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SMEs: Market Entry Strategies and Applicability in a Pandemic

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Customer Satisfaction Timi Olubiyi

By Timi Olubiyi, Ph.D

The business environment is currently going through radical changes globally due to the damaging effect of the novel coronavirus (COVID19).

Therefore, to cope with this situation, businesses need to adjust and develop strategies to rise to the occasion.

A typical decision businesses’ particularly Small Medium Enterprises (SMEs) can make at the moment to achieve sustainability, and valuable competitiveness is by considering new market entry strategies.

Many firms expand their business geographic scope from domestic to nationwide or even foreign markets through this means.

With the harsh impact of COVID19 and the limitations in financial and human resources, companies can still leverage on a new market entry strategy to stem the tides.

Market entry strategy is a planned distribution and delivery method of goods or services to a new target market.

In simple terms, a market entry strategy refers to a detailed plan of how to successfully berth and run a profitable business in a new region.

Market entry strategy will help companies to assess markets’ readiness for new offerings and gain detailed insights into the new market. In short, it allows businesses to gather comprehensive insights into lucrative opportunities, industry developments, and competitive scenarios of an unknown market. This strategy makes it easier for companies to successfully establish their foothold and gain a leading edge in the new market and gain good market access.

With a market entry strategy, companies get access to important information and thus, they can increase their productivity and competitive position. It is important to note that the market entry strategy will help businesses at this time to efficiently enter new markets.

For example, a business located and operating in Ikeja, Lagos State can conduct market entry research and gather data from other states of the country (Kano, Enugu, Kwara, Osun, Rivers, Nasarawa, Taraba)  or around the West Africa region (Republic of Benin, Togo, Ghana   Guinea, Guinea-Bissau, Liberia, Mali, Mauritania, Niger, Senegal) or beyond for market expansion and new market entry strategy.

With adequate research to guide the decision, businesses can achieve increased sales, improved brand awareness and business sustainability with a new market strategy to gain market expansion.

The new market entry strategy, when implemented, can sustain the success of a proactive business due to the negative challenges created by the COVID-19.

In building a market entry strategy, time is a crucial factor, and consequently, in my opinion, the pandemic has provided good timing for new market entry and the opportunity for companies to expand easily.

It is much easier now for cross-border expansion or at the least expansion beyond the geographical location of business operation because governments are encouraging and supporting businesses to stabilize due to COVID-19 impact.

More so, we are likely to see policy responses to decrease trade barriers and improve globalization. Therefore considering new market entry strategy at this time is one of the most important ways for businesses to grow profitability and sustain competitive advantage.

By entering into new markets, businesses, particularly SMEs, can enjoy several benefits, including broadening their customer base and improving market share beyond the business location.

Consequently, if a domestic business is willing to go nationwide and/or across the globe with world-class products and services, the best option is through a new market strategy and the time is now.

Invariably, these following benefits can be achieved: economies of scale, earning foreign currency, gaining global customers, increasing brand awareness and improving market share.

Further to this, it is important to state that the ease of entry into a new market is characterised by the available financial resources, the ownership structure, managerial styles and managerial resources of the domestic businesses.

However, the relevant factors that must be considered when deciding the viability of entry into a particular market include trade barriers, customer preference, pricing, competition, and export guidelines and restrictions.

The liability of newness is another hindrance, as a new business in a new market could encounter difficulties, and this can lead to increased risk, as there is usually a lack of legitimacy in any new market.

For this reason, vigorous brand awareness and advertainment need to be accounted in other to legitimizing the business in a new market.

Significantly, the entry mode choice is one of the most important decisions a business has to make in the effort of new market entry strategy because it determines the number of resources to be committed.

Therefore, businesses have to find an entry mode that allows them to deal effectively with the risks that arise in the target destination.

There is no one specific mode of entry an organization can adopt to enter into a new market or go internationally. Businesses can consider some of the most common market entry modes, which are: directly by the setting up of an entity in the new market, directly exporting products to the new market, indirectly exporting using a reseller or distributor, and producing products in the target market.

The most common modes, however, to go into a foreign market entry are licensing, joint venture, partnering and strategic alliances, acquisitions, exporting or establishing new, wholly-owned subsidiaries, also known as greenfield ventures.

