Sure. First, it was great pleasure to work on this project so far and look into the U.S. toy market attractiveness. Based on the initial assessment, this market seems like a potential lucrative opportunity and we would recommend Sunshine Apparel to proceed with its entry strategy
Reasoning:
- First, the U.S. toy market is $33B and sky-rocketed in 2020 due to the increase in home childcare during the pandemic
- Secondly, the competitive landscape seems favorable as it’s crowded and there is no dominant player which offers a fair opportunity to win a market share
- Thirdly, Sunshine Apparel might capture some synergies by entering the toy space
Risks:
There are some risks, however, to keep in mind. It might take time to reach a break-even point, there might be limited appetite for client’s toys especially if they aren’t too differentiated, and finally this product expansion might increase operational complexity of Sunshine Apparel’s business considerably
Next steps:
As for the next steps, I’d suggest designing a go-to-market strategy, developing a risk mitigation plan, and assess the competitive landscape a bit in more detail