Not all ideas or business models that work in other countries can be transferred to the national market. There are a number of factors that should be analyzed before being encouraged to reproduce ideas and adapt them to our market.
What do you have to keep in mind?
It is clear that no matter how well a business in another country works, it does not make sense to adapt it if in which one wants to replicate there is not the same problem that requires a solution and people willing to pay for it. Regarding the variables that take into account to clarify the situation and adaptability to that market, the following stand out: that their potential clients are identifiable, achievable and that the solution is distributable. Obviously, they also attend to the size of the market and barriers to entry.
The first thing is, then. make a rigorous preliminary analysis where all the possible scenarios with which we could find ourselves are presented.
THE EXISTING COMPETITION
It is another obvious parameter for any new business, of whatever kind. So the first question that needs to be asked in this section is: Is there space for my company? Once the opportunity is confirmed, it is convenient to make a detailed study of the competition, analyze the maturity of the sector and determine what is the differential value that you can contribute. Do not forget that there are segments in which the coexistence of more than 2 or 3 powerful players results, especially when we go to niches.
THE COMPETITIVE ADVANTAGE
The parameters to be taken into account in this section are: the intangible assets generated by your project, the cost of the change, network effect (or multiplier to capture critical mass), advantage of opportunity costs and differentiation to overcome other similar businesses.
This is another key that will be decisive for the replicated model to prosper or not, taking into account that the value of an idea is directly related to its execution. Therefore, special care must be taken in attracting entrepreneurial talent. Search different types of profiles. However, he observes other factors such as previous experience, either as a professional or as a promoter of other previous ventures; academic training both in university environments and in business schools and if they come from corporates and consultancies in which they have developed a brilliant career, but now they have concerns about setting up their own projects.
Although the Spanish market is as valid as any other to launch and validate a successful project, it has its limitations in terms of size. The normal thing is that, in order to grow, you have to bet on internationalization, so you will also have to analyze opportunities in other markets and structure your project in a scalable way. This will allow expansion without the need for a significant increase in costs to increase business profit. Scalability can also be achieved by introducing new products.
This could also have been included as a fundamental factor in competitive advantage since it would correspond to the popular saying of being in the right place at the right time, before or after. That is to say, no matter how extraordinary the solution or product you want to introduce, if the national market is not prepared to receive it or does not perceive it as a solution to a real problem at that moment, it will be difficult for you to incorporate it.
TIME TO MARKET
How long does it take to have my product in the market? It is the question that should be raised at this point. Time to market is defined as the time that elapses since a product is conceived and its availability for sale. Others, like Accenture, define it as “the capacity of reaction that organizations have to create or maintain competitive advantages in the face of the challenges presented by the market and its competitors”.
LEGAL AND CULTURAL ASPECTS
When it comes to growing in other markets, you must always take into account the legal regulations that apply to each of them within the area of your business. One example is that of the Cuidum startup, a solution for the care of the elderly at home, for which they were inspired by the American Care.com, aimed at caring for homes, children, dogs and the elderly. The latter was “a difficult concept to understand in the Spanish market so they put the focus on the elderly only. Another obstacle they observed was that “the regulation regarding labor and the collaborative economy existing in Spain is very different from that of the United States.
For this, not only are involved in the choice of the idea and configuration of the team, but also involved in the management and participation of society.
If we achieve that our business generates synergies with others, the possibilities of growth improve remarkably. The saying goes: “If you want to get there fast, go alone, but if you want to go far, go with it”.