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European Expansion
Our client is a U.S.-based consumer electronics manufacturer considering entering the German market with its smart home devices. How would you evaluate whether this expansion makes sense?
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📋 Solution:
European Expansion
Clarifying Questions:
• Is the client considering entering organically, through partnership, or via acquisition?
• Are we targeting a specific customer segment in Germany or the mass market?
• What is the primary objective: revenue growth, strategic positioning in Europe, or diversification?
Solution:
I would structure this decision around market attractiveness, competitive positioning, and financial feasibility.
- Market attractiveness
• Size the German smart home market and assess historical and projected growth.
• Segment customers by income, housing type, and adoption of connected devices.
• Identify regulatory or technical standards that could impact entry.
- Competitive landscape and differentiation
• Map existing competitors and their positioning.
• Assess product differentiation opportunities such as price, ecosystem compatibility, or brand perception.
• Identify barriers to entry including distribution access and switching costs.
- Financial viability and entry strategy
• Estimate expected revenues based on realistic share capture assumptions.
• Model entry costs including marketing, localization, and distribution setup.
• Compare entry modes to determine risk, control, and capital intensity.
