Enter a New Geography or Market

MVM model thought process

1. starting in zone 1 → we are looking to change directions

2. now looking at zone 2 (operations) - what is the demand and what can we charge? how can we build awareness to increase demand?

3. Now look at zone 5 (external forces) specifically suppliers, competitors, industry, and technology

4. Moving to zone 3 (organization) How good are our people? How will we distribute?

5. Lastly zone 4: what is our funding plan, what will happen with debt/equity

Plan out on paper

How do we enter a new market

Strategy: Expanding → so how do we pick a market? what attributes do we need?

Revenue: Which customer will pay the most? Which country is easiest to enter?

External forces: Suppliers - do we have the chain we need? Will other competitors rise up? What industry or country barriers exist?

Internal factors: Team - who will head this? Will we market the same? Can we use some distribution channels? Funding?

Presentation example

Our goal is to enter a new country, so I want to determine which countries offer the best revenue and ease of entry. Issues like suppliers, competitor response, and industry barriers will be important. Time permitting, I also would like to discuss internal support issues like our team, marketing, distribution, and financing. Before I go down this path, does management have any specific goals for our team? For instance, the number of countries or revenue or profit targets?

MECE Mode

Revenue assessment:

• estimate the total revenue by time and geography

• outline risks that could limit revenue

Cost management:

• estimate total costs of the venture

Organization and Funds

• discuss unique aspects of the venture

Hypothesis examples

The Asian marketplace will be receptive to this product line.

The competitor landscape will determine the success/failure of the new retail stores.

Without domain experience the construction company should not open restaurants.

Mining for an answer

Demand: do we know that people want this product? can we estimate demand or price? where do we see the highest demand?

Product: How will the product attributes fit the geography, how will the product need to be modified to best fit the new market?

Internal support: what are the distribution and sales plans by geography? Does our team have international experiences? Is out financing in place?

Competitors: How will they response? Are they developing ay new products or strategues that will eat us in terms of timing, price or design?

Geography challenges: How different is this new geography or market from areas we serve today? What iteams do we need to respond to in the near term?

End the case

give a go/no go