Entering a new biogas market can be challenging for project developers or suppliers. Where do you start if you want to offer your products and services, launch new products or participate in projects in a new international or local market? Here are some tips to help you better plan and succeed in expanding into a new market and to avoid its barriers and risks.
Why enter new international or local markets when your business is already so well established in its current one? In addition to growing your business, this decision has several benefits despite its risks and challenges.
For example, expanding into new markets would allow you to:
The first step in establishing your market entry strategy in biogas industry is to identify clear and realistic goals and a targeted market. Why do you want to enter a new market? What potential clients are you targeting exactly?
To do this, you must first analyze the internal resources that you can assign to this project.
Also consider your goals and business opportunities, as well as your products and services. Ask yourself questions like:
In addition, if you are unsure of several target markets, analyze them further to narrow down your list. For example, assess their size, business and political environments, activities, and how they complement the strengths and weaknesses of your business.
According to these factors, which market has the most benefits and the least inconvenience for you? Are the target market and your goals realistic in relation to your internal resources?
Conducting a complete market study is a crucial step to take before entering a new biogas market. Do extensive research and try to get as much information as possible about the market, country or geographical area targeted, including, for example:
The information you find will help you, for example, to better adapt your products, your services or your means of promotion in your market entry strategy. You can find what you need on the internet, at trade shows, at professional associations, local organizations, business network, etc.
The business network plays a leading role in entering a new biogas market, especially internationally. That’s why finding reliable partners that complement your service offering in the target market is good for your business.
In this way, you will have access to new skills, new technologies, and contacts in the targeted market. You can also combine your marketing or distribution efforts. Be careful, however, and do your due diligence when choosing a business partner to avoid unpleasant surprises.
How can you find your next business partner? To start with, attend industry events, network with companies in the targeted market, or join industry associations.
Several entry mode strategies in a foreign market exist, including:
Here are other foreign market entry strategies, according to TradeStart:
Attending industry events is a great way to succeed in entering a new foreign market in biogas by gauging it. Every year, several events around the world gather players in the biogas, bioenergy, clean technology and environmental industries.
This type of event will allow you to:
You can find a list of upcoming events in the biogas industry through professional associations, websites of local organizations and the events calendar on our website.
The Business Development Bank of Canada also offers tips for maximizing your participation in a trade show and finding potential customers.
Several professional associations or local organizations exist in Canada, the United States, and Europe. They can help you expand into new markets in biogas in a number of ways.
We can count, among others:
Find the association of your target market by consulting our directory.
Join these associations and get many benefits:
In general, there are several barriers and obstacles that can hinder your market entry strategy in biogas industry. You must take this into account when planning to expand into a new market to be successful and to protect your position in the market.
Barriers are defined as the benefits and costs of activities that favor competitors already established in the marketplace compared to those attempting to enter. These barriers include technologies, government policies and laws, patents, costs, access to information and licensing.
According to the CFI, the barriers may consist of, for example:
Entering a new international biogas market involves risks. As a project developer or supplier, you need to anticipate the risks associated with the targeted market, quantify them and establish a strategy to avoid their impacts.
According to Forbes magazine, these risks include, for example:
Close monitoring of developments in the targeted country or geographical area or in-depth research will help mitigate these risks.
Entering new biogas markets requires a lot of resources and commitment from project developers and suppliers. However, it is a project with high growth potential for your company.
BiogasWorld can help you realize this potential. Our list of services includes market intelligence reports that meet your needs. These contain valuable information about the specific targeted market(s), including its players, the competition and the technologies offered.
If you encounter specific problems during the development of your project or your business, we can also offer professional support. In addition, members have access to our directory of industry contacts and discounts on events and trade shows. We also promote our members on the web and at trade shows.
Contact us for more information.