Risks of a market entry

1) It's not a bucket so be careful

2) It's embedded across all your buckets

Some random risks:

• The market isn't good
• The market shrinks after we enter
• New entrants come in
• Existing competitors respond
• Government responds
• Government changes rules
• We don't do a good job
• Our market share is lower than expected
• Costs blow up

Some additional questions to ask when considering new market entry:

• What are the barriers to enter for us?
  • Do we have the right competencies/know how/reputation to compete?
  • Is the market fragmented or consolidated?
  • Do we already have the right geographical footprint?
  • Can we grow organically in this market or do we need acquisitions/JVs to catch up with incumbents?
  • Can we comply with all relevant regulations?
• Does the new market entry align with our company strategy?
  • How does the new market factor into our overall strategic objectives (e.g. market share or growth targets, product mix ambitions)?
  • Can we tell a compelling story as to why we think we have a right to play in this market?
  • Do we have the right resources to be successful? If not, can we get them?
  • Can we capture potential synergies by entering?