New Market Entry Strategy Consulting (released May 2013)

Research Summary
New market entry is back! However, there are only a few viable frontiers left, and clients are much more risk averse. That said, although New Market Entry is an inherently volatile consulting competency, the confluence of resources and incentives inside companies and their core markets together with developments in the external environment has, in fact, produced strong and stable growth in engagements. With these and other factors in mind, Kennedys new research details key capabilities among top firms in New Market Entry Strategy, a consulting specialty that consists of devising new ways to sell to new customers, launch new products, and sell in new geographic regions. MARKET TRENDS looks at the trends and factors affecting growth for services, including client demand plus the What, Why, Where and How of the crowded New Market Entry Strategy consulting marketplace. Kennedy analysts portend that growth is set to persist throughout the forecast period. Fueled substantially by rise of the middle class in emerging markets, consulting engagements are concentrated in these parts of the world, along with nearby advanced economies that benefit from spillovers and synergies. Similarly, the distribution of activity across industries reflects the ultimate source of new demand created by emerging market middle class consumers. And, although companies are not making a lot of big bets on new markets, they are taking a more cross-functional and systematic approach to the ones they do make. Instead of dabbling in premium segments of lots of emerging markets, the objective is to dominate niches and garner meaningful scale in mass segments in select new markets. The report also clearly illustrates each New Market Entry Strategy consulting firms core competencies, strengths and weaknesses, while providing detailed analysis across client industries and geographic regions. New Market Entry Strategy is an exclusive 130page report supported by over 75 data-rich tables and charts.

With the slow economic recovery, the imperative to enter new regions, devise new offerings, and penetrate new customer segments is driving companies to reach out to consulting firms for the analytical foundation as well as an unbiased perspective around these opportunities and the steps they need to take to effectively capitalize on them. Mike Jennings, Director, Bridge Strategy

Example: The New Market Landscape

Source: New Market Entry Strategy Consulting; Kennedy Consulting Research & Advisory

For details, please contact your Kennedy Client Service Leader at +1.603.357.8102 or e-mail research@kennedyinfo.com.
Notice: No part of this publication may be reproduced, stored in a retrieval system or transmitted by any means, electronic or mechanical, without the prior written permission of Kennedy Information, LLC, a Bloomberg BNA business, Keene, NH USA.

2013 Kennedy Information, LLC

New Market Entry Strategy Consulting

Client Spending and Competitive Landscape
CLIENT SPENDING TRENDS AND FORECASTS details the size of the New Market Entry Strategy consulting market and its projected growth. This section slices the market by client industry and key geographic region, and includes valuable data on current challenges and timely growth opportunities. The research is organized by: Key Geographic Region Advanced Asia BRICs (includes Brazil, Russia, India, and China) Europe North America Other Emerging Markets Client Industry Aerospace and Defense Communications and Media Financial Services Healthcare ManufacturingProcess ManufacturingDiscrete Natural Resources and Power Transport and Logistics Wholesale and Retail Other Industries THE COMPETITIVE LANDSCAPE features in-depth analysis of the market and its leading players by consulting segment/ provider focus, service capabilities, and areas of expertise. It includes rankings of the top consulting practices. Additionally, the full study provides clients with expert perspective on the relative strengths and weaknesses, and go-to-market strategies of these providers. In terms of the strategic and service orientation of their new market entry offer, findings show that firms favor one of four dispositions: Achieve process excellence Transform the business model Reinvent the core Strengthen the core Although none of these dispositions is inherently better than another, they lead firms to identify different opportunities and pursue different approaches to capitalize on them. And they correspond to different capability strengths. Client companies are therefore well served to enter into an engagement with their eyes open to their consultants disposition, and whether or not it aligns with their own. PLUS The Kennedy Vanguard of New Market Entry Consulting Providers, featuring the strongest consultancies, assessed on relative breadth and depth of firms capabilities within the overall service area Client Project Summary: Evaluating New Market Entry Opportunity in China Client Project Summary: Evaluating Existing and New Vertical Market Opportunities Client Project Summary: Evaluating Business Partners for New Market Entry Into Burma Consulting Provider Profiles, detailing key service strengths and weaknesses, firm approach to New Market Entry, AND Capability Maps illustrating each practices standing with respect to New Market Entry Strategy consulting by: Market Strategy Segments, Industries, and Geographies Customer Strategy Entry Strategy: Organic, M&A, and Other Operating Model: Governance, Operations, and Supply Chain Government Affairs Risk

Example: Kennedy Vanguard of New Market Entry Consulting Providers

Advancing Service Breadth or Depth Neutral Diminishing Service Breadth or Depth

High

17 Practices neutral

Depth of Consulting Capabilities

4 Practices Advancing

24 Practices Rated in Total

3 Practices Diminishing

Low

Low

Breadth of Consulting Capabilities

High

Source: New Market Entry Strategy Consulting; Kennedy Consulting Research & Advisory

For details, please contact your Kennedy Client Service Leader at +1.603.357.8102 or e-mail research@kennedyinfo.com.
Notice: No part of this publication may be reproduced, stored in a retrieval system or transmitted by any means, electronic or mechanical, without the prior written permission of Kennedy Information, LLC, a Bloomberg BNA business, Keene, NH USA.

