Market entry consulting is a professional management consulting service, which involves in-depth analysis of the target market, including market size, growth rate, profit margin, consumer demand, competitive landscape, laws and regulations, etc. The purpose of market entry consulting is to help companies determine whether it is necessary and feasible to enter a certain market, and how to choose the best market entry method and time point to maximize returns and minimize risks.

The three models commonly used in market entry consulting are: Porter's Five Forces Model, Boston Matrix and Blue Ocean Strategy. These models have their own advantages and disadvantages and applicable scenarios, and need to be used flexibly according to the specific situation.

Porter's Five Forces model was developed by Harvard University professor Michael Porter in the United States.1979It is a tool for analyzing the competitive structure and profitability of the industry. The Porter Five Forces model argues that there are five forces that affect the level of competition and profitability in an industry: supplier bargaining power, buyer bargaining power, competitive intensity of existing competitors, barriers to entry by potential competitors, and threat of substitutes. By analyzing the size and changing trend of these five forces, we can judge the attractiveness and future development prospects of an industry.

Porter's five forces model is suitable for analyzing mature and stable industries, which can help enterprises understand their own industry environment, find out their competitive advantages and disadvantages, and formulate corresponding competitive strategies. For example, Champ Consulting once provided China market entry consulting services for a European automaker, and by using the Porter Five Forces model, Champ Consulting found that the Chinese automotive industry has a high degree of competitive intensity and low buyer bargaining power, as well as high barriers to entry for potential competitors and the threat of substitutes. Therefore, Shangpu Consulting recommends that the automaker adopt a differentiation strategy to attract high-end consumers by providing high quality, high-performance, high-safety and high-environmental-friendly cars, thereby gaining higher profit margins and market share.

The disadvantage of Porter's five forces model is that it ignores the influencing factors outside the industry, such as government policies, social culture, technological changes, etc., and it cannot adapt well to rapidly changing and innovative industries, such as the Internet, e-commerce, Biotechnology, etc. Therefore, Porter's five forces model needs to be supplemented and revised in combination with other models and methods.

The Boston Matrix was established by the Boston Consulting Group in the United States.1970It is a tool for analyzing a company's product portfolio and market positioning. The Boston Matrix divides a company's products or business into four types according to the two dimensions of market growth rate and relative market share: stars, Taurus, problem children and thin dogs. Stars refer to products or businesses with high market growth rate and high relative market share. They are the core competitiveness of enterprises and need to continuously invest resources to maintain the leading position. Taurus refers to products or businesses with low market growth rates and high relative market shares, which are cash cows for businesses and can generate stable cash flows that are used to support other products or businesses. Problem children are products or businesses with high market growth rates and low relative market shares, which are potential stocks of the business and require a significant investment of resources to increase market share or risk being overtaken by competitors. Skinny dogs are products or businesses with low market growth rates and low relative market shares that are a liability to the business and need to be considered for divestiture or abandonment.

The Boston Matrix is suitable for analyzing diversified companies, which can help them understand their product portfolio and market positioning, and make rational resource allocation and investment decisions. For example, Champ Consulting once provided Indian market entry consulting services for an American consumer goods company. Using the Boston Matrix, Champ Consulting found that the company had several different types of products or businesses in the Indian market, some of which were stars or Taurus, some of which were problem children or skinny dogs. As a result, Champ Consulting recommends that the company prioritize support for stars and problem children, properly maintain Taurus, and phase out skinny dogs, based on the principles of the Boston Matrix.

The disadvantage of the Boston Matrix is that it ignores the interactions and synergies between products or businesses, such as brand effects, cross-selling, economies of scale, etc., and it does not well reflect market changes and competitive dynamics, such as emerging products or technologies, changes in consumer preferences, competitor behavior, etc. Therefore, the Boston Matrix needs to be adjusted and updated in conjunction with other models and methods.

Blue Ocean Strategy was developed by French business school professor Kim Wain and Maubone.2005It is a tool to create and seize new market space. The blue ocean strategy believes that companies should not compete with competitors for limited market share in the red ocean, but should create untouched market space in the blue ocean, and meet the unmet needs of consumers by providing unique value propositions. High growth and high profits.

Blue ocean strategy is suitable for analyzing emerging or innovative industries. It can help enterprises jump out of traditional competitive thinking and find and develop new market opportunities. For example, Shangpu Consulting once provided consulting services for a Chinese online education company to enter the American market. By using the blue ocean strategy, Shangpu Consulting found that the company can use its own advantages, such as Chinese teaching, online interaction, personalized customization, etc. To create a new market space, that is, to provide high-quality, low-cost, convenient and flexible Chinese online education services for American primary and secondary school students, so as to attract consumers who are interested in Chinese but are limited by time, place, resources and other factors.

The disadvantage of the blue ocean strategy is that it ignores the difficulty and risks of creating and seizing the blue ocean, such as immature technology, uncertain market, imitation of competitors, etc., and it cannot adapt well to industries that have been formed or saturated, such as automobiles, Electronics, finance, etc. Therefore, the blue ocean strategy needs to be combined with other models and methods to verify and improve.

In short, market entry consulting is an important management consulting service that requires the use of a variety of models and methods for in-depth analysis and effective decision-making. Porter's Five Forces Model, Boston Matrix and Blue Ocean Strategy are the three major models commonly used in market entry consulting, all of which have their own advantages and disadvantages and application scenarios, and need to be applied flexibly according to the specific situation. As a professional management consulting company, Shangpu Consulting has rich market entry consulting experience and cases. It can provide customers with customized market entry consulting services, help customers successfully enter the target market and achieve sustainable development.