Growth is never by mere chance; it is the result of forces working together.
– James Cash Penney, Founder of JCPenney
A business essentially aims at a steady growth in contrast to the zig-zag growth curve. Expansion is the key way to amplify one’s reach and enhance the global image; the expansion can be demographic, geographical, i.e. by introduction of new products in existing market or introducing the existing product in a new market.
Therefore, a few aspects must be thoroughly assessed while entering new markets:
- Ace the walk before running.
Imagine yourself as a cab driver. When you learn driving, you are advised to know all the parts of the car before you try driving and eventually racing. Similarly, before you try your hand in a new market, make sure you operations are stable and robust in your current market(s). A stronger foundation will help you sail through the hurdles faced in the new market and establish operations sooner.
- Know the mountain you are climbing.
Jumping at every visible chasm is stupidity. It is only smart to identify potential market entry nodes with optimal investments and more probability of success. Just like a cab driver, you should know all the routes that lead to your destination and know which could be optimal, considering key parameters like ROI, growth rate, risk factor, etc.
- Know before you leap.
Knowledge of new market,regulations, trends and key players is vital in the risk assessment of the expansion. This knowledge also helps one use their own strengths against the competitors’ weaknesses and develop a strong USP.It never hurts to start small and it is found critical to involve local employees to better understand prospective customers’ expectations.
- Learn your customers (KYC!).
It is not advisory to “only” sell more products / services in a new market; instead it is ingenious to know why your customers buy your product, what they used earlier,what prompted them to switch, etc. Utilizing this knowledge, you can exploit their needs and provide them with what they exactly WANT rather than what you HAVE. Your product should meet your customers’ needs.
- Device the battle plan.
Make sure your business plan covers all possible outcomes – success, failure, mixed response. Prepare emotionally for planned outcomes, but prepare rationally for the unpredictable outcomes.
- When you need to fall back and withdraw.
No matter how much we avoid road accidents, we always need to be prepared in case it happens. How to handle this? Get medical insurance? What about the damage to the car? Similarly in the corporate world, lay out the action plans for the unprecedented turn of events and mitigate the damage. How do you handle losses? What if your product doesn’t make the mark? What do you do to retreat? Answer these questions and you are all set to make a strong entry!
- ALWAYS Keep a check!
Review your progress after crossing each step. Evaluate whether the execution is coming along as planned or not. Are the results better or worse than planned? Do you need to change or modify the approach? Even after entering the market, you need to calibrate the benchmarks as per real time outcomes while your move forward. Even better would be to have your performance evaluated periodically by a mentor.
iSBS research equips you with comprehensive information about potential market size, key consumers, distribution channels, etc and aids you in evaluation of new business commitments & initiatives. One of our primary methods to accomplish these parameters is Primary Research initiatives. The engagement with professionals, the human insight and a personal touch establishes a credibility and affability that allows a clearer picture than template questionnaire.
Want to know how we can help you in Research & Market Evaluation? Let our work speak!