The Middle East, North Africa and South Asia (MENASA) has been one of the world’s booming regions in recent years. MENASA recorded a combined GDP of USD 8.3 trillion in 2012, achieving a growth rate of more than 3.5 percent over the previous year. With sustained long term growth plans and the anticipated revival of the global economy, the combined GDP of MENASA is expected to reach USD 12.3 to 12.8 trillion by 2022-23.
Frost & Sullivan’s Mega Trends envisage significant opportunities in MENASA across key sectors such as Infrastructure Development, Power and Water, Real Estate, Oil and Gas, Manufacturing and Healthcare by 2022-23.
“The combination of numerous countries and lack of availability of relevant information can leave companies with a daunting task of how to approach their expansion plans. While “how” is the biggest question that is generally asked, a better starting point is “where”. The specificities of regions, countries, and even markets within countries mean that the entry strategy generally needs to be customized to the strategic needs of the client.”
Frost & Sullivan with its in-depth research and analysis helps organizations in identifying and making their strategic growth moves.
Frost & Sullivan recommends a Five-Stage pragmatic prioritization model for geographic expansion.
Stage I — High Level Prioritization: External Analysis of geographies based on macroeconomic variables and filtering potential markets based on high level metrics
Stage II — External Filter: In-depth analysis of markets identified for maximum returns
Stage II — Internal Analysis: Identifying Internal Capabilities and understanding change readiness before developing an expansion plan
Stage IV — Gap Analysis: Analysis of Gaps between available and required Resources and Capabilities for new market entry
Stage V — Strategic Roadmap: Key Milestones and Timing of Entry into prioritized markets
The above model prioritizes markets based on the opportunity size with minimal risk balanced against management capacity, resources, and a rigorous risk mitigation strategy, thus ensuring maximum returns on efforts and investments. Frost & Sullivan endorses a structured and insights-based evaluation of growth and expansion options, as the right approach for leveraging MENASA’s as yet untapped, USD 10 Trillion cross-industry opportunity.