Market Entry Strategy
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Best practices for market entry strategies encompass the following:
- Secure an agent, representative, or distributor in Ecuador. Sales to the Ecuadorian government require the company to have a local representative in Ecuador. Given the small territory, one distributor often suffices. Focus on formality, personal relationships, and trust when negotiating agreements and contracts.
- Select a law firm early on to have legal support available in different areas like taxes, political/economic analysis, contracts, sanitary registrations, and legal reforms.
- Conduct thorough due diligence to know your partner and understand the market. The U.S. Commercial Service offers a host of services to assist your company with its due diligence process.
- Communicate with the Commercial Unit of the U.S. Embassy in Quito regarding specific concerns, such as regulatory issues.
- Visit the market often; take advantage of Ecuador’s geographic proximity to the United States and the abundance of flights connecting Ecuador to all regions of North America.
- Recognize that business planning can be a challenge because of frequent changes in Ecuador’s tax, commercial, investment, and economic policies and regulations.
- Attend functions of local business promotion organizations such as the American Chambers of Commerce (AmCham), which number five in Ecuador (Quito, Guayaquil, Cuenca, Ambato, and Manta).
- Keep in mind there are two distinct regions in Ecuador: the mountain and the coastal region. Distinctions among the two regions are highly visible in consumer behavior, personalities, buying patterns, hobbies, and even political ideologies.