The evaluation plot is a strategic tool designed to assess and compare potential markets across two key dimensions: Good Fit for the Business and Time to Market. Each market is scored across twelve criteria on a scale from 1 to 5, where higher scores indicate stronger alignment or faster market entry capability. This tool provides a clear, visual way to prioritize markets for expansion based on their potential and readiness.
Before scoring markets, define which countries or regions you are evaluating. This tool compares multiple markets to help you prioritize where to expand—so your insights are only as strong as your preparation.
What to Do:
- Select 2–5 markets for comparison.
- Check for trade agreements with your country via EFTA Trade Network.
- Decide if you are evaluating based on actual interest, available network, or pure opportunity.
Gather Data from Trusted Sources:
- Industry insights: IBISWorld → Industries → Country/Region, Statista
- Regulations & rules: EU Points of Single Contact, SelectUSA (for U.S.)
- Economic comparison: WorldData.info
- Cultural comparison: The Culture Factor Tool, Erin Meyer’s Country Map
- Competition check: Use Google, LinkedIn, and market-specific directories
Don’t forget customs and trade rules. When evaluating international markets, it is essential to understand customs rules and import/export regulations, especially if your business involves shipping physical products, hardware, promotional materials, or equipment. Even for software and services, some countries apply digital service taxes or data transfer regulations that may affect your entry plan.
To check customs agreements and duties between your country and potential markets, start with:
- The EU Access2Markets portal for customs duties, taxes, and trade barriers in EU countries
- The country’s official customs or trade ministry site for global markets (search: “Trade with [Country] site:[.gov or .go].[cc]”)
- World Trade Organization (WTO) Trade Profiles for summaries of customs frameworks
If you are unsure whether customs rules apply to your offer, check both “goods” and “services” categories in trade portals.
Checklist:
Identify Market Strengths and Challenges:
Look deeper into the individual criteria to uncover specific strengths and weaknesses. For example, a market may score highly in innovation openness and revenue growth potential but lower in regulatory complexity, indicating that while the market has growth potential, navigating local laws might require additional resources or time.
Interpret & Connect the Dots:
Now, bring it all together. Don’t just look at data in silos—start asking strategic questions:
- How well do innovation trends align with the culture’s openness to change?
- Do simple business rules match a warm attitude toward newcomers?
- Are living costs so high that there’s less disposable income for what you offer?
Prioritize Market Entry:
Use the combined insights to rank your markets based on their readiness and strategic fit. Focus on those with high scores in both dimensions for initial entry. Markets with a good fit but longer time to market may require investment in areas like regulatory expertise or partnerships to expedite the process.
Inform Strategic Actions:
Leverage the evaluation tool to make data-driven decisions. For example, in a market with high Good Fit but moderate Time to Market, consider using local partnerships to accelerate entry. Conversely, a market with high Time to Market but lower Good Fit might require product adaptations or a more focused approach.
Continuous Refinement:
The evaluation tool should be a living tool. As market conditions, regulations, or customer needs evolve, update the scores to ensure your expansion strategy remains aligned with current realities and opportunities.
Use the Tool:
Score each country on all 12 criteria (1–5). When you’re done, your results will be visualized in two dimensions:
- Good Fit for Your Business
- Time to Market
Evaluate Individual Criteria:
Begin by analyzing the scores for each criterion under both categories. High scores (4-5) suggest strong alignment with your business needs or minimal barriers to entry, while low scores (1-2) indicate challenges such as cultural misalignment, regulatory complexity, or logistical issues.
By systematically evaluating markets through this framework, you can efficiently allocate resources, anticipate challenges, and maximize your chances of successful and timely expansion. Whether you are targeting rapid growth or strategic long-term positioning, the evaluation tool offers a clear and adaptable approach to making informed decisions.
Optional Deep-Dive:
Try a CAGE Analysis (Cultural, Administrative, Geographic, Economic distance) to complement your evaluation and spot hidden risks.
Q: How exact should my scores be?
They don’t need to be perfect. This tool helps visualize direction, not guarantee outcomes. Think: “strong signal” vs. “weak signal.”
Q: Can this be used for all industries?
Absolutely. Just interpret the 12 criteria through the lens of your industry.
Q: What if a market scores high but I have no network there?
You may still want to pursue it but flag it for longer ramp-up and explore partnership strategies or test campaigns first.