To stop your business from attaining a saturation point, it is important to make sure you have a strong market expansion strategy to move your business forward. A market expansion strategy is all about knowing the needs of your consumers, segments, and unmet customers to device a targeting plan.
Any company may decide to expand, either looking for new market niches in existing countries or seeking new markets for market segments already identified and addressed. Even if the expansion strategy seems irrelevant to small businesses and start-ups now it will be helpful in the future. It’ll be wise to come up with the strategies early.
Businesses rise and fall with the economy of a country. But with the right expansion strategy, you can make sure your business grows independent of the wider economy. Listed below are 5 tips for a strong market expansion strategy.
Introducing New Products And Services
It will be hard to tap more sections of the audience with existing products & services. After a while, you need to expand your business by introducing some new products or services. This may seem simple but it requires proper research for positioning the product among the audience.
Increasing Sales Of Current Products And Services
Instead of expanding the range of products and services you offer you can capture the unmet market by increasing the sales of the existing products. Once you’ve worked this out, you can focus your marketing on this group.
Expand Across New Areas
To expand across new areas you need to know about the age, sex, and geography, in other words, you need to conduct demographic research to know about the market base.
Diversification is one of the four alternative growth strategies in the Ansoff Matrix. A diversification strategy achieves growth by developing new products for completely new markets. As such, it is inherently more risky than product development because by definition the organization has little or no experience of the new market. In addition, the new skills needed both in terms of marketing and operations often require substantial investment. This is usually achieved by acquiring an organization already operating in the new market.
Merging With Other Business
The fastest way to expand your business is by merging or acquiring another company. This way you can significantly grow your company overnight.
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