They haven’t pulled the trigger…yet. With competing interests of third parties (platforms, agencies, employees, managers) stakes are high. Two key people are responsible. Luckily, they seem both sensible and experienced.
After meeting us, here is how they plan to mitigate risk:
1. SOPs, launch plans and ground teams audited
2. Market benchmarks set…POS hard data only
3. Operator contract requires guaranteed inventory buy
4. Custom flagship has unique traffic routing features
5. Price and inventory arbitrage suppressed
While not perfect (activation budgets are low), this may work.
Other moderate to severe risk factors include entry model (not ideal for cross border), product-market fit, traffic support, awareness levels, size of sub categories and growth rates and pressure from overseas dealers on authorized channels.
…Of the points above, which do you think could have the biggest impact on success?