Cases Flashcards
Main principles for Market Entry
- Understand company currently
- Understand market of interest
- Evaluate Financials
- Economic Implications
ME:
Company Currently
Revenue, Strengths and weaknesses, Product mix, Customers, Distribution, Finances
ME:
Market of Interest
Growth rate, Customers, Stage of Life Cycle, Trends, Key players, Substitutions
ME:
Financials
Barrier costs (investment costs), Fixed/variable costs, Revenue, years to breakeven.
ME:
Economic Implications
If entering: How, Competitive advantage, timing and speed, orgnaization. If not, what can we do?
Profitability Formula
Profit = Revenue - Costs
Profit:
Revenue Breakdown
Revenue per unit x units sold. Has either changed? Over what time period?
Profit:
Questions to ask about Revenue
Is this an everyone thing or an us thing? Competitor, Decreased demand? Decrease quality?
Profit:
Cost breakdown
Cost per product (fixed and variable costs. (Variable = cost per unit x unit sold). Has anything changed?
Profit
Questions to ask about Cost
Is this an us thing or an everyone thing?
Materials gone up? Labor gone up?
Main principles of growth strategy
Products
Price
Marketing
Financials
GS:
Products questions
Product mix and lifecycle, state of those industries, biggest potential, driver of customer satisfaction, growth rate compared to competition.
GS:
Price questions
Price in comparison to competition, customer price sensisitvity
GS:
Marketing questions
Current marketing and sales strategy vs competitors
GS:
Financials questions
Current funds available for growth, shareholders demands