I was working on a market entry case for a European Company to enter the Chinese Market due to saturation in Europe - is this structure strong?
What changes should I make? Also, I have not been using frameworks but trying to create my own - but I was wondering if the Company, Customer, Product and Competition would be more mutually exclusive here?
Any suggestions/feedback are welcome!
Although your structure is quite good, and it is better to avoid junior things such as 4Cs, your structure is not MECE. Some topics such as financials and competitions are present in different buckets.
Some things are also not very clear.
My suggestion is to review your structure trying to think about a logical flow in the first layer.
First, you have to discover more about the Chinese market.
Then you should ask yourself whether you can compete in that market (i.e., what does the competition and what capabilities do you have or need). Those capabilities should cover also your products/services. Here you should also cover regulations and specific needs to launch in China (e.g., supply chain).
After that, you have to craft a business plan and size the risks associated with it.
Every second layer should be as MECE as well and should cover the relevant areas in a very straightforward way.
Hello,
As other coaches have suggested, your structure is not completely MECE.
Thus, I would suggest the following struture:
1) Market attractiveness:
1a: Market Size and Growth
1b: Competition, Customers and Our Offering
2) Profitability:
2a: Annual Revenues (derived from Market Size)
2b: Annual Costs
2c: Upfront Investment/NPV/PBP etc
3) Implementation
4) Capabilities and Risks
4a: Capabilities. Can further break this down into Strategic, Financial, Operational
4b: Risks. Can further break this down into PESTEL or some elements thereof based on the needs of the case
Hope this helps!
All the best :)
Rushabh
Hi there,
You have good thinking here! Unfortunately it is not MECE. Remember, you're setting up a project plan here - what would you actually do on a project?
For market entry, the approach I like the best is 1) Is it a good market, 2) Is it a good market for us (will we do well in it) 3) Can we actually execute/pull it off (does it make sense).
You need to work on MECEness - this is very hard to fix through self-learning + Q&A.
Hi there,
It is an okay structure, with 3 bigger flaws:
1. It is not entirely MECE (financials)
2. Certain parts sound canned (capabilities, risks)
3. The biggest issue: The framework is not consistent within itself. You compare areas to investigate such as what is the market size with ideas such as M&A, joint venture, etc.
Cheers,
Florian
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