For SMEs, the option is usually to start transferring/exporting via an agent or a foreign representative. This option is a non-equity mode that requires fewer resources and provides flexibility, but the target market knowledge may be lacking.

Entry Mode Profile   Benefit
Exporting/trasferring Fast-entry, low risk   Low control, low local knowledge, the potential negative environmental impact of transportation is high
Licensing and Franchising Fast-entry, low cost, low risk   Less control, the licensee may become a competitor, legal and regulatory environment (IP and contract law) must be sound
Partnering and Strategic Alliance Shared costs reduce investment needed, reduced risk, seen as the local entity   Higher cost than exporting, licensing, or franchising; integration problems between two corporate cultures
Acquisition Fast-entry; known, established operations   High cost, integration issues with home office
Greenfield Venture (Launch of a new, wholly-owned subsidiary) Gain local market knowledge; can be seen as an insider who employs locals; maximum control   High cost, high risk due to unknowns, slow entry due to setup time

Each mode of market entry has advantages and disadvantages. Firms need to evaluate their options to choose the entry mode that best suits their strategy and goals.

Significantly, the mode of entry is a crucial factor to be considered for a business entity to be successful in a new market.

However, all the modes of market entry involve resource commitments of some kind. Because entering the market properly is one of the most important steps a business must consider.

From context observation, business expansion starts with the movement of goods and services to neighbouring states or countries that are close to business facilities. This is usually because of the lower transportation costs involved and the often greater similarity between geographic neighbours.

To be effective and successful, with new market entry strategy, businesses need to support the decision with a well-thought-out plan. One that is based on the analysis of potential competitors, understanding of the focus market environment and its inner workings, the regulatory expectations, consumer behaviour, and possible customer base, among other key factors.

A typical market entry strategy can take a few months to implement due to intensive preparation. However, it worths the effort because it will reduce business failure risk. It will also ensure an informed decision on the launch of the right product or services that align with the expectations of the customers.

More so, with new market entry strategy, adequate attention should be paid to the political and institutional environment of the target market, where businesses are likely to encounter different market conditions different from the home market.

That said, the context of digitalization has evolved over the last years and pushed further communication technologies much easier, such as the internet and mobile telecommunication. Therefore, digitalization can also be leveraged upon when considering the market entry options.

Besides the impact of the COVID-19 on businesses globally has encouraged the effective use of technological innovations. Innovation in the context of this article can be defined as ‘the introduction of something new that positively impacts businesses and mankind in meaningful and contextually specific ways.

Therefore, introducing new market entry modes to business operations at this time might just be the innovative move required to stem the impact of the pandemic on business operations. By so doing, market innovativeness, behavioural innovativeness, and strategic innovativeness would have been achieved. This will greatly improve the performance, market expansion and logistics method of businesses.

To have a winning market entry strategy plan, businesses need to set clear goals, study the target market and the competition, know the customer needs and preference.

Extant literature suggests barriers of entry to new markets, particularly foreign markets to include lack of financial, physical or technological resources; the lack of opportunities and insufficiency of managerial skills.

Another is inadequate useful information to analyse the target market and also identify business opportunities. It has also been observed that a strong brand identity or customer loyalty, and high customer switching costs can be barriers of entry to new markets.

Others include the need for new companies to obtain proper licenses or regulatory clearance before the operation. Some of the risks incurred when entering a new market and start domestic or international trade include weather risk, foreign exchange risk, and cultural risk

While the idea of entering a new market might seem viable on paper, when put to practice, organizations are challenged by several uncertainties and barriers aforementioned.

Though some companies prefer to develop their market entry plans, other outsource to specialized individuals or companies.

The engagement of knowledgeable professionals can mitigate trade risk in the target market and also improve the chances of discovering adequate market opportunities. Good luck!

How may you obtain advice or further information on the article? 

Dr. Timi Olubiyi is an Entrepreneurship and Small Business Management expert. He is a prolific investment coach, Chartered Member of the Chartered Institute for Securities & Investment (CISI), and a financial literacy specialist. He can be reached on the twitter handle @drtimiolubiyi and via email: drtimiolubiyi@gmail.com, for any questions, reactions, and comments.

