The Market Entry Framework is a tool taught in all business administration schools and it is used to evaluate

  • Entering a new geography.
  • Entering a new product category.


1. Market 2. Capabilities 3. Financials 4. Entry strategy
Who are the customers? And what products do they buy today?


What are the main differences between the company’s current market and the new market? What’s the current financial situation of the client? Does it have spare financial resources to invest? When should the company enter the market? Is there a first mover advantage or is it better to wait for a few competitors to try first?
How big is the market? And how fast is it growing? Has the company ever done any new market entries in recent years? How much will it cost to enter the new market? At what speed should the company enter the market? Test a region first, or enter the whole market at once?
How profitable is the market? Have other people similar to the client tried to enter the new market in the past? Is there anything we can learn from their attempt? What will be the ongoing costs once the market is entered? Should the company establish its own entity and have full control? Or should it buy / build a Joint Venture with a competitor?
How intense is the competition? Are there more and more players? What are the expected revenues from the new market? Through which channels / customers will they be achieved? Should the company control the market entry from its head office? Or should it give a lot of freedom to the new country manager?
How heavily regulated is the market? Are there barriers to entry? What is the overall expected Return on Investment from the market entry?


We will discuss a few consulting cases and show that this framework may not work well when entering foreign market.