Market Entry Strategy
Does your company need to enter a new market? Download the Market Entry Strategy presentation template to discover if a market expansion investment is worth it. Whether you want to enter a new geography, new sector, or new demographic, a strong market entry strategy is required to plan out the likelihood of success vs the cost of failure. The template includes slides on Buyer Values and Buyer Value Migration, Comparative Market Study, Scenario Analysis, Revenue vs. Market Size, Competitive Matrix, Strategy Implementation, Product Portfolio Strategy, Investment Projection, MARCI Chart, Market Selection Criteria, and many more. Stick to the end, and we'll explain how Apple could use these strategies to navigate their next big market entry move: self-driving car software.
The first step to any market entry is an assessment of the opportunity available. This buyer values visualization allows the input of data from market research to rank different aspects of a product or service based on whether or not users will value it. The expected value a user wants from a product is listed out along with the opportunity that exists to service that market. For example, an existing market comes with high opportunity based on past precedents, while an emerging market has high potential with less competition to gain a first-mover advantage. A market with minimal to no opportunity should be an area to avoid the dedication of further resources. (Slide 3)
Value migration charts
Because buyer's values change over time, value migration charts plot value changes of a typical product lifecycle from introduction to mass adoption to maturation or decline. While results aren't guaranteed, it's good to use these exercises and preparations to guide your market entry strategy. (Slide 4)
Comparative market study
Another form of analysis is a comparative market study. This slide compares a new market vs the rest of the world when it comes to an emerging market. The top graph compares a new market geography to the established market, while the bottom graph applies compares a mature product across a new market. An example of this would be if Apple were to chart its mature product, the iPhone, as it launches in a new market, like in India. For the mature graph, you can plot how long it will take the new market to reach the same penetration rate as the mature market. Use both comparisons to get a benchmark of how your existing product could stand in that new market. (Slide 11)
Scenario analysis plots expansion conditions. This visualization projects the current, or base scenario against favorable or setback scenarios. Since a new market or region comes with a lot of external forces, it's important to consider the macroeconomic relationships, political headwinds, institutional or upcoming regulations, and regional disparity of rules. The next visualization expands on the favorable scenario and tallies the individual impact of each category for the total additive impact. Because the synergy of all these favorable outcomes can be exponential, a separate datapoint accounts for the synergistic impact and the total market growth potential. With the same logic applied, the setback scenario can also be expanded on to tally the additive and collective impact of a failed market expansion in the following slide. Ideally, you would only want to move forward with a market expansion if both the favorable and setback scenarios result in considerable growth. (Slide 12-14)
Revenue vs market size comparison
This visualization covers a standard five-year projection to compare the potential revenue growth of an existing or new product vs the overall market size. For example, in year five, while the overall sales reached $43 million, at $13.4M the new product hasn't caught up to the existing product. This means the existing product line needs nurturing even as the new market is entered so core revenues aren't jeopardized at the expense of a high potential experiment. (Slide 20)
Apple business case
So how could a company like Apple use these strategies to conduct their own market entry strategy? Let's assume the rumors about Apple's upcoming "Project Titan" are true and Apple has a Car OS in development to control every aspect of a car's function, including self-driving capabilities. What could Apple do to assess the value of this major investment?
It could conduct an assessment of buyer values to find out that many Apple users have a crowded nighttime routine that makes it difficult for a new streaming service like Apple TV+ to break into. But there's an emerging market in connected cars which fits nicely into its renewed focus on services.
With a fully self-driving car, now drivers don't have to focus on the road and can not only listen to Apple Music but even watch Apple TV+ in their cars. As automakers and lawmakers lay the groundwork for self-driving vehicle regulation, there's a high likelihood these vehicles will hit the market by the end of the decade. This justifies not only massive investments in Apple TV+ but massive investments in a fully self-driving car, which turns an hour commute into an extra hour to offer services like entertainment. A favorable scenario indeed.
If the lack of a market entry scenario analysis and easy-to-customize visualizations are holding back your next market entry move, you need this presentation. Download the Market Entry Strategy presentation template for more slides on Competitive Matrix, Strategy Implementation, Product Portfolio Strategy, Investment Projection, MARCI Chart, Market Selection Criteria, and many more to save time and hours of work.