10 Key Value Drivers 5　Market entry strategy　中文

Main Idea

Success in the marketplace is part insight, part opportunity and partly an ability to execute. To be a success, you have to show you understand the strategic challenge of market entry.

Supporting Ideas

In this section, you need to show that you have everything required to be successful available. Above all else, reasoned, balanced thinking is needed, rather than wildly optimistic forecasts.

1．Discuss your industry

Outline the existing value web of value-creating activities which companies in your industry engage in.

• Give a competitive analysis—who the market leaders are, which value-chain activities they specialize in, their core competencies, etc. Demonstrate that you understand where your enterprise's efforts should be focused.
• Break down your industry's value web in detail—which companies specialize in which value-adding activities, who the industry leaders are and any niches which might have been left unexploited by the current industry participants.
• Analyze your industry's dynamics—whether trail-blazers, creative disrupters or fast followers have done well in the past. Also look at the track records of the innovators as an indicator of future commercial opportunities.
• Look at potential substitutes—and determine whether the market is ripe for alternative solutions. This may occur whenever there is a change in the economics of the industry or if new technology becomes available.

2．Develop your market entry strategy

Decide specifically how you'll enter the market and which type of business strategy you will attempt to execute.

• Explain how your market entry strategy was selected—and the factors which you took into account in making this decision.
• Make a comparative analysis—by looking at what others are doing now or have done in the past in order to break into this market.
• Establish the barriers to entry—and detail how you will overcome these technical or strategic barriers in practice. Ideally, you'll also detail how these barriers will dis-courage competitors from emulating your own business model in the future.
• Look at all the peripheral factors—such as whether you'll need to educate the marketplace, whether it's feasible to become a supplier to the suppliers rather than a direct market participant, how flexible your pricing will need to be as new market entrants arrive, how your business should be positioned within the industry, etc.