Key Factors Influencing Market Entry Success PPT
This PPT slide, part of the 27-slide Psychology of Market Entry Analysis PowerPoint presentation, outlines 6 critical factors that companies should consider when entering new markets. Each factor serves as a predictor of market entry success, providing a framework for strategic decision-making.
The first factor is the "Size of Entry Relative to Minimum Efficient Scale." This suggests that companies entering closer to the minimum efficient scale of an industry are more likely to succeed. It implies that entering below this threshold may require rapid scaling to test market viability, which can be risky.
Next, the "Relatedness of the Market Entered" emphasizes the importance of leveraging existing portfolios. Companies with relevant assets have better chances of success,, but they must evaluate how closely related their current offerings are to the new market.
The third factor, "Complementary Assets," highlights the significance of marketing and distribution capabilities over core assets like engineering. This suggests that successful market entry often hinges on effective support systems rather than just product innovation.
The "Order of Entry" factor discusses the dynamics of market timing. While first movers can gain advantages, established players diversifying into new markets may outperform them. This indicates that timing and market experience are crucial.
The "Industry Lifecycle Stage" factor points out that entering early in the lifecycle increases the likelihood of success. Companies should be aware of the stage they are entering to align their strategies accordingly.
Lastly, "Degree of Technological Innovation" notes that industries requiring significant inside knowledge can favor incumbents. New entrants may find opportunities in niche markets overlooked by larger players, suggesting a need for strategic differentiation.
These insights collectively guide companies in making informed market entry decisions, emphasizing the importance of strategic alignment with these 6 factors.
This slide is part of the Psychology of Market Entry Analysis PowerPoint presentation.
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Market Research Psychology Cognitive Bias Market Entry Innovation
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