We recently published an article on how planning a new market entry can help avoid a Waterloo. In the article we talked about the battlegrounds a CEO needs to consider when approaching a new market. There are myriad questions which need answers when you are planning a new market entry - yet in our experience there is often a common bias at play, which may lead to poor decision making.
Here are some common biases we see in market entry decisions - and some insights on how to avoid them.
| Battleground |
Questions to ask
|
Common Bias |
Insight |
| Commitment |
- What are core assumptions about market?
- How do we test them?
- How detailed are our cost estimates?
- How we ensure we can afford to compete and win?
- How committed are the senior management team - and board?
|
- Soft third party data or research reports.
- Fear of declining sales in existing markets driving behaviour.
|
- Be rigorous in creating testable planning assumptions.
- Plan that it will take twice as long to win as you think.
- Have the courage to challenge all stakeholders on true commitment.
|
| Selected Customers |
- What market will we target?
- Are we looking at a new geography?
|
- Knowledge about customers in existing markets will translate
|
- Challenge existing models of target customers.
- Assume nothing, test assumptions rigorously.
|
| Measurable Value |
- What is our unique value proposition and what business model should we build?
- Do we have the necessary capabilities for success in the market?
|
- Considering existing capabilities and propositions as the determining factors for success.
|
- Appoint a devils advocate.
- Assume that current capabilities and propositions will need to be strengthened.
|