2013 Kennedy Information, LLC

New Market Entry Strategy Consulting

Provider Profiles
PROVIDER PROFILES OF SELECT NEW MARKET ENTRY STRATEGY CONSULTING PRACTICES profiles the consulting firms featured in this report complete with key statistics, core competencies, geographic presence, areas of client focus, specific capability strengths, and competition intensity. The following firms are featured in this research:
Accenture A.T. Kearney Bain & Company BearingPoint The Boston Consulting Group Booz & Company BowerGroupAsia Bridge Strategy Camelot Capgemini Deloitte Ernst & Young Grant Thornton IBM Innosight Kurt Salmon L.E.K. McKinsey & Company Oliver Wyman Group PwC Roland Berger Strategy Consultants Simon-Kucher & Partners

KPMG

Technomic Asia

Example: Firm Approach to New Market Entry

Firm Focus Inward Outward

Functional

Industry

Source: New Market Entry Strategy Consulting; Kennedy Consulting Research & Advisory

Example: Provider Capability Strengths

Legend:

Very Strong

Strong

Moderate

Weak

None

Provider Capability Strengths: New Market Entry Strategy Goverment Affairs Customer Strategy

Operating Model Governance

Operating Model Operations

Operating Model Supply Chain

Market Strategy Segments

Market Strategy Industries

Market Strategy Geographies

Entry Strategy Organic

Entry Strategy M&A

Entry Strategy Other

Multi-service Firm 1
Source: New Market Entry Strategy Consulting; Kennedy Consulting Research & Advisory

For details, please contact your Kennedy Client Service Leader at +1.603.357.8102 or e-mail research@kennedyinfo.com.
Notice: No part of this publication may be reproduced, stored in a retrieval system or transmitted by any means, electronic or mechanical, without the prior written permission of Kennedy Information, LLC, a Bloomberg BNA business, Keene, NH USA.

2013 Kennedy Information, LLC

Risk

New Market Entry Strategy Consulting

Table of Figures
Figure 1: Destination of US Foreign Affiliate Sales, 2010 Figure 2: Gross Fixed Capital Investment Figure 3: Non-Financial Corporate Gross Operating Margin Evolution Figure 4: The New Market Landscape Figure 5: US Food and Beverage Industry Figure 6: FDI Inflows by Region Figure 7: Cross-Border M&A by Region of Purchaser Figure 8: The New Market Entry Strategy Continuum Figure 9: The Market and Customer Strategy Funnel Figure 10: Value of Cross-border M&A and Greenfield FDI Projects Worldwide Figure 11: New Market Entry Capability Portfolio Figure 12: The Entry Strategy Continuum Figure 13: Penetration of Digital Technologies, 2011 Figure 14: Governance Models Figure 15: New Market Entry Strategy Consulting Client Spending and Growth Forecast, 2012-2016 Figure 16: New Market Entry Strategy Consulting Client Spending Share by Industry, 2013 Figure 17: New Market Entry Strategy Consulting Client Spending Share by Geographic Region, 2013 Figure 18: New Market Entry Strategy Consulting Provider Revenue Figure 19: New Market Entry Strategy Consulting Segment and Provider Examples Figure 20: New Market Entry Strategy Competitive Landscape by Client Sponsor Figure 21: New Market Entry Strategy Representative Competitive Landscape by Function and Service Figure 22: New Market Entry Strategy Consulting Provider Strategic and Service Disposition Figure 23: New Market Entry Strategy Consulting Peer Group Capability Relative Strengths Figure 24: Kennedy Vanguard of New Market Entry Strategy Consulting Providers Figure 25: Provider Capability Strength Descriptions PLUS Provider Service Capabilities Map for each profiled firm

Methodology
Kennedy Consulting Research & Advisory has been researching the management and IT consulting industry for more than 40 years. Kennedy studies the global consulting marketplace at multiple levels. The resulting research assists buyers of consulting services in effectively targeting best-in-class providers. The market analyses also assist consulting providers in identifying and evaluating business opportunities. The groups proprietary research methodology comprises four components: Extensive interviews with consulting practice leaders, financial analysts, consulting clients, and client-side industry experts Data and background material from Kennedys proprietary library of research on the consulting industry and individual firms Quantitative data collection from primary and secondary sources Key economic data relevant to the sector(s) being analyzed The groups long-term relationships with consulting clients and industry leaders are based on trust and respect. Kennedys fundamental goal is to deliver objective assessments and insightful viewpoints on the management and IT consulting market.

For details, please contact your Kennedy Client Service Leader at +1.603.357.8102 or e-mail research@kennedyinfo.com.
Notice: No part of this publication may be reproduced, stored in a retrieval system or transmitted by any means, electronic or mechanical, without the prior written permission of Kennedy Information, LLC, a Bloomberg BNA business, Keene, NH USA.

2013 Kennedy Information, LLC

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For details, please contact your Kennedy Client Service Leader at +1.603.357.8102 or e-mail research@kennedyinfo.com.
Notice: No part of this publication may be reproduced, stored in a retrieval system or transmitted by any means, electronic or mechanical, without the prior written permission of Kennedy Information, LLC, a Bloomberg BNA business, Keene, NH USA.

2013 Kennedy Information, LLC