Market Selection Matrix
Systematic framework for prioritizing which markets to enter once migration decision is made.
Systematic framework for prioritizing which markets to enter once migration decision is made. Replaces gut-feel market selection with weighted scoring across strategic dimensions.
When to Use Market Selection Matrix
Use after Migration Decision Matrix confirms you should expand. Apply when choosing between multiple potential markets for international or regional expansion.
How to Apply
Score Market Readiness (25% weight)
Evaluate language barrier (10=English, 7=European, 4=Asian), business culture similarity (10=high, 6=medium, 3=low), payment infrastructure (10=standard cards, 5=local payments, 2=cash)
Outputs
- Readiness score 0-10
Score Market Size (30% weight)
Evaluate TAM (10=>$1B, 7=$500M-1B, 5=$100-500M, 2=<$100M), growth rate (10=>15%, 6=5-15%, 3=<5%), ARPU potential (10=U.S.-level, 6=20-40% discount, 3=60%+ discount)
Outputs
- Size score 0-10
Score Competition (20% weight)
Evaluate local competitors (10=none, 8=1-2 early, 5=3+ funded, 2=dominant incumbent), U.S. competitors (10=none, 7=planning, 4=already entered). Adjust ±2-3 for network effects.
Outputs
- Competition score 0-10
Score Regulatory Environment (15% weight)
Evaluate ease of entry (10=minimal barriers, 6=GDPR compliance, 2=China-level restrictions), licensing requirements, IP protection strength.
Outputs
- Regulatory score 0-10
Score Network Effects Amplification (10% weight)
Evaluate cross-border usage potential (10=high, 6=medium, 3=low), talent/ecosystem density (+2 bonus for concentration).
Outputs
- Network score 0-10
Calculate Weighted Total and Tier
Apply weights: (Readiness×0.25) + (Size×0.30) + (Competition×0.20) + (Regulatory×0.15) + (Network×0.10). Tier 1: >8.0 (enter immediately), Tier 2: 7.0-8.0 (enter after proving Tier 1), Tier 3: <7.0 (delay).
Outputs
- Weighted score
- Market tier ranking
- Entry sequence