In an increasingly complex global environment, companies may need to reassess the merits of doing business in certain foreign markets.
Increasingly, companies are revisiting their presence in foreign markets, and often concluding it’s time to exit. The reasons for a country exit vary, but they include rising operating complexity, supply-chain issues, margin pressure, and disruptive geopolitical events. Leaving foreign markets, however, can be a challenging process. How do you decide if it’s time to exit?
In a new KPMG report, Rethinking global footprint: Time to exit some markets?, we look at why companies choose to exit countries and for those considering it, propose a framework for evaluating a potential departure. In each case, a company must undertake thorough market and product evaluations, and then in executing the exit it must make detailed plans to minimize disruptions and unintended consequences.