Market Entry Scorecard
Evaluate a market opportunity across 8 attractiveness factors. Score each factor from 1 to 5 to get an overall attractiveness score and a clear go/no-go recommendation.
Rate each factor from 1 (worst) to 5 (best). Higher = more attractive market.
Market Size
1 = Tiny, 5 = Very large
Growth Rate
1 = Declining, 5 = Rapid growth
Competition Intensity
1 = Fierce, 5 = Low competition
Barriers to Entry
1 = Very high, 5 = Low barriers
Regulatory Risk
1 = Heavily regulated, 5 = Light regulation
Customer Accessibility
1 = Hard to reach, 5 = Easy access
Profit Potential
1 = Low margins, 5 = High margins
Strategic Fit
1 = Poor fit, 5 = Perfect fit
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Making Smart Market Entry Decisions
Entering a new market is one of the highest-stakes decisions a company can make. It requires significant investment of time, money, and attention. A structured evaluation process helps ensure you are making this decision based on evidence rather than excitement.
The Multi-Factor Approach
No single factor should determine a market entry decision. A large market with fierce competition and heavy regulation may be less attractive than a smaller market with low barriers and strong strategic fit. This scorecard forces you to evaluate the complete picture rather than anchoring on one appealing metric.
Timing Matters
Market conditions change. A market that scores poorly today may become attractive as regulations evolve, competitors exit, or technology shifts create new openings. Revisit your scorecard periodically, especially when you see signals of change in any of the eight factors.
From Score to Strategy
The scorecard output is a starting point, not a final answer. A “Conditional Go” means you should develop a specific strategy to address the weak factors before committing fully. A “Strong Go” means conditions are favorable, but you still need a solid execution plan. Use the factor breakdown to prioritize what to address first.
Frequently Asked Questions
- What factors determine market attractiveness?
- The eight key factors are: Market Size (total addressable opportunity), Growth Rate (how fast the market is expanding), Competition Intensity (how crowded the market is), Barriers to Entry (capital, technology, or regulatory hurdles), Regulatory Risk (compliance burden), Customer Accessibility (how easy it is to reach buyers), Profit Potential (typical margins in the market), and Strategic Fit (alignment with your capabilities and goals).
- What is a go/no-go decision framework?
- A go/no-go framework is a structured method for deciding whether to enter a market, launch a product, or pursue an opportunity. It replaces gut feelings with systematic evaluation. Each factor is scored, weighted, and aggregated into an overall recommendation. This reduces bias and ensures all critical factors are considered before committing resources.
- How do I research a market I want to enter?
- Start with secondary research: industry reports, government data, trade publications, and competitor analysis. Then validate with primary research: talk to potential customers, interview industry experts, and test demand with landing pages or MVPs. Key data to gather: market size and growth rate, customer segments and pain points, competitive landscape, pricing benchmarks, and regulatory requirements.
- What are common market entry strategies?
- The main strategies are: (1) Direct entry — launch your own operations (highest control, highest cost), (2) Partnerships — joint ventures or channel partners (shared risk, shared reward), (3) Acquisition — buy an existing player (fastest but most expensive), (4) Licensing — license your technology to a local player (low risk, low control), (5) Organic expansion — gradually expand from adjacent markets. Choose based on your resources, risk tolerance, and competitive dynamics.
- When should I avoid entering a market?
- Avoid entry when: the market is declining with no signs of recovery, competition is entrenched with strong network effects, barriers to entry require resources you do not have, regulatory complexity exceeds your compliance capabilities, or the market does not align with your core competencies. A low score on this scorecard (below 16) suggests conditions are unfavorable — wait for conditions to improve or look for adjacent opportunities.