The strategic use of service design tools
Service design tools add customer-centered and holistic insights are factors that differentiate the market entry strategy from traditional ones. Regardless of the market of entry, learning about customer needs, values, and habits are crucial factors determining a newcomer brand’s success. Further, the strategic use of service design tools to develop a market entry strategy will be explored.
The strategic use of service design tools
With the internationalization of small and medium companies becoming more important to scale up, creating products and services that would be as suitable to the target audience as possible is crucial. Since the needs and expectations of consumers are evolving continuously, companies cannot rely on ”one size fits all” offers. Especially when it comes to the company’s internationalization and export management process, which is aimed at the Scandinavian market. Therefore, the author firmly believes that applying service design tools to market entry strategy can significantly improve a company’s success in the Scandinavian market.
How to create a winning market entry strategy?
First, the company needs to figure out its priorities. That can be done by asking themselves which countries will respond best to their products or services. Furthermore, it should be considered how they will intend to provide these through buying products or working with overseas manufacturers. Finally, it should be decided how much control the business wants over the new market. Are they willing to work with a partner or want to make the new venture independently?
Next, it should be researched how the target market is operating internally and externally. Local restrictions should be checked to operate and examine the cultural landscape. This affects how the business can distribute their products and help determine if there is a consumer base.
Set realistic goals backed by action
Furthermore, the business is advised to try to set clear goals, including firming up the timelines and revenue expectations. It is suggested to be realistic about the budget and set actionable tasks that will help to step forward. Then, the next step is pointed out to be to consider the market entry methods that will work for the business. In fact, the business is advised to understand their finances and whether they need an investment or loan to prepare for the market entry. Furthermore, the insurance of a business is an important factor to consider before proceeding to further business activities.
How can strategic use of service design tools create the added value to market entry?
The latest tendencies and patterns have shaped the direction differently by inviting the users to become co-creators. The traditional practices consider a customer to be a passive buyer who consumes the products and services. On the opposite, the proactive view perceives a customer as a co-creator who actively takes part in the value-creation process. Various case studies show the importance of conducting research before introducing new products.
Managers tend to talk more about business value, while teams most likely refer to customer value. It is common to experience that different actors in the organization are debating over values and priorities. To know if the value has been delivered is if there are changes in consumer behavior leading to better results. Once the brand puts an effort to make the customers more satisfied, they are delivering value to them.
Preparation is part of a successful market entry
The research shows that being prepared before entering a new foreign market is a significant criterion to further success. Without market research and understanding, the brand is risking time, financial resources, and brand image.
The focus of the thesis was to apply service design tools in practice to develop a strategy to enter Finland. For example, empathy map, value proposition canvas and business model canvas were utilized. Also a user persona was created to find out the target group. A step-by-step guide was drafted and a proposal of a service blueprint as a potential core for the strategy development. More about the case study, the strategic use of service design tools and commissioner can be found here.
Lieplapa, M. 2023. THE STRATEGIC USE OF SERVICE DESIGN TO ENTER THE MARKET OF FINLAND: CASE PLŪKT. Master’s Thesis, Turku University of Applied Sciences.
Picture: Mãra Lieplapa.