Is it possible to recommend not entering this market or is that too negative?

Question

concentrated in 3 competitors
require 10% market share to break even
unclear on whether the market size and profit potential are significant to the client
Maybe we should look for alternatives like other geos or new products

Answer 1

Hi there!

You can basically recommend anything as long as you have the right reasons.

If you are unsure about your recommendation it's usually a sign that you don't have enough supporting evidence.

So then what I'd do is state the current hypothesis and higlight what are the areas that you need to look into next in order to validate it.

Best,
Cristian

Answer 2

Hi Dan,

That's absolutely ok!

Go with the data and insights. Do not go against what the case is telling you.

Plenty of cases result in us recommending not doing something or selling something. Is the data/insights support this, then that's perfectly fine. Just make sure your risks + next steps in this instance make sense.

Answer 3

Hi Dan,

As long as (1) you provide clear logic in support of your answer, and (2) your answer follows from the insights you developed during the case, it is perfectly fine to make the recommendation that makes most sense to you. So yes, it’s perfectly fine to recommend not entering a market if that’s what the data leads you to conclude.