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Piracy in Africa’s Creative Sector: How Creators Can Protect Their Content

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Creators Can Protect Their Content

Africa’s creative industries, from music and film to fashion, writing, and branding, are experiencing remarkable growth. However, as the sector flourishes, so do the threats posed by piracy and copyright infringement. Without proper protection, creators risk losing the value and recognition they deserve for their original work.

Copyright remains the first and most important line of defence. In many African countries, copyright protection begins automatically once a creative work, such as a song, logo, film, or design, is fixed in a tangible form. This protection can last for the creator’s lifetime, and in most cases, up to 70 years after. Yet, while automatic copyright provides a foundation, official registration strengthens legal standing and can be critical in resolving disputes.

When a creator’s work is used without permission, the violation must be addressed swiftly. Experts advise that the first step is to gather evidence—screenshots, URLS, timestamps, user details, and even data showing engagement or financial gain from the misused content. Proof of ownership, such as original files with timestamps, draft versions, or social media records of earlier uploads, is equally vital.

“Creators should always have proof of ownership ready,” says Frikkie Jonker, Director of Anti-Piracy at MultiChoice. “That could be anything from original project files to old emails or posts. It’s one of the most effective tools in enforcing your rights.”

Once evidence is collected, creators can issue takedown requests through social platforms or send formal cease-and-desist letters to website owners or hosts. Although enforcement processes differ by country, most African nations have copyright laws aligned with global standards like the U.S. DMCA. In many cases, showing credible ownership is enough to have infringing content removed.

If infringement continues or is being done at scale, such as by piracy rings or repeat offenders, creators may need to escalate the issue by reporting it to national copyright commissions or law enforcement. Efforts are also being bolstered across the continent through cooperation under agreements like the African Continental Free Trade Area (AfCFTA), with international bodies like Interpol, Afripol, and WIPO supporting cross-border enforcement.

Preventative measures are just as important. Creators are encouraged to use tools like digital watermarking and content fingerprinting to protect their work from unauthorised use online. Furthermore, smart monetisation strategies, such as YouTube’s Content ID syste,m can allow creators to earn revenue even when their content is reused without prior permission.

By understanding their rights, taking proactive steps to protect their creations, and using available technologies, African creatives can safeguard their work while continuing to build sustainable, long-term careers.

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A Journey Through Policy: My Personal Experience

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policymaking

By Saifullahi Attahir

If there was ever anything that gave me goosebumps and immense pleasure, it was being surrounded by intellectuals and mature minds absorbing facts and figures about governance, economics, public health, policymaking, national security, and international relations. In such situations I easily lose myself, forgetting almost all other things.

Even at medical school, my best lectures were those with frequent digressions, whereby the lecturer would discuss the pathogenesis of diseases for 30 minutes and later sidetrack into discussing politics, governance, or other life issues. I always enjoyed classes led by Prof. Sagir Gumel, Dr. Murtala Abubakar, Dr. Rasheed Wemimo, Dr. Aliyu Mai Goro, and co.

During such lectures, I often observed some of my colleagues disappointment for such deviation. I rather casually show indifference, for I was eternally grateful for such discussions due to the stimulatory effect they had on my mind.

After such classes, I sometimes followed up with the lecturer, not to ask about a medical concept I did not grasp, but to ask for further explanation on policy making, project execution, budgetary expenditures, why African countries are left behind, and similar pressing issues.

In situations where I can’t catch up with the lecturer, I jotted down the questions for further deliberation.

One of the manifest feature I know about my greediness was at reading books. I can open five different books in a day. I lack such discipline to finish up one before another. I can start reading ‘Mein Kampf’ by Adolf Hitler, and halfway through 300 pages, I would pick up ‘My Life’ by Sir Ahmadu Bello, and would have to concurrently read both until the end.

I often scolded myself for such an attitude, but I can’t help myself. The only way to practice such discipline was to at least read two different books in a day. Such was a triumph in my practice of self-discipline. This was apart from my conventional medical textbooks.

To some of my friends, I was called an accidental medical doctor, but actually it was a perfect fate guided by the merciful Lord that I’m studying medicine.

 For it was only medicine that makes reading books easier for you. Although time is precious in this profession, but  one finds it easier to do anything you are passionate about. The daily  interaction we have  with people at their most vulnerable state was another psychostimulant. Seeing humans suffering from disease conditions is heartache. Some of the causes are mere ignorance, poverty, superstitions, and limited resources.

