Market Opportunities · Entering new markets · Component
Entry mode decision
The routes into a chosen market that were considered, how much commitment and control each involves, and the one selected.
The deliverable
What it is
Entry modes differ mainly in how much the organisation commits and how much it controls. Export and licensing need little investment and give little control; a wholly owned subsidiary needs a great deal of both. Partnerships and joint ventures sit between them.
The decision records the route. The work that follows a partnership choice — selecting and contracting the partner — belongs in Partners, and the work that follows a decision to buy a local business belongs under Build, buy or ally.
One level in
What it is made of
Each element is a constituent part of the component. Follow one to see the attributes it carries.
Modes considered
Each entry route that was examined for this market, and why it was kept in view or set aside.
LearnCommitment and control
For each mode kept in view, the resources committed, the control it gives, and how long it would take to reverse.
3 attributes: Commitment · Control level · Time to reverse
LearnSelected route
The entry mode chosen, the reasoning, and a pointer to where the follow-on work for that mode is carried out.
3 attributes: Mode · Reason · Follow-on work
Learn
Record time to reverse for each mode. It is the dimension that matters when the first year goes badly.
The other components in entering new markets
Market selection screen
Candidate markets compared on their distance from the organisation and their reachable size, with a recorded decision on each.
LearnStaged entry plan
The steps by which the organisation enters a market, the evidence needed before each larger step, and the criteria for withdrawal.
Learn