Formal Planning The process of formal planning to establish entry strategies begins with an evaluation of the environment and the evidence from the market than there is a need for the new product or service (Figure 12.1). Actually the formal process permits the entrepreneur to compare the concept of the venture with the direction of trends that are evident in the marketplace. In this discussion, the new venturist analyzes the initial product in terms of what the original ides for the start-up , or develop a new product to suit. Conron Ltd. conducted industrial research and an environment scan to test the hypothesis that there was demand for industrial plumbing expansion joints. What prompted the evaluation was an opportunity to produce and sell industrial products under licence to Solar products Inc., located in San Diego, California. They research found the Canadian market to be saturated, but there was in fact a niche opportunity for a highly sophisticated expansion joint for nuclear reactors that Canron subsequently entered.