How To Craft a Winning Market Entry Strategy — Intro

How To Craft a Win­ning Mar­ket Entry Strat­egy — Introduction

Hi there, and wel­come to the next video for DonaldMcMichael.com. Inside this video, How To Craft a Win­ning Mar­ket Entry Strat­egy, I’d like to talk about an impor­tant process that is often clouded by mis­con­cep­tions; strate­gi­cally expand­ing your busi­ness foot­print. Of all the rev­enue enhance­ment mod­els this is the eas­i­est to spot; it’s highly vis­i­ble but full of com­plex nuances that can’t be ignored.

Whether you’re expand­ing into a new coun­try or div­ing into a new demo­graphic you’re enter­ing a new cul­ture, one that you have never oper­ated in before. It pays to take the time to not only under­stand the envi­ron­ment, but also the new pres­sures that will be placed on oper­a­tions and on you, the manger, as you work to estab­lish a cred­itable beachhead.  

So what are the basic mar­ket entry strate­gies? The best way to think about this is to eval­u­ate the rev­enue modes. Which are:

• Licens­ing
• Invest­ment
• Strate­gic Alliances (com­monly referred to as part­ner­ship devel­op­ment channels)

Over the next few videos I’ll give you a run­down on what’s involved with each.

The best way for me to put every­thing into per­spec­tive is to think about it as a picture.

As you can see the var­i­ous mar­ket entry options form a con­tin­uum. The level of involve­ment, risk, and finan­cial reward increases as a com­pany moves from mar­ket entry strate­gies such as licens­ing to joint ven­tures, and ulti­mately, var­i­ous forms of invest­ment. When an exist­ing entity seeks to enter a devel­op­ing mar­ket, there is an addi­tional strat­egy issue to address: Whether to repli­cate the strat­egy that has served them well with­out sig­nif­i­cant adap­ta­tion. To the extent that the objec­tive of enter­ing the mar­ket is to achieve pen­e­tra­tion, one is are well advised to con­sider embrac­ing a broad-market mind-set. I don’t like to refer to it as mass-market for many niche play­ers have proven that they can suc­ceed with a niche-plus strat­egy. A niche plus strat­egy tar­gets the core while mak­ing adap­ta­tion moves to attract an audi­ence from the neigh­bor­ing niches.

So, which strat­egy should you pursue?

Well it depends on:

• Your vision
• Atti­tude toward risk
• The avail­able invest­ment capital
• And, how much con­trol of your brand you need… to feel comfortable

The core of my deci­sion mak­ing process is always a solid fea­si­bil­ity study that takes into con­sid­er­a­tion all of these vari­ables – as well as the typ­i­cal finan­cial analysis.

Thank you for watch­ing this intro­duc­tory video and I look for­ward to see­ing you in Part 1.

In the next video we’ll dive into the pros and cons of Licensing.