The contribution one can give couldn’t be limited to just prescribing drugs or surgical procedures that end up affecting one person. It’s much better to involve one self in to position that may bring possible change to the whole society even in form of orientation.

What also motivated me more was how I wasn’t the first to traverse this similar path. Bibliophiles were common among medical students and medical professionals.

At  international level, the former Prime Minister of Malaysia, Dr. Mahathir Muhammad, was a physician.

Most of the current economic development of Malaysia was attributed to him. The South American revolutionary figure Che Guevara was a physician. Atul Gawande was an endocrinologist, health policy analyst, adviser to former President Obama, campaign volunteer to former President Bill Clinton, and adviser to USAID/WHO on health policies.

Frantz Fanon was another physician, psychiatrist, racial discrimination activist, and political writer. Dr. Zakir Naik was a renowned Islamic scholar, comparative religion expert, and physician.

At the national level, Prof. Usman Yusuf is a haematologist, former NHIS DG, and currently a political activist. Dr. Aminu Abdullahi Taura was a psychiatrist and former SSG to the Jigawa state government. Dr. Nuraddeen Muhammad was a psychiatrist and former cabinet minister to President Goodluck Jonathan.

During ward rounds and clinics, my mind often wanders to enquire not just  about the diagnosis but the actual cause of the disease condition; why would a 17-year-old multiparous young lady develop peripartum cardiomyopathy (PPCM)? Why would a 5-year-old child develop severe anaemia from a mosquito bite? Why would a 25-year-old friend of mine develop chronic kidney disease, and his family would have to sell all their belongings for his treatment? Why are our Accident and Emergency units filled with road traffic accident cases? Was it bad road conditions or lack of adherence to traffic laws and orders?

Why are African countries still battling with 19th century diseases like Tuberculosis, filariasis, and malarial infections? Why issues of fighting cervical cancer and vaccination campaigns are treated with contempt in our societies? Why access to basic primary healthcare in Nigeria was still a luxury 50 years after Alma Ata declaration?

The questions are never-ending…

Answers to these questions could be found not in the conventional medical textbooks like Robbins/Cotrand, Davidson, or Sabiston. Answers to these questions are there on our faces. Answers to these questions are tied to the very fabric of our social life, our public institutions, our culture, and our life perspectives.

In order to make any significant contribution towards the betterment of this kind of society, it would be quite easier as an insider rather than an outsider. You can’t bring any positive outcome by just talking or commenting. It was rightly stated that a cat in gloves catches no mice.

The real players in a game are always better than the spectators. A player deserves accolades despite his shortcomings, frequent falls, and inability to deliver as planned theoretically. For the player has seen it all, because so many things in public life are not as they appear. It’s only when you are there that the reality becomes visible. This is the reason why many leaders who have goodwill and enjoy public support appear to have lost track or contributed insignificantly when elected or appointed into office.

But despite all these challenges, one can’t decline to do something good just because something bad might happen. The risk is worth it….

Attahir wrote from Federal University Dutse

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A Healthier Future: President Tinubu’s Drive to Improve Nigerian Healthcare

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Letter to President Tinubu

By Victor Benjamin

Health is wealth,” a common adage echoing through Nigerian communities, encapsulates the fundamental importance of well-being. President Bola Tinubu’s administration appears to have taken this sentiment to heart, demonstrating a bold commitment to revolutionising Nigeria’s health sector.

Through a multi-pronged approach focused on strengthening infrastructure, upskilling manpower, and ensuring efficient healthcare delivery, the administration is signaling a new era for healthcare in Nigeria. This ambitious agenda, backed by tangible initiatives and achievements, holds the promise of a healthier and more prosperous nation.

President Bola Ahmed Tinubu’s administration has launched a comprehensive and ambitious agenda to transform Nigeria’s healthcare sector, signaling a new era of progress and commitment to the well-being of the Nigerian people. This multi-pronged approach focuses on strengthening infrastructure, upskilling the healthcare workforce, enhancing system efficiency, and addressing critical public health challenges. The administration’s actions are demonstrably moving towards a more robust and accessible healthcare system.

