Market Entry Case - Inorganic Mode

Experts New Market Entry
New answer on Dec 31, 2020
3 Answers
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Anonymous A asked on Feb 25, 2019

Is it ok to ask whether the client wants to enter a market via organic or inorganic way in the clarification questions? Or should I create a generic structure and while discussing the market competitors ask whether we find any one of them to be an attractive acquisition target? Asking this because this element can if clarified in the beginning can help in laying down a more customized structure.

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Jorit
Expert
replied on Feb 25, 2019
ex-BCG | Kellogg MBA | 200+ coaching session| 50+ actual interviews | Flexible scheduling

Hi,

Yes clarifying the objective (entering a new market) and the constraints (producing in the foreign country, licensing, acquisition, .. ) are great questions to ask in the beginning of the case.

I would frame it as "I can see several ways our client could enter this market, such as acquisition, licensing, producing ourselves, has the client voiced any preferences/restrictions on the type of entry, or should we consider them all?

Hope this helps.

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Vlad
Expert
Content Creator
replied on Feb 25, 2019
McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School

Hi,

Yes, I absolutely recommend asking this in clarifying questions since it can have a significant impact on your structure.

Best

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Ian
Expert
Content Creator
replied on Dec 31, 2020
MBB | 100% personal interview success rate (8/8) and 95% candidate success rate | Personalized interview prep

Hi,

The first step is to make sure you're clear on why the company is looking to enter the market. Is it for topline growth, bottom-line growth, diversification, to gain economies of scale, to gain market share, build new skills/competencies, pre-emptively strike a foreign competitor, ahieve a long-term vision (applies well to an NGO) etc.?

Once you have this, you can get a feel for which of your 3-4 classic market entry buckets (company, market, competitor) you want to tackle first.

For example, if it's topline growth, the market size probably matters most. If it's economies of scale or building skills/competencies it's company first. If it's strike a foregin competitor or even bottom-line growth (for a comparison) it's competition first. I think you get the gist :)

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