Do we need to include the ‘Capabilities’ bucket if the company wants to enter a new country with the same business model as in its home country? Obviously, the company(retailer) already knows how to perform its operations. However, there might be a lack of expertise in entering new countries, difficulties with suppliers and cultural fit. Those gaps could instead be included in the ‘Risks’ bucket..
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Hi,
Even if the business model is proven at home, I’d still include a Capabilities bucket but frame it narrow around transferability to the new market. The Risks bucket then captures external uncertainties beyond the company’s control. This way, we ensure we assess both what the company can bring and what could still go wrong.
Happy to further discuss!
Best,
Lukas
Hi there,
Good question! This comes up often when candidates think about market entry cases. The short answer is that you don’t always need to create a separate “Capabilities” bucket, but you do need to make sure the analysis covers whether the company can successfully execute the expansion. The interviewer is less concerned with which title you choose for the bucket and more with whether you’re thinking holistically about feasibility.
If the company is simply replicating an existing model, many operational capabilities are indeed already proven. However, when moving into a new country, there are usually capability-related gaps that matter: local supply chain setup, regulatory knowledge, brand adaptation, or partnerships. These can be framed either under “Capabilities” or under “Risks,” depending on how you want to structure your framework.
Best of luck!
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