Other than brand new startups, companies typically have to consider entering new markets when their core markets start declining, or they have outgrown their core market and need new markets to continue to grow.
In either case, there are significant risks and challenges to overcome. Our experiences have shown that there are certain best practices for mitigating the risks inherent in entering any new market, so as to achieve desired business results in the most cost effective way possible.
Nothing substitutes for doing one’s homework before venturing on a high-risk high-reward Endeavour such as entering a new market. Many an experienced business person has found out exactly how costly it is not only to succeed in a new market, but especially to fail in one.
Our recommendations are to follow the best practices which include: Making a clear and real commitment to dominate the market you enter; clearly identifying the best entry point; defining your market entry strategy; assembling your market entry playbook; validating your assumptions; piloting your Playbook; Ramping up the right way; and having a proper exit plan if things don’t work out.