Psychology of Market Entry Analysis (PowerPoint PPT)

DESCRIPTION

For every successful market entry, about market entry attempts end in failure. This failure is attributed to many factors—timing, scale, competition, capabilities, and particularly irrational decision making. The decision to successfully enter a market necessitates detailed analysis. These critical decisions, however, often get tainted by Cognitive Biases—the systematic errors in the way people process information. Cognitive Biases distort executives’ perception regarding their firm’s capabilities, potential market, and competition.

The presentation starts by highlighting a 2-pronged approach to Market Entry Analysis:

1. Develop a Reference Class
2. Remove Bias from Decisions

The deck then discusses the 6 key factors of market entry success:

1. Size of entry relative to minimum efficient scale
2. Relatedness of the market entered
3. Complementary assets
4. Order of entry
5. Industry lifecycle stage
6. Degree of technological innovation

The details of the 5 core issues in removing biases from decisions are then highlighted:

1. Value Proposition and Capabilities
2. Market Size
3. Competition
4. Market Share and Revenue
5. Costs

The slide deck also includes some slide templates for you to use in your own business presentations.

This PPT delves into the intricacies of cognitive biases and their impact on market entry decisions. It emphasizes the importance of developing a reference class to mitigate these biases and make informed decisions. The presentation also covers the nine most common cognitive biases that can distort decision-making, such as framing bias, conservatism bias, and availability bias.

Executives will find actionable insights on how to identify and counteract these biases, ensuring a more rational approach to market entry. The document also includes practical templates to facilitate the application of these concepts in real-world scenarios. This resource is essential for any executive looking to enhance their market entry strategy and avoid costly mistakes.

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Source: Best Practices in Market Analysis, Cognitive Bias, Market Entry PowerPoint Slides: Psychology of Market Entry Analysis PowerPoint (PPT) Presentation, LearnPPT Consulting