Market Entry

Market Attractiveness

• market size

• market growth rate

• dense or fragmented

• average profit margins

Company Capabilities

• prior experience in the market (them or other company in industry)

• transferrable resources (L, L, C)

• leverage to enter market? (operational efficiency, technological power, brand power, existing partnerships)

• capable of handling market risks

• distribution channels

• supply chain

• synergies

Financials

• how long to break even

• significant costs entering the market (startup costs)

• past pricing model

• pricing plan

• will entering be profitable

• revenue = price x volume

• fixed costs = marketing, rent, training, overhead

• variable costs = labor, COGS, distribution

• Investment cost

Risks

• legal risks - lawsuits, licensing requirements, compliance costs,

• macroeconomic shocks - political instability, currency fluctuations (international)

• potential competitors (if not a bucket) - incumbant retaliation like pricing wars, exclusive contracts, or marketing blitz

• cannibalization

• opporunity cost

• brand dilution

• barriers to entry