right partners can be a make-or-break decision. So thoroughly researching the key players, their terms of trade and their local reputations is vital. Even seemingly innocuous business practices can have a big effect on the way products are handled, sold and supported.

Having local agents doesn’t mean you can ignore the nuances of the local market. It still pays to get under the skin of local retail, for example, understanding any patterns of consumption and thinking about local tastes and behaviours that might shift how a product is presented. Even in an arms-length distribution agreement, it pays to tailor a product to local preferences. Chocolate brands, for example, must cater to both local biases on the flavour and texture of their product – but also the local climate. Getting under the skin of target consumers in new markets is something we’ve supported many businesses with as they’ve entered new territories.

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2. Licensing and franchising

Licensing is giving legal rights to in-market parties to use your company’s name and other intellectual property. Any licensee can produce and sell products under your name or offer services using your brand. In exchange, you get royalties or other payments. It can be an effective light-touch way of entering a market, especially if you’re a service business that needs a local workforce; or your products would benefit from local manufacturing.

But it’s not all plain sailing. How a licensee behaves towards customers, the quality of their output and the local spin they put on your product can affect the brand. That means thorough due diligence is needed on potential partners, and brands that come to the table with detailed research on their new market are much more likely to be able to tie down any important factors affecting those decisions into a contract.

Franchising is similar to licensing but requires a lot more heavy lifting up front. As well as researching any new market before entering it, brands should think about how they will structure any franchise agreement – which will require additional research into local legal structures and potential franchisees; working out what the franchise buys (for some businesses it’s little more than a licence; for others, it’s a suite of processes, marketing support materials and even hardware that come with the deal); and how they might be able to handle disputes with franchisees later.

3. Direct investment

For many companies, setting up a fully-fledged operation in the new market is a big commitment – but also brings huge advantages. This kind of ‘greenfield’ investment – ‘greenfield’ meaning the establishment of new facilities – means complete control over the operations in the new market. Many countries welcome foreign investment of this kind.

Some companies will choose only to enter new markets where this kind of investment is possible – for a variety of reasons. If the product is particularly sensitive to different kinds of handling, for example, or needs to be manufactured to particular tolerances, ownership provides a reassuring level of control.

If that’s the case, the legal and regulatory burden of different potential markets should be a factor in the due diligence process right at the outset. Having local legal and financial advice, in additional to in-market research expertise, is essential.

4. Buying a business

International M&A is still fraught with risks and paperwork, but even in a bad year – 2019 is the last we have figures for, and we might expect 2020 to be an outlier one way or another – cross-border acquisitions accounted for $1.2 trillion. (A ‘bad year’? That was a third lower than the US$1.8 trillion in deals in 2018.) The reason? Buying an existing business is a genuine fast-track for foreign companies to enter a new market.

Market research plays an even more important role in due diligence when you’re buying a business in unfamiliar territory. The traditional metrics you might assess – and even the gut feel of key decision-makers – have to be translated through completely different lenses of cultural and market norms. (Due diligence isn’t easy on domestic M&A deals; it’s much tougher abroad…)

That’s also true, to a lesser extent, with buying a minority stake in a business in your new market. This might mean less up-front investment albeit with less control, too. But in both cases, you’re also buying into local market expertise – which can be invaluable.

That’s also the big benefit of setting up a joint venture­ (JV) – a new partnership between your company and one or more parties where the ownership is shared. You get the benefits of a greenfield start-up; a lower investment than M&A or setting up on your own; local expertise baked in; and legal status as a native in the new market. Many businesses see a JV as a turnkey project: each party brings existing expertise and capabilities to bear for fast deployment.

But be warned: joint ventures only thrive when the contractual commitments of each partner and the beneficial ownership structures are crystal clear. And some big brands have come unstuck in joint ventures where the local partner’s vision for the product or service deviates from their own. Conflict resolution mechanisms are a must. Unsurprisingly, joint ventures are more common in time-limited projects where several contractors need a legal entity to collaborate on a very specific mission – and have clear terms for the joint venture’s dissolution.

Building your intelligence network

The choice of entry route will be dictated by many factors, then – consumer habits, culture, legal status, taxes and tariffs, local business practices, the transparency you can attain around potential partners and more. As a rule of thumb, the less exposure to cost and risk you have, the less control and margin you can secure.

Arms-length surveys and analysis can only tell you so much, however. Working with international agencies who have their own people on the ground in a new market not only means better access to the nuances of consumer behaviours and local trading rules – it also means dealing with people who have first-hand experience of running a business in that market. This approach has enabled to us to successfully support clients in entering new and lucrative markets.

You can learn more about our market entry expertise, or get in touch to discuss a potential project.