Context Slice Market Entry Framework
Entering a new market is one of the highest-stakes strategic decisions. The right market at the right time can transform a business. The wrong one can drain resources and distract from the core.
Market Entry Assessment Dimensions
Market Attractiveness
- Size: Total addressable market (TAM)
- Growth: Market growth rate
- Profitability: Industry margin profile
- Accessibility: Barriers to entry
Competitive Position
- Current competitors: Who's there and how strong
- Differentiation opportunity: Can you win?
- Timing: Early, growing, or saturated?
Strategic Fit
- Synergies: Leverage from existing business
- Capabilities: What you have vs. need to build
- Resources: Investment required
Execution Complexity
- Regulatory: Legal and compliance requirements
- Operational: Local presence, supply chain
- Cultural: Language, customs, business practices
Market Entry Analysis Template
## Market Entry Analysis: [Target Market]
### Executive Summary
[2-3 sentence summary: opportunity thesis and recommendation]
### Market Opportunity
#### Market Size
| Metric | Value | Source |
|--------|-------|--------|
| TAM | $[X]B | [Source] |
| SAM | $[X]M | [Calculation] |
| Growth rate | [X]% CAGR | [Source] |
#### Market Dynamics
- **Key trends:** [Trends driving growth]
- **Customer needs:** [Unmet needs in this market]
- **Buying behavior:** [How decisions are made]
### Competitive Landscape
| Competitor | Market Share | Strengths | Weaknesses |
|------------|--------------|-----------|------------|
| [Comp 1] | [X]% | [Strengths] | [Weaknesses] |
| [Comp 2] | [X]% | [Strengths] | [Weaknesses] |
| [Comp 3] | [X]% | [Strengths] | [Weaknesses] |
**Competitive intensity:** [Low/Medium/High]
**Our differentiation:** [How we can win]
### Strategic Fit
| Dimension | Assessment | Notes |
|-----------|------------|-------|
| Product fit | [Strong/Moderate/Weak] | [What adaption needed] |
| Go-to-market fit | [Strong/Moderate/Weak] | [Channel considerations] |
| Operational fit | [Strong/Moderate/Weak] | [Support, fulfillment] |
| Cultural fit | [Strong/Moderate/Weak] | [Localization needs] |
### Risk Assessment
| Risk Category | Risk Level | Key Risks | Mitigation |
|---------------|------------|-----------|------------|
| Market risk | [H/M/L] | [Risks] | [Mitigations] |
| Competitive risk | [H/M/L] | [Risks] | [Mitigations] |
| Execution risk | [H/M/L] | [Risks] | [Mitigations] |
| Regulatory risk | [H/M/L] | [Risks] | [Mitigations] |
| Financial risk | [H/M/L] | [Risks] | [Mitigations] |
### Investment Requirements
| Category | Year 1 | Year 2 | Year 3 |
|----------|--------|--------|--------|
| People | $[X] | $[X] | $[X] |
| Marketing | $[X] | $[X] | $[X] |
| Operations | $[X] | $[X] | $[X] |
| **Total** | **$[X]** | **$[X]** | **$[X]** |
### Financial Projections
| Metric | Year 1 | Year 2 | Year 3 |
|--------|--------|--------|--------|
| Revenue | $[X] | $[X] | $[X] |
| Gross margin | [X]% | [X]% | [X]% |
| Breakeven | [When] | — | — |
### Entry Strategy Options
#### Option 1: [Strategy Name] (e.g., Direct Entry)
- **Approach:** [Description]
- **Pros:** [Pros]
- **Cons:** [Cons]
- **Best if:** [Conditions]
#### Option 2: [Strategy Name] (e.g., Partnership)
- **Approach:** [Description]
- **Pros:** [Pros]
- **Cons:** [Cons]
- **Best if:** [Conditions]
### Recommendation
**Decision:** [Enter / Don't Enter / Explore Further]
**Rationale:**
1. [Reason 1]
2. [Reason 2]
3. [Reason 3]
**If entering:**
- Recommended strategy: [Option]
- Key success factors: [1, 2, 3]
- First milestones: [Milestones]
- Go/no-go checkpoint: [When and criteria]
**If not entering:**
- Primary concerns: [Concerns]
- What would change our mind: [Conditions]Entry Strategy Options
| Strategy | When to Use | Pros | Cons |
|---|---|---|---|
| Direct entry | Strong capabilities, attractive market | Full control, full upside | Highest risk, slow |
| Acquisition | Need capabilities fast, targets available | Speed, expertise | Expensive, integration risk |
| Partnership | Local knowledge critical, lower risk | Shared risk, local expertise | Shared economics, less control |
| Licensing | IP is the value, low resource | Low investment | Limited upside |
| Pilot/test | Uncertain, need to learn | Learn before commit | Slower, may tip hand |
Context Questions
Before analyzing market entry, ensure you know:
- Why this market: What's the opportunity thesis?
- Why now: What's the urgency?
- Resources: What can you invest?
- Risk tolerance: How much can you afford to lose?
- Timeline: When do you need results?
- Alternatives: What else could you do with these resources?
Red Flags
Watch for these warning signs:
- "Everyone is doing it" → Following the herd
- "It's a huge market" → TAM isn't SAM
- "No real competition" → Either wrong or no market
- "We'll figure it out" → Under-estimating complexity
- "Quick win" → Market entry is rarely quick