Venturing in to a new business vertical inherently involves addressing risks and challenges relating to target product-market combination. More often than not, promoters and business managers rely on intuitive wisdom and experience to decide the way forward. While Instinct is an inherent part of human nature, it is likely to be biased.
A rational approach in developing a business entry strategy is to balance instinct with insights to reduce risks in the strategic planning exercise. Detailed due diligence exercise to map the business environment and supply-demand balance will aid informed decision making.