Entering a new market is a major decision for any B2B business. The right market entry strategy can drive growth, open new revenue streams, and strengthen your brand. The wrong approach can waste resources and damage your reputation. At White Space Strategy, we help clients weigh their options and select the strategy that fits their goals, capabilities, and the realities of the market.
Below, we break down the main market entry options, share lessons from real-world launches, and outline how to tailor your approach for success.
Understanding Your Options: Build, Buy, or Partner
Most B2B market entries fall into one of three categories:
- Build (Direct Entry): Set up your own operations, sales, and delivery in the new market. This gives you the most control over your offer, direction, and revenue. It can also be slower and require more investment.
- Buy (Acquisition): Acquire or invest in a business already active in your target market. This is often the quickest route to market, letting you tap into existing customers and infrastructure. It comes with the challenge of integration and higher upfront costs.
- Partner: Work with a local or established player. This can be a joint venture, licensing, or distribution agreement. Partnerships can offer a balance of speed, risk, and local knowledge, but require careful management to align interests.
Each approach has its own strengths and risks. The best choice depends on your ambitions, resources, and how you want to engage in the market.
Key Factors to Consider
Before choosing your entry strategy, take time to understand:
- Customer Needs and Preferences: What do buyers in the new market value? Are there local requirements or preferences you must address?
- Regulation and Compliance: Are there legal or regulatory barriers to entry? What certifications or approvals are needed?
- Supply Chain and Distribution: How will you deliver your product or service? Are there reliable partners or infrastructure?
- Competitive Landscape: Who are the main players? What are their strengths and weaknesses?
- Your Own Capabilities and Ambitions: What are you willing to invest? How much control do you want? What is your risk appetite?
A thorough assessment of these areas will help you avoid costly mistakes and set realistic expectations.
Lessons from Real-World B2B Launches
1. Build: Salesforce’s Country-Specific Expansion
Salesforce’s international growth shows the value of adapting your direct entry approach. As Salesforce expanded, it invested in localising its platform for each country—developing grammar engines and custom interfaces to meet local language and regulatory needs. This helped maintain a consistent brand while respecting local differences, supporting strong growth in new markets.
2. Buy: Oracle’s Acquisition of Cerner
Oracle’s acquisition of Cerner, a health IT company, allowed Oracle to quickly enter the healthcare vertical with an established customer base and expertise. This move gave Oracle a strong foothold in a new sector but also required careful integration to ensure the combined business delivered value.
3. Buy: Microsoft’s Acquisition of Nokia
Not all acquisitions deliver the desired results. Microsoft’s purchase of Nokia aimed to boost its smartphone business, but a mismatch in technology and market fit led to a costly write-off. This highlights the importance of due diligence and ensuring the target aligns with your strategy and capabilities.
4. Partner: Google and GE’s Smart Appliance Collaboration
Google and GE partnered to combine cloud computing and appliance expertise, creating a new offering in the smart home market. This partnership allowed both companies to reach new customer segments without the need for full-scale investment in new infrastructure.
Tailoring Your Approach
There is no single “best” market entry strategy. The right choice depends on your goals, the market context, and your own strengths. Some companies start with a partnership to learn the market, then move to direct entry or acquisition as they build confidence. Others may pursue multiple strategies at once in different segments.
Tips for Success:
- Invest in local market research before committing.
- Be clear about your goals and risk tolerance.
- Align your entry mode with your resources and capabilities.
- Plan for integration and change management if acquiring or partnering.
- Review and adapt your strategy as you learn more about the market.
Key Points to Remember:
- Most B2B market entries are build, buy, or partner—each has pros and cons.
- Deep understanding of the market and your own business is essential.
- Real-world examples show the value of adapting your approach and learning from others’ successes and failures.
- Tailor your strategy to your goals, capabilities, and the realities of the market.
If you need support with choosing the right market entry strategy, White Space Strategy is here to help. We specialise in market entry strategy, opportunity identification, competitor analysis, and more. Get in touch to discuss how we can support your next move.