In fragmented markets, local execution is essential

The scientific tools and services sector can no longer count on a single, large US market. Growth will be fragmented across regions and to succeed in these local markets, companies will need to fundamentally change in how they operate.

Fragmented markets are costly. They are culturally diverse, structurally complex and full of risk. But they’re also where the growth is going to be. Winning in them will require local execution.

Trust is built locally
In turbulent times, trust matters more than ever. And trust is built locally. Whether you’re navigating procurement in Germany, building partnerships in the UAE, or negotiating in South Korea, local teams bring essential cultural fluency. If you can’t afford local sales and support, then a strategic partner or distributor can provide local understanding.

Agility requires local autonomy

Local markets move fast, regulations change and funding priorities evolve. Keeping track of all of these things centrally is difficult and risks losing the local colour and context that make them meaningful. In-country teams need real-time decision making on things like pricing, service models, messaging and so on. Decentralising decision making will give them more autonomy to respond in ways that their markets demand.

Design a blended operating model
Serving multiple geographies is costly. The answer is designing the right blend of centralised, local and hybrid activities. Centralise functions that benefit from scale and standardisation like IT infrastructure, marketing strategy, content creation and back-office operations. Decentralise functions that need cultural insight and market responsiveness, such as sales, field service, local marketing execution and compliance.

Digital tools make hybrid models viable for activities like virtual training, remote onboarding and tiered customer support (e.g. initial queries are handled centrally while escalating complex issues to local specialists) to extend central services without compromising local impact.

Companies that operate centrally will struggle to succeed across geographies. The regulatory, logistical and cultural complexity will overwhelm them and they will struggle to win sufficient local customers. Those who make local execution a priority and put experienced people on the ground to lead it are more likely to succeed.