Growth Strategy

Hendy Consulting has worked on market entry strategies for new display technologies, new materials and MEMS semiconductors among others. Timing is important as is the right market entry vehicle: Direct sales, Distribution channels, JV or Acquisition.

Market Entry

Market entry is about making a considered, concerted move into a new space. Clearly understanding the economic potential of an unknown market, especially in the technology industry, is a daunting task. We look at a 10 point checklist in terms of market opportunity:

  • Size
  • Growth
  • Profitability
  • Players
  • Products including substitute technologies
  • Pricing
  • Customers
  • Customer purchase criteria
  • Sales and distribution channels
  • Value chain map

More importantly we look in detail at the competencies needed by the organisation to make a successful market entry and seek to make both financial and risk based trade-offs of the potential models: distribution, own-organization with greenfield options or JV/alliance.

Moreover, we assess the timing implications, so critical in the technology space, so that back-up plans can be made if the market does not develop as foreseen.

Market entry for high technology products is often about timing and mode of entry. Players need realistic plans based on capabilities that can deliver or back-up plans to mitigate against technology and commercial risks.