We recently published an article on how planning your market entry can help avoid a Waterloo - click here to read the full piece. In the article we talked about the battlegrounds a CEO needs to consider when approaching a new market. There are myriad questions which need answers when you are planning a new market entry - yet in our experience there is often a common bias at play, which may lead to poor decision making.
Here's some common biases we see in market entry decisions - and some insights on how to avoid them.
Battleground
Questions to ask
Common Bias
Insight
Commitment
What are core assumptions about market? how do we test them?
How detailed are our cost estimates? how we ensure we can afford
to compete and win?
How committed are the senior management team - and board?
Soft third party data or research reports.
Fear of declining sales in existing markets driving behaviour
Be rigorous in creating testable planning assumptions.
Plan that it will take twice as long to win as you think.
Have the courage to challenge all stakeholders on true commitment.
Selected Customers
What market will we target?
Are we looking at a new geography?
Knowledge about customers in existing markets will translate
Challenge existing models of target customers.
Assume nothing, test assumptions rigorously.
Measurable Value
What is our unique value proposition and what business model should we build?
Do we have the necessary capabilities to success in the market?
Considering existing capabilities and propositions as the determining factors for success.
Appoint a devils advocate.
Assume that current capabilities and propositions will need to be strengthened.
