Three Entry Strategies For Startups
Based on the context, an effective way to determine the market entry is by understanding the stage of development for the industry you're about to enter.
From there, you can evaluate whether it makes sense to:
Unbundling the product: in a market context, where there are consolidated players, that have been offering a bundle or portfolio of products for years. Or perhaps a single product with many features, but only a few of those features are interesting to customers. You can take the existing offerings and only develop the single product or killer feature that customers really want. This will be your entry point to unbundle the current market offering.
Cutting out intermediaries: in a context where the market is plenty of fragmented intermediaries, that extract much of the value from that, but offer a little overall value, a platform that connects customers with service providers, and cuts out those fragmented intermediaries will be very appealing to both sides of the marketplace, looking forward to helping you make those intermediaries irrelevant. Think of how Uber, Airbnb, and many other platforms' business models have been disintermediating entire industries.
Value innovation: in a digital world where it becomes possible to craft an offering that can scale, the player that figures out how to enter a market by offering more at a lower cost, can go far. Companies like Amazon in e-commerce and Netflix in media have been following the value innovation approach.
Or perhaps use all three above, which make up the formula for business model innovation. Indeed, over time companies that do develop a competitive advantage tend to control the three aspects above. From product to distribution and value innovation, as long as those elements are in balance, a competitive advantage might hold.
Read more: https://fourweekmba.com/market-entry-...
Learn more: https://fourweekmba.com/business-engi...