Benefits of entering a new market
- Hedd Freeman
- February 1, 2016
- 21,694 views
Globalization is everywhere around us. A more inter-connected world means more accessibility to products and services around the globe. Everyday more and more businesses are entering new markets, but why? It can not only be a profitable in terms of revenue but can also improve the way businesses work as well as benefit the market you move in to.
Arguably the biggest advantage of entering a new market is simply having a whole set of new consumers at your fingertips who are edging to buy the product and service. Not only are there more people who could potentially buy the offering but it is also possible diversify your market; this may be focusing in on a more exclusive target market. A larger consumer market ultimately means a larger profit margin available which is great news to any business owner.
Expanding to a different market can improve a businessman’s knowledge; allowing your business expertise to grow. Learning about the new market and how it is different to the home market, what works well and adapt it to how it is sold everywhere. Different technology and techniques are present in different markets and entering them can contribute to learning more about them.
Some people might say it’s playing it safe by staying solely in the home market however having presence in more than one market also spreads risk. The business is not totally dependent on one market and if one fails, perhaps through recession, there is still a functioning consumer base elsewhere.
Not only does it benefit the company, but also the market itself. You wouldn’t like to walk in to your shop and only to find one brand of Shampoo would you? Entering a market with a new product or service means the customers have access to a wider range of products to choose from, this could mean they are better quality or just different to their home brands. As well as more variety, more products mean more competitive prices for the brands they want.
Entering new markets can create great value to a business; however it is essential that you do your homework! Learning about your market including corporate culture, employee and customer expectation is vital, without this the risk of failure is extremely high. Stepes uses native translators to ensure advertising, marketing and documents are correctly translated and the message you want is portrayed in a culturally sensitive way to accept you into the market.