Sequenced Entry Framework
Enter a new industry through a series of strategic moves
This framework outlines the key considerations for companies looking to enter a new industry through a series of strategic moves. It highlights the importance of identifying a target strategic group, accumulating knowledge and brand identification, and managing risk.
- Identify a target strategic group to enter
- Accumulate knowledge and brand identification in the industry
- Manage risk through a series of strategic moves
- Identify a Target Strategic GroupDetermine the strategic group to enter, based on factors such as market growth, competition, and profitabilityPro tipConsider the competitive position of the target group and the potential for growth and profitabilityWarningFailing to identify a target strategic group may lead to poor market positioning and reduced profitability
- Accumulate Knowledge and Brand IdentificationAccumulate knowledge and brand identification in the industry, through market research, product development, and marketing effortsPro tipFocus on creating a strong brand and accumulating knowledge about the industry and its customersWarningFailing to accumulate knowledge and brand identification may lead to poor market positioning and reduced profitability
- Manage Risk through a Series of Strategic MovesManage risk through a series of strategic moves, such as entering the market through a joint venture or acquisitionPro tipConsider the potential risks and rewards of each strategic move and adjust the entry strategy accordinglyWarningFailing to manage risk may lead to poor market positioning and reduced profitability
Procter and Gamble's Entry into the Paper Products Industry
Procter and Gamble entered the paper products industry through a series of strategic moves, including the acquisition of Charmin and the development of new products
OutcomeThe entry was successful and generated significant returns for Procter and Gamble shareholders
Failing to Identify a Target Strategic Group
Failing to identify a target strategic group may lead to poor market positioning and reduced profitability
Failing to Accumulate Knowledge and Brand Identification
Failing to accumulate knowledge and brand identification may lead to poor market positioning and reduced profitability
Failing to Manage Risk
Failing to manage risk may lead to poor market positioning and reduced profitability
The Sequenced Entry Framework was developed by Michael E. Porter as part of his work on competitive strategy. It is based on the idea that companies can create value by entering a new industry through a series of strategic moves.
Source · BOOK
Competitive Strategy