Unlocking Peru’s Mining Potential: A Market Entry Success Story
The Challenge
A mid-tier mining company with operations in North America sought to expand into Peru’s copper-rich regions in 2023. Despite the country’s $5.3 billion domestic procurement market, the client faced formidable barriers to entry. Local suppliers dominated certain service categories, regulatory requirements were complex, and established global mining companies had already secured key relationships with first-tier suppliers.
Our Approach
We conducted a comprehensive analysis of Peru’s mining value chain, identifying specific entry points where our client could leverage its strengths. Rather than competing head-on with entrenched players, we developed a strategy that capitalized on location-specific advantages:
- We mapped the competitive landscape, revealing that while Peruvian suppliers were present across many activities, their volumes remained limited with no strong area of focus.
- We identified opportunities in specialized services and niche capital equipment where proximity to operations would provide a competitive advantage.
- We facilitated strategic alliances with local metalworking firms that had the flexibility to adapt to specific geological conditions not catered to by mass-market providers.
The Outcome
Within 14 months of implementing our strategy, the client successfully established operations in Peru’s mining sector, exceeding initial production projections by 30%. By positioning themselves as providers of specialized solutions for location-specific challenges, they avoided direct competition with global giants while building valuable relationships with local partners. The company has since expanded its footprint and is now exploring additional opportunities in neighboring regions.