Check out highlights from the 2024 Metis Strategy Summit | Read more

International Expansion

- Companies in the Professional Employment Services and Wine and Spirits Industries

Back to All Insights

Situation

Metis Strategy helped clients develop international market-entry strategies and identify potential acquisitions and partnerships in target markets.

A professional employer services organization asked Metis Strategy to investigate the feasibility of transferring the its U.S. business models, partially or completely, to its target markets in Europe. The client also wanted to understand which potential target countries in Europe would align best with its growth strategy.

In the second case, a Fortune 500 wine and spirits company, hoping to increase its growth in China, hired Metis Strategy to research and analyze consumption trends and preferences there.

Approach

Used the Metis Strategy International Expansion Framework to help clients define their strategic objectives, improve or develop their international expansion strategy, and decide on target countries and entry modes.

In both cases, Metis Strategy uses its International Expansion Framework to help clients achieve their goals (see image below).

  • Define Strategic Objectives for Expansion: International expansion is influenced by both external and internal factors. Once a company’s international expansion objectives are defined, they should be aligned with the organization’s broader corporate or enterprise strategy.
  • Decide on Desired Entry Modes: This step includes assessing and weighting relevant target markets in alignment with both corporate strategies and growth objectives. It takes into account political, economic, cultural, and legal factors when identifying and prioritizing targets for investment. Risk-reward analyses and a variety of scenario-planning exercises are used to gauge the viability of each entry strategy.
  • Decide on Target Country and Entry Mode: Final decisions are informed by the findings of the processes listed above. That said, the elements are interdependent and should be refined and adjusted as the analysis progresses.

Outcome

Helped a leading professional employer services organization identify the most promising overseas market and develop business models suited to that market. Also helped a client identify growth opportunities in China.

Metis Strategy helped the professional employer services client identify and develop feasible business models in accordance with unique legal, cultural, and regulatory conditions in the its target markets. Additionally, Metis Strategy identified the client’s most promising target market, based on country-specific risk-reward analyses and country-by-country comparisons, and developed various market entry options, including potential acquisitions or partnerships.

In the second case, Metis Strategy provided the wine and spirits company with a detailed breakdown of the differences between its traditional markets and China, including contrasts in business climate, regulatory environment, and consumer preferences. The insights helped the client consider its growth scenarios for the Chinese market and evaluate new ways to capture market share.