Finland is part of northern Europe and thus Nordic markets which makes expanding to Finland a lucrative possibility for companies. However, expanding to Finland does not only provide access to Nordic markets but also to the highly-educated workforce. In this blog article, we will explore important aspects that companies should consider when expanding into the Finnish market.
Understanding the Finnish business environment
When expanding to Finland, it is good to seek information about the legislative matters that affect your business operations and whether your operations require a license. It is worthwhile to understand the taxation system, familiarize yourself with labor laws, and recognize the strong standing of labor unions when it comes to settling employee contracts. In addition, it is important to understand the economic cycle to time your market entry effectively.
Establish a proper market research when expanding to Finland
It is a good idea to invest into proper market research when expanding to Finland. It helps you understand the Finnish market and identify potential competition. In some industries, for example, groceries there is only little competition but the market is dominated by a couple of companies. Should you need help with competitor analysis, Katrium offers specific research to help you. Moreover, understanding Finnish culture and business preferences can help you adapt your service model or product line as you expand into Finland. If you need assistance with the market research we can help you with 17 years of experience.
Expanding to Finland requires you to know your partners
In Finland trust is highly appreciated which makes it very important to establish a good relationship with your partners. Having good networks is also essential, as they can help new companies gain insights into the Finnish system. Additionally, these networks can provide assistance when expanding to Finland. It is also a good idea to arrange meetings with company representatives face-to-face as it is valued in Finnish culture.
Create a strategy for brand and entrance
When entering a new market area like Finland, companies should ensure their brands become familiar to the public. This recognition helps people identify the business once operations begin. For example, when expanding to Finland launching an opening event brings visibility in the eyes of the Finns. It helps the arriving company to make people curious. It will also provide an opportunity for the yet unfamiliar company to include themselves into daily conversation topics of potential customers. Nevertheless, it is important to consider who you are targeting. It is also crucial to familiarize the company within the eyes of the target group.
Additionally, it is good to consider the marketing strategy and channels that you choose to utilize as Finns might have diverse expectations on reaching to them in the world of omnichannel. For instance, some customers might prefer social media for receiving information while others utilize Email. The similar phenomenon applies even wider to the context of expanding since approximately 89% of businesses using the omnichannel retain their customers. This means that it is worth consideration when expanding to Finland as well.
Setting goals for the market entry and planning to reach them
Once you have created a strategy for entrance it is easier to consider the goals that you want to achieve with expanding to Finland. You need to create a plan on how these goals can be reached. Planning concrete acts help the employees in successful execution. Moreover, specific key performance indicators or KPIs help you to track the progress and evaluate how the project is succeeding. Otherwise, it might become overwhelming to keep on track with a big project.
Expanding to Finland in conclusion
There are multiple aspects to consider when Expanding to Finland and to succeed in it. In the beginning it is crucial to familiarize yourself with the Finnish business environment and the legislation as well as the high power of labor unions. Additionally, investing in proper market research helps to understand local competition and how to adapt your service model or products for the Finnish customers. Once you have mapped out the business environment and market, it is easier to set the strategy for expanding to Finland as well as define the goals to monitor your progress.
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