How to get into the Market?

Let's go through the following questions to have a solid platform for your new product Launch/ Market Entry, for example you want expand to Japan, what would you do:

1)What are the Relevant Markets for the Product? Niche or Mass Market?

2)What kind of growth did the Japanese market witness? Is it Sustainable?

3)What is the Current Profitability of the Players in the Markets (Best Estimate you can get?)

4)What is the Potential Future Profitability?

5)What does the demand look like? are there any Gaps?

6)Who are the customers?(Segmentation ,Consumer Behaviour)

7)Who are the Competition? (Concentration, Positioning, Competencies)

8)What are the % Customs Paid, Sales Tax?

9)What are the market trends?(Regulations, Demographics, Technology)

10)What are the barriers of Entry? 

11) Establish the method of Entry (Export, Partnership , Acquisition )

12) What is the track record of Similar companies which entered the same market? 

13) What is is the Current FX rate and Current FX outlook?

14) What are the Weighted Average Cost of Capital (WACC) in Japan broken down by the cost of equity and the cost of debt multiplied by their relative percentages ?

Assumptions:

1)What are the Product Performance Metrics?

2)What is the Market Size? And what is the Capacity Utilisation? 

3)What is the Gross Margin? What is the Cost Structure (economies of scale, scope)?

4)What are the Sales Calls per Sales Person?

5)What is the Conversion Rate of Prospects to Customers?

6)What is the Length of the Sales Cycle?

7)What is the Return on Investment for the Customer?

8)What is the number of Technical Support Calls per day?

9)What is the Payment Cycle for Receivables and Payables?

10)What are the Compensation Requirement for Staff?

11)What are the prices of Parts and Supplies?

Afterwards, You will have to do the following:

a)Calculate Your Monthly Costs

b)Calculate the gross profit of your Unit Produced

Milestones:

1)Prove your concept

2)Complete Design Specifications

3)Get a Sample of the Product

4)Raise Capital

5)Ship to the customers

6)Achieve Breakeven

Tasks:

1)Renting Office Space

2)Finding Key Vendors

3)Setting up Accounting and Payroll Systems

4)Filing Legal Documents
5) Purchasing Insurance Policy