In this module9 lessons
Should we enter this market?
Judge a market entry question on three tests (is the market worth it, can we win, how do we start) and recommend a narrow first step you can measure.
6 min readFull kit
"Should we enter this market?" is the most common strategy prompt. It comes in many costumes: launch in a new country, serve a new customer type, move into a neighboring product category. Underneath, it always asks three questions.
- Is the market worth having? Is there enough money, growth and room for another player?
- Can we win in it? Do we bring something that matters to customers and is hard to copy?
- How would we start? Which customers first, in what form, and how do we limit the downside?
Most weak answers spend all their time on the first question and treat the second as obvious. Interviewers care most about the second. A big market where you have no edge is a good way to lose a lot of money.
Key idea Market size tells you whether the prize is worth chasing. Right to win tells you whether you will get any of it. Spend more of your time on the second.
Checking your access…
Practice this lesson
- Should Airbnb get into the hotel booking business in a bigger way?
- Should Apple build its own search engine?
- Should a meal-delivery app launch its own ghost kitchens?
- Should a consumer language-learning app enter the corporate training market?
- Should Spotify start selling concert tickets directly?
- Should a fitness tracker company start selling health insurance?