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Hard Market Entry Strategy Financial Analysis

Mapflix Nollywood

#Tech #Media & Entertainment #Streaming
ProHub Comment

This is a comprehensive market entry case that progresses logically from market sizing through strategic option evaluation to financial valuation and final recommendation. It tests both quantitative (market sizing calculations, NPV modeling) and qualitative skills (strategic framework analysis, risk assessment), with the partnership option emerging as optimal due to lower capital requirements and regulatory/infrastructure risk mitigation in an emerging market context.

Estimated Time 15 minutes
Difficulty Hard
Source Duke
50 / 100
Our client is Mapflix, a US-based video streaming company that streams movies/shows over the internet. Mapflix has established market leadership for online content/video streaming in the US/Europe, and has successfully entered emerging/growth markets such as Mexico, Brazil, and India. Mapflix CEO, Chris Bosh, is interested in expanding into Africa, and believes Nigeria would be a great market to enter. Before doing so, Chris Bosh has hired our team to provide a go/no-go recommendation on this opportunity. What are the factors Mapflix should consider when deciding to enter Nigeria?

Clarifying Information

  1. Mapflix goal is to achieve positive NPV
  2. Competitors: No other major competitors have entered Nigeria, though there is a relatively small local provider
  3. Content: Mapflix desires to stream its current content library and acquire the rights to stream local content, as the Nigerian film industry (‘Nollywood’) is the 3rd largest in the world
  4. Economic conditions: Nigeria’s GDP, wage growth, streaming services market penetration are growing annually by double digits