6.4 Market Selection Scouter (Martin)

Systematically evaluates and chooses which markets to enter based on fit and potential. Launch on platform.

What is it?

Martin’s Market Selection Framework, developed by strategist and thinker Roger Martin, provides a practical, structured approach to choosing the most attractive markets in which to compete. It helps leaders and organizations systematically evaluate and prioritize market opportunities based on clear strategic criteria, enhancing the likelihood of sustainable growth and competitive success.

Why is it useful?

Applying Martin’s Market Selection helps you to:

Prioritize strategically: Clearly identify markets that offer the greatest potential for success. Reduce uncertainty: Systematically evaluate markets against key selection criteria, clarifying decision-making.
 Optimize resource allocation: Ensure resources and investments are concentrated in the most promising opportunities. Enhance competitive advantage: Select markets that align closely with your strengths, differentiators, and strategic goals.

How does it work?

Martin’s Market Selection involves evaluating potential markets against five critical dimensions:

1

Market Attractiveness

Characteristics: Size, growth rate, profitability, and competitive intensity.

Approach: Choose markets clearly demonstrating high growth potential and profitability.

Example: Rapidly growing digital health markets vs. slower-growing traditional healthcare services

2

Competitive Advantage


Characteristics: Ability to differentiate, unique strengths or capabilities relative to competitors.

Approach: Select markets where your organization can establish or maintain clear competitive differentiation.

Example: Entering a niche luxury market leveraging your strong brand; avoiding commoditized markets with intense price competition.

3

Strategic Fit

Characteristics: Alignment with your organization's overall vision, goals, and strategic strengths.

Approach: Prioritize markets clearly aligned with your strategic direction and organizational capabilities.

Example: Choosing markets that leverage existing technological capabilities, aligning with sustainability goals or brand reputation.

4

Implementation Feasibility

Characteristics: Ease and practicality of entering and succeeding in the market.

Approach: Evaluate clearly how easily your organization can implement and sustain market entry strategies.

Example: Considering regulatory ease, existing distribution networks, and manageable logistical challenges.

5

Risk and Uncertainty

Characteristics: Degree of external uncertainty, volatility, or potential downside risk.

Approach: Assess markets based on their risk profile, balancing opportunities against clear potential downsides.

Example: Evaluating political stability, economic volatility, or technological disruption risks in a given market.

Turning Martin’s Market Selection into Action

To practically apply the framework:

• Evaluate systematically: Rank potential markets clearly against each dimension.

• Prioritize decisively: Select markets showing strong alignment across multiple criteria, maximizing strategic coherence.


• Adjust dynamically: Regularly revisit market choices, updating your selection criteria based on evolving market conditions.