Entry into new and unfamiliar markets can stretch resources and expose a company to unexpected risks, which might not only thwart a successful market entry, but damage a company’s global reputation.
Kroll can help navigate the unchartered territories by anticipating risks and providing guidance. Kroll has been helping clients build profitable businesses in challenging markets for 40 years. Using our preeminent source network, Kroll provides greater depth of analysis and insight than is available only through publicly available sources.
We have an unmatched understanding of the information that is accessible in-country, its relative accuracy and reliability and the frequently delicate balance between politics and business.
Our framework for conducting market entry strategy is based on our unique access to relevant information. We focus on mapping the competitive landscape, identifying and reviewing potential partners, and assessing political, societal, economic and operational risks. In some markets, the influence of criminal elements or unethical practices can significantly hinder a company’s ambitions, causing long-term financial and reputational damage. Our local experts have the knowledge and insight to identify potential links between a planned investment and illegal elements. Once the risks are identified, we will work with the client to develop operational procedures to manage them.
Case Study: Foreign Direct Investment for Asian Bank
An Asian bank sought to expand its project finance profile with a $1 billion loan to a natural resource company with a significant project in an emerging market. Apart from concerns about the borrower’s reputation and how this might constrict the bank’s ability to syndicate the loan, the lender was also concerned about the local government’s attitude to foreign direct investment. Kroll found that while the borrower’s past would not restrict the bank’s options, the domestic political environment in the borrower’s country was far more hostile than the lender had anticipated, resulting in a change to loan terms and covenants.
Case Study: Potential Threats to a Business in India
Kroll was engaged by an Indian client to assess the risks associated with operating a recently acquired facility in a remote part of India. Kroll engaged academics, local officials and other experts to understand the societal drivers, demography, ethnic and religious make-up, and the interaction between policy makers, the media, and civil society. The resulting report provided the client with a deep and sophisticated analysis of key operational risks and guidance on how to set up labor and community relations to support its operations.