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Article
A Snapshot of Today's North American Tech Landscape
Stu Kelly, MD of N.America at Think & Grow provides insights for founders looking to expand into the market.
The North American tech landscape is undergoing significant transformations, presenting both opportunities and challenges for businesses aiming to establish or expand their footprint in this dynamic market. Understanding these shifts is crucial for effective market entry and sustained growth.
Investment climate: A shift toward sustainability
“From an investment perspective, the ecosystem remains strong, but there’s a clear shift toward profitability and sustainable growth over hyperscaling. Solutions that boost productivity and reduce costs are resonating with investors.” - Stu Kelly, MD of N.America at Think & Grow
Notably, U.S. tech giants are projected to invest approximately $302 billion in AI infrastructure in 2025, significantly outpacing the $51 billion anticipated from their Chinese counterparts. This substantial investment underscores a commitment to long-term technological leadership and profitability. [1]
Strategic market entry: The importance of niche focus
“There are many niche markets where you can succeed, so understanding your target segment is crucial.” - Stu Kelly, MD of N.America at Think & Grow
Approaching North America as a homogeneous entity is a common misstep. The region comprises diverse niche markets, each with unique consumer behaviors and preferences. Success hinges on identifying and understanding these segments to tailor offerings effectively. For instance, while some areas may exhibit a high demand for cutting-edge AI applications, others might prioritise data security and privacy, necessitating a customized approach to product development and marketing.
Navigating intense competition
“The competition is fierce—not only are there many local players, but also global competitors who have entered the market ahead of you.” - Stu Kelly, MD of N.America at Think & Grow
Companies such as Amazon, Google, Microsoft, and Meta continue to dominate, leveraging extensive resources and market influence. Entering this market requires a compelling value proposition and strategic differentiation to capture attention and market share.
Regulatory complexity: A state-by-state challenge
“The U.S. has state-by-state differences that can be complex. Having a solid plan and understanding why the U.S. is the right market for your business is essential.” - Stu Kelly, MD of N.America at Think & Grow
For example, California has implemented stringent privacy laws, including requirements for browsers and mobile systems to feature an “opt-out preference signal,” allowing users to easily decline data sharing. Conversely, other states may have less rigorous regulations, creating a fragmented compliance landscape. Developing a comprehensive understanding of these state-specific requirements is essential to ensure compliance and mitigate legal risks. [2]
Execution excellence: People, processes, and planning
Successful market entry and expansion demand meticulous planning, the establishment of robust processes, and the engagement of experts in scaling into these regions. This encompasses everything from market analysis and strategic planning to operational execution and continuous performance evaluation. Building a team with local market expertise can provide invaluable insights and facilitate smoother navigation of the North American tech ecosystem.
Partner with Think & Grow for strategic growth
We specialise in driving new market entries and go-to-market (GTM) executions. Our Growth Diagnostic Workshop is designed to assess your current capabilities, identify opportunities, and develop tailored strategies for sustainable growth in the North American tech market. Partner with us to navigate the complexities of this dynamic landscape and achieve your business objectives with confidence.
References;
1 https://www.barrons.com/articles/amazon-stock-ai-meta-alibaba-01f7e10b?utm_source=chatgpt.com