Why Understanding Competition is Crucial to Success
Thousands of foreign investors and business owners flock to the U.S. each year to start and expand their business –and for good reasons. The U.S. has one of the wealthiest economies in the world and offers numerous government incentives to foreign investors. But while many businesses are zoning in on what the U.S. market can offer them, they are also overlooking one critical thing: competition. Many businesses underestimate how competitive the U.S. market is.
Why Some Foreign Businesses Fail In The U.S.
Take for example, salad dressing. In big box stores like Walmart and Target, there can be as many as over 20 brands of different salad dressings, offering as many as 10 different types of vinaigrette and mayonnaise-based sauces each. Combine that with the additional sizes offered and that’s more than 200 options for customers to choose from. And now that stores like Walmart are aiming at more affluent shoppers, and shrinking shelf size, it can be incredibly difficult for new coming and independent brands to earn market space.
At the same time, it’s not any easier for larger businesses, especially the ones who have found success in their domestic countries. The reason? Bigger businesses tend to be more confident about their products and are more likely to underestimate the saturation of the U.S. market. They may have dominated their own domestic market and overtaken the two or three major competitors in their home, but the U.S. is a whole new playing field with bigger and more seasoned players—the Olympics of competitive branding and business.
For both small and large businesses, the secret to successfully competing in the U.S. is to first find out what you don’t know. Minimize your weak points to prevent your business from taking wrong turns and making incorrect business decisions. As foreign investors and business owners, you need to have a clear understanding of the target market and a strategy designed specifically for the American audience. Without one, your businesses will face the dangers of failing.
Succeeding in an oversaturated market is challenging but not impossible. At ReachOut Business Solutions, we’ll help you come up with the right strategies to set your business apart from the competition. Edsel Oliveira has over 20+ plus years of management experience in assisting businesses from all over the world establish and significantly grow in the U.S, particularly with apparel business consultancy. He was influential in introducing famed Grendene footwear brands Rider and Ipanema to the U.S. and can assist in transferring your foreign business to the United States.
