Field 1- Activity

You are a team of consultants representing a Management consulting firm.

Management consulting is the practice of helping organizations to improve their performance, operating
primarily through the analysis of existing organizational problems and the development of plans for
improvement. Organizations may draw upon the services of management consultants for a number of
reasons, including gaining external (and presumably objective) advice and access to the consultants'
specialized expertise.

Consultancies may also provide organizational change management assistance, development of coaching
skills, process analysis, technology implementation, strategy development, or operational improvement
services. Management consultants often bring their own proprietary methodologies or frameworks to
guide the identification of problems and to serve as the basis for recommendations for more effective or
efficient ways of performing work tasks.

Group 1: The client is a Indian financial services major who is looking to enter the Canadian market. You
are called in to advise the client on their entry plans.

Group 2: The client is an Indian retailer who is looking to enter the German market. You are called in to
advise the client on their entry plans.

Group 3: The client is a Indian financial services major who is looking to enter the French market. You
are called in to advise the client on their entry plans.

Group 4: The client is an Indian retailer who is looking to enter the Spanish market. You are called in to
advise the client on their entry plans.

Group 5: The client is a Chinese cellphone manufacturer major who is looking to enter the Canadian
market. You are called in to advise the client on their entry plans.

Group 6: The client is a Chinese cellphone manufacturer major who is looking to enter the UK market.
You are called in to advise the client on their entry plans.

Group 7: The client is a Thai retailer who is looking to enter the German market. You are called in to
advise the client on their entry plans.

Group 8: The client is aIndian retailer who is looking to enter the Canada market. You are called in to
advise the client on their entry plans

Group 9: The client is a German mobile manufacturer who is looking to enter the Canadian market. You
are called in to advise the client on their entry plans

Group 10: The client is a Swedish furniture retailer who is looking to enter the French market. You are
called in to advise the client on their entry plans
Market Entry Framework

Market entry cases can be quite tricky if the basic factors such as basis of entry,
companys As-Is position etc. are not understood properly.
This framework broadly outlines the major considerations in a market entry
case. Different portions of the framework may be important for different
problems depending on case in point.
A comprehensive analysis includes the following:
1. Situation Analysis
2. Value chain Analysis
3. Industry Attractiveness
4. Entry Strategy

1. Situation Analysis

If the situation analysis culminates into finding which part of value chain is
appropriate for entry, value chain analysis needs to be done. 25
Sourcing Manufacturing Distribution After sales services
2. Value Chain analysis

Parameters
Market Size
Sales Growth
Profitability
Competition
Customers
Technology/skills Investment required
Value of Synergy
That part of value chain must be chosen which maximizes profits of the firm.
It must be in-line with the firms primary objective

3. Industry Attractiveness

Once the firms objective and its role in the market entry is understood it is
essential to evaluate the industry attractiveness. It has two major components:
Fundamental Attractiveness Is the industry attractive irrespective of the
firms current business, products, customers, performance etc.?
Competitive positioning How is the firm positioned to perform in the
industry by virtue of its present status?
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Industry Attractiveness Fundamental AttractivenssMarket - Size, Growth,
Profitability Industry - Competitors - Customers - Value Chain Entry Barriers -
Regulation - Distribution - Investment - Technology - Brand Loyalty Competitive
Positioning Revenue Synergies - Cross selling existing products to new
segment - Cross selling new producs to existing customer segment - Effect of
increased product quality (if any) on pricing and volume Cost Synergies -
Economies of scale - Sourcing/ Distribution benefits Technological benefits -
Savings in SG&A - Consolidation benefits - Value chain integration benefits
(upstream/downstream)
Increase in either of the parameters compensates for the decrease in the other
for a threshold level of attractiveness. A curve can be plotted as shown below:
Fundamental Attractiveness
Enter
Do not enter
Competitive Positioning
4. Entry Strategy