• Describe the overall nature of the industry, including sales and other statistics.
• Identify and interpret trends such as demographics, economic, cultural,
governmental influences (i.e., monetary policy) and market growth. What
conclusions do you draw from the trends as they relate to your business?
• Describe your business and how it fits into the industry, the global environment
and within your sector (i.e., productivity and competitiveness, changing supply
and demand conditions, elasticity considerations, etc.)
• Identify the major players (your competition) and their relative position.
Section 3: Market Analysis and Competition
• You will be entering through Amsterdam. Why is Amsterdam an excellent point of
entry?
• What other two countries will you expand into? Why? What is your rationale? Do
the selected nations align with your objectives?
• Define and clearly describe the target market(s) for your product in each country.
What is your rationale? Describe the need for your product
• Estimate market share and sales - Estimate the overall size of the target market
and the unit sales, and potential repeat purchase volume.
• Determine how the market might be affected by political, economic and
demographic changes.
• Describe possible barriers to entry (such as access to capital, technology,
regulations, industry policy, employee skill sets, location, , tariffs, nontariff
barriers to trade etc.) to your markets (Amsterdam and the two other countries).
How will these be addressed?
• Determine host countries regulations and requirements (countries where you
manufacture and where you distribute):
− Are there requirements to use host country resources
− Host country restrictions on repatriated dividends and other cash flows
− Taxes on repatriated cash flows
• Identify your primary competitors and their current market share.
• Estimate the volume and value of your sales in comparison with your
competition.
• How will you differentiate your product offering?
• Develop preliminary Break Even estimate
− B.E. → QBE = F/(P – V) F = fixed costs, P = Price, V =Variable Cost