A cornerstone of this transformation is the aggressive expansion and upgrade of healthcare infrastructure. The federal government’s decisive action to convert the General Hospital Kumo in Gombe State into a Federal Medical Centre (FMC) is a prime example. This strategic upgrade, the second federal medical institution in Gombe, will significantly improve healthcare delivery in the Northeast region. Moreover, the upgraded Kumo FMC will serve as a teaching hospital for the Federal University of Kashere and Lincoln University, Kumo, contributing to the crucial training of future medical practitioners.

Furthermore, the administration is committed to dramatically increasing the number of functional Primary Healthcare Centres (PHCs) from 8,809 to over 17,600 by 2027. This expansion aims to bring quality healthcare closer to communities, particularly in underserved areas. To support this, the Basic Health Care Provision Fund (BHCPF) is being redesigned to provide more Direct Facility Funding to healthcare facilities, increasing from N300,000 to N600,000-N800,000 per quarter. The federal government has also identified 577 primary healthcare centres for immediate revitalization, indicating a focused and actionable plan.

Recognising that a strong healthcare system relies on a skilled workforce, President Tinubu has prioritised investment in human resources for health. The approval of 774 National Health Fellows, selected from each local council, aims to foster sustained improvements and cultivate future healthcare leaders. The administration has also set out to train 120,000 frontline health workers over 16 months, with 40,240 already trained, addressing critical manpower gaps in PHCs.

Additionally, the enrolment capacity of accredited nursing and midwifery institutions is being increased to meet the growing demand for healthcare professionals. A community health programme is being redesigned to create 126,000 jobs for community health workers, extending essential health services to remote and underserved communities.

Strengthening healthcare systems and efficiency is another critical aspect of the administration’s agenda. The Nigeria Health Sector Renewal Investment Initiative (NHSRII), launched in December 2023, serves as a strategic blueprint to improve population health outcomes through primary healthcare and enhance reproductive, maternal, and child health services.

The National Primary Health Care Development Agency (NPHCDA) is developing a three-year digitalisation agenda, encompassing facility functionality, supply chain management, financial management, and the community health information system.

This initiative promises improved efficiency and data-driven decision-making. Nigeria’s active participation in the Collaborative Active Strategy (CAS) further streamlines health campaigns and strengthens the overall health system.

Addressing critical health challenges is also a priority. First Lady Senator Oluremi Tinubu’s strong advocacy campaign against tuberculosis (TB), declaring it a health emergency and committing an additional N1 billion through the Renewed Hope Initiative, highlights the administration’s focus on tackling significant public health issues. The nationwide rollout of HPV vaccination, with over 12 million girls vaccinated, demonstrates a proactive approach to preventive healthcare.

The international community has recognised the administration’s commitment. The World Bank has approved $1.57 billion to support the health sector in Nigeria, focusing on strengthening human capital through better health for women, children, and adolescents. This significant financial support underscores the global confidence in the administration’s vision and execution.

President Tinubu’s comprehensive health agenda promises substantial benefits for the Nigerian populace. Foremost, it aims to drastically improve access to quality healthcare, particularly at the primary level, ensuring that even remote communities receive essential medical services.

This is complemented by a concerted effort to build a more robust and better-trained healthcare workforce, effectively addressing critical manpower shortages and ensuring adequate staffing across facilities. Simultaneously, the administration is focusing on strengthening healthcare infrastructure and equipment, upgrading existing facilities and constructing new ones to provide healthcare providers with necessary resources.

Furthermore, the agenda prioritises the creation of more efficient and transparent healthcare systems through digitalisation and improved financial management, streamlining processes and optimising resource allocation. Crucially, it demonstrates a strong commitment to tackling critical public health issues, such as tuberculosis and immunisation, through focused attention and targeted interventions. These multifaceted efforts collectively pave the way for a healthier nation, enhancing the overall well-being of the Nigerian people.

This comprehensive approach underscores President Tinubu’s understanding of the critical role of a strong healthcare system in national development. By prioritizing infrastructure, workforce development, system efficiency, and targeted interventions, the administration is laying the foundation for a healthier and more prosperous Nigeria. This narrative presents a compelling story of progress and commitment in the Nigerian health sector, marking a significant step towards a brighter future for the nation’s healthcare.

Victor Benjamin is the West/South South Director for Young Professionals for Tinubu (YP4T)

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