Market-entry timing Harvard Case Solution & Analysis

Market-entry timing Case Solution

a)     Measure of the market-entry timing for a new product or service:

The timing is considered to be one of the most important factors for the success or failure of a new project or service. The timing of market entry is a quantitative decision as well as tactical decision. The quantitative decision is normally dealt with the entry time problem such as when should a new product introduced in a market.The company must determine the product’s entry timing in order to focus on the opportunities with innovation along with the risks associated with product and marketing.

It is expected that the company should not only consider the marketing activities of early market entrants and the development of the industry but also the intensity of competition of other market entrants. According to an article, researchers have proposed a new arrangement of entry opportunities: 1) new industry, 2) new-product niche market, 3) new geographical localization, 4) established product-market (CLAUDE-GAUDILLAT , 2006)

The entrants in thenew industry possess unique capabilities and potential therefore, all the new market entrants should access new capabilities ashigh potential markets usually encourage market entry. It is considered that the companies have two different approaches of the entry timing. The first is where the companies are separated into early market entrants and late market entrants, and second is time to enter new market approach.

On the other hand, the early and new market entrants mainly focus on the advantages and disadvantages for pioneers. Many early market entrants try to develop first-mover advantages by strengthening the uniqueness of their offerings. The companies should oversee the opportunity and then decide to become the first mover of the last mover.

Factors affecting timing decisions:

It is rational to understand the factors that may affect the entry timing decisions. It is expected that the entry timing of the new product or service may be influenced by the factors such as characteristics of a firm, foreign country factors, culture, etc. the first concern here is to understand how the associated factors are related to timing decisions in a foreign market.

Many companies often do not perform adequate research on these factors rather focus on the product dimensions and not on geographical dimensions. Even if the research is already presented to the companies on geographical dimensions of a new market, they don’t needto examine these influential factors. Another dilemma is that many companies do not study completely before making entry into the new market. Some important factors such as culture, economic factor and company’scharacteristics were verified to have an influence on entry decisions.

If the company is making an entry into the foreign market then industrial market structure, technological advancements and overall economic condition are proved to influence the company’s potential both in terms of size and nature. If the host country has more favorable investment environment, thenthe market entry decision increases the likelihood to obtain the higher profits.

The most significant factor to consider is the competition in the given industry in which the company is going to make its entry. The companies should also consider the competition from the other potential market entrants. The evolution of rivalry in the market in which firm is desire to operates would also influence the probability and entry timings. The Degree of competition may accelerate the entry timing decisions of a firm.

In addition, along with the timings, real price, real earnings, long term and short term interest should also be examined before introducing any product. For instance, the company is going to launch its product in Jan 1st, then at that time real interest rate and long term and short term interest are needed to be examined...........

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