Choosing a target market is the first and most important decision in expansion, because it determines the cost, the speed and the likelihood of success. It is worth assessing several criteria at once: the size and growth of demand for the given product, purchasing power, the intensity of competition, linguistic and cultural closeness, logistical accessibility, and the complexity of legal requirements. For Slovak companies, the Czech Republic tends to be the natural first step because of linguistic closeness, but this also means high competition, including from domestic players. The decision can be significantly improved with data – search volume in the given language, competitor analysis, and a test campaign with a small budget. It is sensible to choose one market, see it through, and only then add another, since expanding into several markets at once spreads a smaller company's capacity too thin.
See also: Market testing before entry, Competitor research in a new market, Domain Strategy for Markets.
