Risks of a market entry

market entry
New answer on Sep 17, 2022
2 Answers
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Anonymous A asked on Sep 15, 2022

Question in title. What risks would you consider for a market entry framework?

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Ian
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Content Creator
replied on Sep 15, 2022
MBB | 100% personal interview success rate (8/8) and 95% candidate success rate | Personalized interview prep

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
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Dennis
Expert
replied on Sep 17, 2022
Seasoned project leader with 7+ years of consulting and recruiting experience in USA and Europe

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?
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Ian gave the best answer

Ian

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