New product and new market

competitive response Competitor Analysis New Market Entry New product
New answer on Jul 20, 2020
2 Answers
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Anonymous A asked on Jul 14, 2020

Hi there.

Considering the following situation:

A software company that has been in the market since 1997 with existing and established customers in the financial sector.

The company developed a new SAAS solution that is designed to cater to the needs of a new market.

The company wants to know the following:

  • Does this product have demand?
  • How to identify the new market?
  • What is the best selling model and price?

This is an exercise given in the class. The given information is about the features and capabilities of the new product this company has.

My approach is to do the following:

  1. Market entry approach
  2. Competitor analysis
  3. Pricing
  4. Produce the recommendations

NOTE: In the above 4 points I am referring to the articles in the Bootcamp section of the website.

Does this make sense? is there a better way to approach this kind of case?

Your guidance and help are highly appreciated.

Cheers.

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Clara
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replied on Jul 14, 2020
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut

Hello!

Sorry, could you clarify what you mean with class, bootcamp and website? You mean PrepL?

A priori seems okay, but this is only the 1st degree of depth, for sure not enaugh to assess whether would be enaugh or not as an alaysis.

Best,

Clara

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Anonymous A on Jul 15, 2020

My apologies. Class refers to my personal training course. for BootCamp and website, I am referring to the bootcamp section on PrepLounge.

Ian
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replied on Jul 20, 2020
MBB | 100% personal interview success rate (8/8) and 95% candidate success rate | Personalized interview prep

I think your approach is a bit limited. Where's your customer + product analysis!

If you're looking to launch a new product, by definition you need to understand the product and who it's for. As such, you need to identify:

1) What is the value proposition/value add of my product

2) What customer groups have this need

3) What would these groups be willing to pay?

Without this, there's no point in figuring out how you'll enter, what competition is there, and how you'll price the product. You're missing the first (and most important) steps!!

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Anonymous A on Jul 30, 2020

Interesting points. The approach that I prepared did include these points exactly. 1: Researching competitors and why customers are buying from them, and how much of that specific market they control; 2: defining the right market based on the needs of the clients and how to match the solution at hand with their demand; 3: Product strategy for market fitness; 4: Marketing strategy and cost estimation; -- That proved to be extremely useful and the result of the deck was very interesting. It has gone to the next level at the moment. Thanks for sharing!

(edited)

Clara gave the best answer

Clara

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