Five things to consider when investigating business growth opportunities in new markets:
1. Quantify the Customer
Ensure you thoroughly understand your target customer, their location, needs and drivers.
2. Market Research, Research, Research
Developing an in-depth understanding of the market niche for your business, forecasted demand, competitors and barriers to entry will help you clarify the potential opportunity.
3. Transferable Skills
Assess what skills and capabilities your staff currently have that could benefit you in a new industry. Perhaps consider what sales, systems or relationships you could draw on to help lower the time it takes for you to begin successfully trading in the new market.
4. Rank the Low Hanging Fruit
Once you understand the above areas, it is important to prioritise what markets or opportunities appear to have the best chance of success, whilst understanding how you will exit the market should things not go to plan.
5. Market Entry Options
Once you’ve committed to a market, consider all options for trading in that market. For example, do you want to partner with an existing company, acquire an existing player, or pioneer your own approach?
Time for Activation
Following this process, you’ll develop the business plan, case for investment and an implementation plan with identified leads, timelines, tasks and milestones. Undertaking these steps will not guarantee success but will at least help you plan and minimise the risks of entering a new market.
New Market Opportunities | A look at renewable energy
With the ongoing downturn in the oil and gas industry, many supply chain companies are looking at entering new industries to grow their business, providing an interesting case study on new market entry. The renewable energy industry is diverse and vast, covering a multitude of energy sources such as wind, solar, geothermal, hydrogen, and biomass to name a few. Where should companies even begin to start looking for new opportunities?
Considering the above five areas will pay dividends in years to come by helping them identify what new markets to enter. Investing resources at an early stage to analyse markets thoroughly, including strict rationale with what markets you select, will help establish a foundation upon which to identify the right business growth opportunities.
For example, evidence from Bloomberg New Energy Finance (BNEF) suggests the offshore wind market appears the nearest term growth opportunity of scale, with forecasts anticipating growth in the global offshore wind market at a 16% compound annual rate from 2017 to 2030. BNEF anticipates the core markets in the UK, Germany, the Netherlands and China will drive installations, but in the following decade, Taiwan and the US will also become significant markets.
If you’re looking to enter a new market take a look at how we would help you investigate new opportunities and breakthrough.
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