Get the 'One-Day Business Plan' Guide and 10 Section Templates.

Market Entry

Market entry strategies are an integral part of growth strategy. Growth is a necessity for all organizations, which can be achieved either by organic or inorganic means that will tap new revenue pools.

Organizations need to explore new sources of growth such as increasing revenues from current products by adding customers in un-served geographies (geographic expansion) or by adding new types of customers (customer segment expansion).

Additional revenues can also be earned from existing customers by adding products or increasing the sales channels to boost the share of wallet (product/channel expansion) or by appealing to new customers via new products (diversification).

market entry

Opportunity Assessment

  • Macro-trend analysis (PEST)
  • Statutory requirements
  • Industry Review (Value Chain and Cost Waterfalls)+ Competitor identification and review

CSF and Entry Options

  • Critical Success Factors to achieve
  • Entry options – build/buy/partner
  • High level financial projections leading to Go-No Go decisions

Capability Assessment

  • Capability gap assessment
  • Market-competency match to prioritize opportunities
  • Opportunity qualification summary

Operating Model

  • Product mix
  • Organization Structure, People, Processes, Technology

Detailed Business Case

  • Estimates of investments, revenues, costs
  • Financial projections – P&L, B/S, Cash flows
  • Risk Assessments

Entry Project Plan

  • Project plan covering schedule of internal and external activities

Clear alignment of all stakeholders around areas of growth – Growth area hypotheses, Identification & selection of growth areas, and a documentation of the strategic growth ambition and selection criteria.

Opportunity sizing and qualification – review of customers and competitors to bring out features, trends and dynamics in the target markets/industries along with a ranked growth opportunity long-list.

Business and operating models to capture the opportunity along with an inside-out idea / competency assessment to understand the gap between existing and required capabilities.

A business case providing estimates of returns under different scenarios of strategy, risk and investment.

Development of market entry implementation plans based on selected options

Sharp view of market opportunity within larger industry/country context

Realistic assessment of opportunity given the organization’s actual capabilities and resources

Alignment of involved functions and people with opportunity requirements making execution seamless

Projections of risks and benefits to organization ensuring management of problems.

(The following is a non-exhaustive list of engagements provided as a sample of total experience)

Market entry and financial feasibility assessment for a large industrial house in the United Arab Emirates wishing to enter the dairy and fresh juice business. The assignment involved trade research to assess the viability of the proposed entry, developing estimates of market share, recommending a logistics model, and developing a revenue model and financial model. Projections of profitability, cash flows and returns were generated and used to assess various options.

Diversification Study for a large Indian manufacturer of heavy electrical products The project involved a review of the internal resources and structures of the company, and an analysis of its operating policies as per expected changes in the operating environment. Based on the results of this internal analysis, a feasibility review of potential investment opportunities in a number of industries was undertaken to arrive at an optimal diversification strategy that would achieve proposed turnover levels.

Strategic Segmentation of the Indian Temperature-Controlled Logistics Services Market for an apex Japanese multinational corporation with interests in an Indian temperature-controlled logistics (TCL) firm which transported and warehoused frozen foods nationally. The engagement provided an understanding of the TCL market by analyzing industry segments beyond frozen foods such as dairy, produce, processed and un-processed foods, floriculture, etc. It identified Geo-economic and demographic trends of relevance; Consumer behavior affecting the penetration of perishables requiring temperature-controlled transport and storage facilities; Buyer preferences and the Realizable scale of the TCL business in each product category. Based on the match between the market and the company’s offerings, the management was able to decide its segment-specific entry and exit strategies.

Hotel Market Review and Feasibility study for Retail Space Development in India for an international hotel chain. The study required the review of the retail and property market, concept identification and concept testing amongst consumers and retailers, identification of target consumers, sizing and valuation of catchment areas, estimation of traffic potentials, configuration of the retail property with respect to scale of development, tenant mix and number of outlets, and the projections of financial estimates based on a market-driven property pricing structure. The study led to a number of similar follow-on assignments across other major urban centers.

Financial and Operating Pre-Feasability Assessment of a tertiary level management education institute to be based in a major North Indian city, promoted by a UK-based group. The assignment involved designing an industry-driven curriculum, developing an organisation structure based on the expected enrollment and the curriculum, and making projections of revenues, expenses, investments and liabilities over the short and medium term.