Market Entry Exit

---

name: market-entry-exit description: "Analyze barriers to market entry and exit. Use for market attractiveness assessment, competitive dynamics, and strategic planning."

---

Market Entry & Exit

Metadata

Name: market-entry-exit

Description: Barrier analysis for industry attractiveness

Triggers: barriers to entry, entry barriers, exit barriers, market attractiveness

Instructions

Analyze barriers that influence companies' decisions to enter or leave markets.

Framework

Types of Barriers

| Type | Description | Examples | |--------|-----------|-------------| | Structural Barriers | Economies of scale, capital requirements, brand equity | Manufacturing, utilities, telco | | Behavioral Barriers | Expected retaliation, customer switching costs, channel conflicts | Software, retail, services | | Regulatory Barriers | Licenses, patents, standards, tariffs | Pharma, finance, healthcare |

Porter's Exit Barriers Framework

| Barrier Type | Typical Indicators | |----------------|-------------------| | Entry Barriers | Capital intensity, brand loyalty needed, access to distribution, cost disadvantages | | Exit Barriers | Specialized assets, long-term contracts, strategic relationships, emotional attachment |

Entry Analysis

| Factor | Assessment | Impact | Rating | |----------|-------------|-----------|--------| | Economies of Scale | [Analysis] | High/Med/Low | [H/M/L] | | Capital Requirements | [Analysis] | High/Med/Low | [H/M/L] | | Brand/Reputation | [Analysis] | High/Med/Low | [H/M/L] | | Distribution Access | [Analysis] | High/Med/Low | [H/M/L] | | Regulatory | [Analysis] | High/Med/Low | [H/M/L] | | Overall Barriers | - | - | [Score] |

Exit Analysis

| Factor | Assessment | Impact | Rating | |----------|-------------|-----------|--------| | Specialized Assets | [Analysis] | High/Med/Low | [H/M/L] | | Contractual Obligations | [Analysis] | High/Med/Low | [H/M/L] | | Sunk Costs | [Analysis] | High/Med/Low | [H/M/L] | | Emotional Factors | [Analysis] | Medium/Low | [M/L] | | Strategic Fit | [Analysis] | High/Med/Low | [H/M/L] | | Overall Barriers | - | - | [Score] |

Output Format

## Market Entry & Exit Analysis: [Industry]
Entry Assessment
| Barrier Type | Rating | Description | Strategic Implications |
|-------------|--------|----------|-------------------|
| Economies of Scale | [H/M/L] | [Analysis] | [Implication 1] |
| Capital Requirements | [H/M/L] | [Analysis] | [Implication 2] |
| Brand/Reputation | [H/M/L] | [Analysis] | [Implication 3] |
| Distribution Access | [H/M/L] | [Analysis] | [Implication 4] |
| Regulatory | [H/M/L] | [Analysis] | [Implication 5] |
| Overall Entry | [High/Med/Low] | [Strategy] |
Exit Assessment
| Barrier Type | Rating | Description | Strategic Implications |
|-------------|--------|----------|-------------------|
| Specialized Assets | [H/M/L] | [Analysis] | [Implication 1] |
| Contractual Obligations | [H/M/L] | [Analysis] | [Implication 2] |
| Sunk Costs | [H/M/L] | [Analysis] | [Implication 3] |
| Emotional Factors | [M/L] | [Analysis] | [Implication 4] |
| Strategic Fit | [H/M/L] | [Analysis] | [Implication 5] |
| Overall Exit | [High/Med/Low] | [Strategy] |
Strategic Recommendations
Entry Strategy:
1. [Recommendation 1] - [Description]
2. [Recommendation 2] - [Description]
Exit Strategy:
1. [Recommendation 1] - [Description]
2. [Recommendation 2] - [Description]
Competitive Dynamics
| Dimension | Current State | Trend |
|-----------|--------------|----------|
| Number of Players | [Count] | [Increasing/Stable/Decreasing] |
| Intensity of Competition | [High/Med/Low] | [Trend] |
| Barriers to Exit | [High/Med/Low] | [Trend] |
Attractiveness Assessment
| Dimension | Rating | Rationale |
|-----------|---------|----------|
| Ease of Entry | [H/M/L] | [Reasoning] |
| Ease of Exit | [H/M/L] | [Reasoning] |
| Overall | [H/M/L] | [Reasoning] |

Tips

Assess both entry and exit - don't ignore leaving dynamics

Barriers change over time - monitor regularly

Consider industry lifecycle - mature vs growing

Evaluate both demand and supply sides

Regulatory barriers often outweigh market barriers

Exit analysis prevents sunk cost fallacies - be objective

```

References

Porter, Michael. *Competitive Strategy*. 1980. Chapters 2, 9.

Various strategic management and industry analysis sources

Assess both entry and exit - don't ignore leaving dynamics

Barriers change over time - monitor regularly

Consider industry lifecycle - mature vs growing

Evaluate both demand and supply sides

Regulatory barriers often outweigh market barriers

Exit analysis prevents sunk cost fallacies - be objective

```