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ENTER THE US RAIL MARKET

Combined with our international experience, United Rail’s extensive US rail market background ensures a successful market entry for foreign companies looking to expand here. Because our exclusive focus is on rail alone, we understand the challenges and barriers unique to the business. We also provide support in ‘Buy America’ or ‘Buy American’ issues as they relate to publicly funded projects. United Rail will support you in establishing a market entry strategy tailored to your business needs and goals.

The keys to a successful market entry are: gaining an understanding about how to overcome US market resistance, avoiding critical strategic and tactical errors, successfully demonstrating commitment to the market, developing relationships with key decision-makers in the industry, and establishing trust with American customers. A review of independent research conducted by several institutions say the withdrawal (failure) rate when international companies try to enter on their own to the US rail market is estimated to be up to 65%. Together with our own experience, their responses have helped us further identify and pinpoint reasons European companies so often encounter difficulties entering and staying in the United States.

Some of the key reasons include:

Selection of ‘wrong’ partner companies

  • Lack of specific market and domain knowledge
  • US vs. European communication style

Failure to recognize differences in cultural and business environments

Lack of U.S. business intelligence

  • Competitors, customer requirements, pricing, market trends, standards, market entry strategies, etc.

Differences in approval processes between the US and Europe

Unwillingness to invest in US marketing

  • Business development, exhibitions, advertising, sales force, etc.

Risk aversion

  • Lack of understanding of risks associated with the US market
  • Generally too risk averse

Lack of understanding / fear of the US legal system, especially as it relates to
product liability

  • Underestimating the size and complexity of the US market o US is 25-30 x larger than Germany (comparing area)
  • US is 240-250 x larger than Switzerland

Any of these factors, left unaddressed, can lead to either a less successful entry to the US rail market, or to a complete failure in the entire initiative. With the importance of the US market to any company looking to increase its global presence, neither of these outcomes is in any way desirable. United Rail can help ensure your success.

To learn more about Entering the US Market, please contact us.