26 Dec 2022

Why Companies Should Undertake Policy and Regulatory Research Before Entering New Markets 

Policy and regulatory research are important steps if you’re looking to enter a new market. 

Entering new markets opens the door to exciting opportunities such as massive sales boosts and strengthening a brand. 

But it also comes with risks. Market research before entering new markets allows brands to navigate these risks by giving them access to the right information at the right time. 

Countries all vary in the way they regulate businesses. Cultures, politics, and regulations will likely differ from current markets. 

So, policies that work in one market might not work for another. Thus, policy and regulatory research ensure that a business is ready to enter a new market.

Importance of Policy and Regulatory Research Before Entering New Markets

Companies that blindly leap into new markets could end up breaking local regulations or alienating the new market’s culture. 

Here are some ways that policy and regulatory research helps your brand navigate this process and ensures successful entry into new markets.

Research Helps Design Market Entry Strategies

Designing the right entry strategies is heavily influenced by the target market. Research ensures you go into this process with the right information to align your entry strategies with the new market. 

Regulations change so rapidly that many companies miss the mark on their entry strategies and end up with a strategy that isn’t compatible with the new market. Thus, they devote even more resources to pivoting their strategy on the fly.

Policy and regulatory research ensure that you start with the right strategy and avoid making expensive revisions.

Differentiate Between Market Regulations

What is acceptable in one market might be considered unethical in another. 

Market entry research identifies these differences so you can develop the right policies. For instance, you might be accustomed to payment regulations in one market, but they might differ in a new market. 

If you’re not careful, you could unknowingly break those regulations and pay fines. 

Research identifies these key differences ahead of time so you can roll your products into a new market without making costly mistakes.

Mapping Technology, Data, and Security Protocols

Markets also have different security risks and data protection requirements. Businesses need to research these before entering a new market so they know what security protocols must be established beforehand. 

Cyber security will continue to grow and change over the coming years, so businesses must also understand the different requirements between markets. Fortunately, regulatory policy research ensures access to this vital data.

Product and Service Quality Compliance

Every market has a different screening process to ensure quality for new products and service distribution. 

Market entry research provides your company with the exact processes a new market uses. Thus, you can ensure that your policies are optimized to ensure your products and services remain compliant.

Cost-Efficiency and Sustainability Feasibility

A business needs to examine the feasibility of entering a new market. 

Not every market is sustainable for your organization. For instance, certain markets regulate the addition of certain products and services by creating a high barrier to entry.  

Specifically, they want certain industry entrants to be large companies, so they add regulations to keep out smaller businesses. 

Policy and regulatory research help businesses determine whether a new market is sustainable.

Match HR Policy Expectations

Business leaders often relocate members of their existing teams when entering a new market. This is done to ensure the transition goes smoothly. 

However, each market contains unique elements, so these relocated team members must have the experience to meet these challenges. 

Furthermore, they must be able to represent the new market’s demographic appropriately. 

This research also carries over into the hiring process. Understanding the local market’s culture and expectations help with hiring and retaining new workers.  

How to Conduct Policy and Regulatory Research

This complex process can be demanding, even for large corporations. If it’s difficult for companies with ample resources, imagine how overwhelming it would be for a smaller business to transition into a new market. 

Legal counsel and consultation are essential. But they are also expensive to employ in-house, especially if you plan to enter a foreign market.

Fortunately, smaller companies can partner with a market entry research provider like Research Optimus. Research service providers assist in designing sound marketing and investment strategies for entering new markets. They help organizations navigate grueling entry barriers by ensuring they have the right market entry policies.


Policy and regulatory research are among the most significant challenges when entering a new market. Fortunately, partnering with a reliable research firm is a cost-efficient way to develop intuitive strategies that meet all regulations for market entry.

Research Optimus provides comprehensive market research for entry-level transitions into new markets. These legal and regulatory reports ensure that your new business avoids regulatory policy issues.

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