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Case type 05

Market entry

Whether and how a company should enter a market where it has no presence, with a realistic ramp-up, local fixed costs, and a choice of entry mode.

19 min1 lesson Last reviewed
Start the lesson Market entry

How do you approach a market entry case?

  • Ask three questions: is the market attractive, can we win in it, and do the economics work for us.
  • Then choose an entry mode: build, buy or partner.
  • The most common mistake: sizing the market in detail but never testing whether the company can win share.
  • Build your own three-part structure (attractive, can we win, economics), model the economics with a ramp and fixed costs, and lead with the assumption you think is the real swing factor.
By the end you will be able to
  • Structure a market entry around attractiveness, ability to win, and economics
  • Model entry economics over several years with a share ramp and fixed costs
  • Choose an entry mode (build, buy, or partner) using numbers