Market Entry
Decision-Making Framework
Angie Simon, PE
President, Western Allied Mechanical, Inc.
Mounir El Asmar, PhD
Co-Director, The National Center of Excellence on SMART Innovations
Senior Sustainability Scientist, Global Institute of Sustainability
Electri Council
Purpose Meeting
Chicago, IL
July 13-14, 2015
Process
Payoff
New Horizons Foundation
• A Chance to Grow:
We turn good ideas into solid results that will
position HVAC and sheet metal contractors as
positive, knowledgeable, and key participants in
the construction process.
Purpose
Process
Payoff
Market Entry
Decision-Making Framework
Angie Simon, PE
President, Western Allied Mechanical, Inc.
Mounir El Asmar, PhD
Co-Director, The National Center of Excellence on SMART Innovations
Senior Sustainability Scientist, Global Institute of Sustainability
Electri Council
Purpose Meeting
Chicago, IL
July 13-14, 2015
Process
Payoff
Purpose
Process
Payoff
Purpose
Process
Payoff
Sustainable Performance
Purpose
Process
Payoff
Cost Engineering
Purpose
Process
Payoff
Design-Build
Purpose
Process
Payoff
Integrated Project Delivery
Project Quarterback Rating
IPD provides superior
overall project
performance.
Purpose
Process
Payoff
Applied Research
•
•
•
•
•
…
Design-Build Institute of America
First Solar
U.S. Department of Transportation
New Horizons Foundation
Purpose
Process
Payoff
Motivation
• Growing by entering new
markets is a RISK
• BUT consistent processes
improve outcomes
Purpose
Process
Payoff
Objective
• The objective of this applied research is to
increase a contractor’s likelihood of
success when entering a new market
Purpose
Process
Payoff
Market Entry Decision
Types
Where we do it / Who we do it with
Same
•
•
•
•
•
Same
What
we do
•
•
New
Purpose
New
•
•
Geographical
Size of projects
Type of projects
Type of customers
New business form
(e.g. joint venture)
Add a new trade
Add contracting
service
New technology
New processes
(e.g. prefabrication)
Process
Payoff
Industry Survey
Types of decisions you have been involved in, in the past 10 years
Take on a new project type
60
Increase project size
42
Add HVAC service
45
Add a trade
32
Expand geographically
56
0
Purpose
20
Process
40
60
80
Payoff
Industry Survey
Percentage of companies using
a formal, written decision process?
Respondents = 93
Purpose
Process
Payoff
Industry Survey
Using a formal, written decision process
6%
Using an informal method of decision making
Respondents = 93
Purpose
Process
Payoff
Deliverables
Market Entry Decision-Making Toolbox
to guide and
structure
considerations
when making
market entry
decisions,
step by step
Purpose
(includes Strategic Planning primer)
to organize the
plan of the
company
Process
Education
to build “knowhow” and
confidence in
using the tool
Payoff
Phased Approach
Phase 1 .
•
•
6 months
Case Studies
Purpose
Phase 2
•
•
6-9 months
Build and Test Toolbox
Process
Payoff
Purpose
Process
Payoff
Purpose
Process
Payoff
Job timeframes
Industry acceptance
Global economy
Delivery system/contract type
Bonding agency acceptance
8.0
Reputation
9.0
Standards and regulations
Market trends
Contract requirements
Knowledge of market
Training and learning curve
Staff availability
Customer acceptance
Support from organization
Labor commitment
Investment capital
Competitive Advantage
Start up costs
Competition in market
Profit projections
Strategic fit
Experience and Abilities of
Champion
Market need
Average Score
Prioritized decision factors
Group Score
7.0
Individual Score
6.0
5.0
4.0
3.0
2.0
1.0
0.0
Key Tenet: Simplicity
Market Entry Decision-Making
Framework
Case Studies
Resources
Education
Purpose
Process
Payoff
Market Entry
Decision-Making Framework
Angie Simon, PE
President, Western Allied Mechanical, Inc.
Mounir El Asmar, PhD
Co-Director, The National Center of Excellence on SMART Innovations
Senior Sustainability Scientist, Global Institute of Sustainability
Electri Council
Purpose Meeting
Chicago, IL
July 13-14, 2015
Process
Payoff
What’s in it for Electri?
• More data results in a more
comprehensive and robust framework
• Different factors particular to electrical
construction
• Leveraging resources with the New
Horizons Foundation
• Create resource that is valuable to all
trade contractors
Purpose
Process
Payoff