The Decision Analysis

Table of Contents

1. Body Of Analysis 2

1.1. Introduction 2

1.2. Market Entry Alternatives 2

1.3. Risks, Uncertainties and Mitigation Strategy 4

1.4. Decision Support System Proposal 5

2. Critical Discussion 5

3. Conclusion 6

4. Bibliography 6

1. Body Of Analysis

1.1. Introduction

The problem facing SolPure Water Solutions (“SolPure”) is to decide whether to invest your money to enter a new urban market in Eastern Europe and how to do it. SolPure has 3 options for entering the market, which are: (i) with a pilot launch; (ii) with a full-scale entry; and (iii) by postponing the move until more market signals emerge.

SolPure focuses on sustainable development and social change by providing low-cost sources of purified water to underserved populations and areas. Typically, project stakeholders are low-income and would not be able to afford the standard costs of this service. Therefore, external investors are needed to support the project and make it viable. SolPure’s main objectives include serving new populations in need of clean water, helping the environment, making a social and ecological impact, increasing market share, and maintaining a positive image. The key values are providing access to clean water and driving innovation, ensuring an equitable system through this project.

Success in this context would mean achieving consumer acceptance, being able to deliver the proposed work ensuring purified water for everyone, contributing to the development of the environment and ensuring a financial return for the company. Otherwise, limitations involve a limited budget for the initial investment, which can be detrimental to the implementation of the project, in addition to the uncertainty of how consumers will adhere to the project and the legal and structural bureaucracies related to it.

SolPure needs to analyze all the factors it may face, to be able to deal with risks and uncertainties, without compromising its fundamental objective. Good decisions result from a strong process, not just favorable outcomes (Grigorik, 2023).

1.2. Market Entry Alternatives

SolPure faces 3 strategic alternatives to entry into the market. The primary one is a pilot passage into 2 cities, which would permit the company to define clear objectives, analyze data, test public acceptance, deal with bureaucracy on a small scale (that is easier to manage) and attract investors to expand the project. This approach allows the initial investment to be lower, ensuring that the company can save part of the money it has and guarantee security to deal with financial problems that are common at the beginning of any company. Also, the company will be able to prepare the expansion with more information and time for adaptation. This technique allows a lower risk, while still allowing maintainability and ensuring decentralized water refining arrangements. However, it leads to a delay in the expansion of trade.

An example of a company that made a pilot entry was Dropbox, with very positive results, as the company was able to refine its product and build a strong foundation for its eventual public release (FasterCapital, 2025, section 2).

The second alternative could be a full-scale market launch, which implies investing all the money the company has saved, with no reserve in case in case deals are not as anticipated. The greatest advantage of this choice is the impact that the company's market entry will have, ensuring that more people have access to the service and the sustainability proposal that the project proposes, conveying a financial return in case of full victory and a gigantic social effect. However, choosing a full-scale entry carries the highest risk as customer reaction and administrative arrangement are still dubious.

An example of a large-scale entry was the case of Walmart in the German market. The store, which was a success in the US, invested in several cities in Germany, but was unable to adapt its business model to the local culture, facing resistance from consumers (Hamza and Nizam, 2016).

The third option is to delay the advertising section for 6 to 12 months, which would allow SolPure time to assemble extra information, assess competitors, and reinforce its imperative associations. In addition to not generating any financial gain, the misplaced opportunity can be colossal, especially if a competitor enters the market before SolPure. The approach is cautious since it permits greater initial preparation, reducing the risk of encountering problems with bureaucracy, for example. Either way, it is possible that the company will essentially postpone the problems that are inevitable in any major venture, failing to advance its mission during this period.

An example for understanding the impact of the delay in the market was the case of Nike in 2010, that delayed FuelBand’s launch by 6 months, losing market led to Fitbit and Jawbone. Sales fell short, and FuelBand was discontinued in 2014 (Rusantosh, 2024).

1.3. Risks, Uncertainties and Mitigation Strategy

SolPure is subject to different risks and uncertainties, which must be considered in advance to enable a strategic response. The first risk is the financing risk, since the investment made in the project is high in beginning and throughout its execution. To guarantee the service proposed, which is to supply purified water in underserved areas, a high investment is required in logistics, equipment and in the structure that makes the operation viable, in addition to marketing expenses to publicize the project. Infrastructure costs in water treatment projects typically represent between 50% and 70% of the total investment, depending on the scale and technology used (Our Mechanical Center, 2023)

To mitigate this problem, SolPure should look for investors aligned with its foundational goals, such as impact investment firms, development finance organizations, or charitable funding, prior to launching. Additionally, they could look for other types of approaches, like ongoing revenue to ensure consistent cash flow, e.g. subscription services or pay-per-use options.

The second risk is dealing with administrative and regulatory barriers. Entering a new area can come with legal limitations