1. How would you approach this entry strategy problem? What is the sequence of steps?

We will approach the problem doing an outside-in analysis.

STEPS:

1. Analyze the market and identify the size and our potential clients. (200 – 2000
employees)
2. Identify the customer needs.
3. Map the current competitors including their subsidiaries.
4. Decide or position in the market.
5. Hire or buy enterprises with experience in this sector.
6. Design our local strategy.

1. Size of potential market (insources and outsources)

2. Size of accessible market (what entry barriers does it have)
3. Find differentiating features (that overcome the clients’ switching costs)
4. Target client segments (low switching costs, we can bring differentiating value)
5.

2. What is the value, if any, of the ‘generic’ 5/6 forces model at this stage? Ie. Why would we do
such analysis, if any?

The value is to understand the new market customer needs. If the market already exists, what
would be the market’s next steps to develop a competitive advantage.

3. Which of the 6 forces discussed so far are the most important ones to evaluate?

The market is the most important one, because even when this is a neighbor country we need to
understand the market before we do any investment.

4. What would you think/guess are the most important entry barriers in this case, and is it
possible to obtain quantitative measures?

- The regulatory norms in the payroll

- Some companies are not willing to exchange internal payroll information
We will propose this statement based on analyzing your organization. There were some parts that
we can improve to help your company succeed in the future. We found that the root of the
challenge is inadequate communication within the company. In fact, each department did not
communicate aggressively, and the executives' vision did not inform the whole organization.
This lack of communication may delay company growth and prevent innovation. Therefore, we
must change our communication culture together.
Our goal is to change your culture from closed- communication to open communication. Open
communication can make the company more productive and innovative, a competitive advantage
in the market. We set two practical steps to achieve this goal: Implementation Feedback system
and Restructuring organization flow. Then, we will explain the steps in the next slide in more
detail.