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