flevyblog

Flevy Blog is an online business magazine covering Business Strategies, Business Theories, & Business Stories.
MANAGEMENT & LEADERSHIP STRATEGY, MARKETING, SALES OPERATIONS & SUPPLY CHAIN ORGANIZATION & CHANGE IT/MIS Other

5 Tips for Businesses Expanding into New Territories

Editor's Note: Take a look at our featured best practice, Market Entry Strategy (86-slide PowerPoint presentation). This deck outlines a market entry strategy and business development model for a technology company which was expanding its business in Asia. It analyzes the market dynamics of an emerging market in Asia and its development potential. To capture the opportunities and create market demand, the [read more]

Also, if you are interested in becoming an expert on Strategy Development, take a look at Flevy's Strategy Development Frameworks offering here. This is a curated collection of best practice frameworks based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. By learning and applying these concepts, you can you stay ahead of the curve. Full details here.

* * * *

The bigger your business becomes, the more you need to think about expanding your customer base, and once you’re a mid-sized enterprise, you’ll almost certainly want to move into new geographical territories. However, this sort of expansion brings a new set of challenges, so here are some things you’ll need to consider.

  1. Finding new markets

Before you decide to move into any new territory, you need to ensure you have the market to justify the expansion. Using tools such as Google’s Market Finder, you can see where the major markets are for your product or service, as well as useful information such as the annual spend in your category.

  1. Get people engaged online

Your social media team should start building excitement and anticipation of your expansion well in advance of your launch date. At the same time, you should also work on your overall digital strategy, thinking of some questions to ask your SEO agency and starting to think about paid search, e-mail marketing and more.

  1. Tailor your marketing to this different territory

It’s worth remembering that different areas will have people of different demographics, backgrounds, and cultures, so what works in one area might not work in another. Therefore, you may need to think about how you approach marketing, sales, social media, and other strategies, and although they still need to be on-brand, they should be appropriate for your new territory. Never rely on assumptions or outdated stereotypes about people overseas; make sure you have the analytics to back up your decisions.

  1. Consider using eCommerce first

There are a number of differences between brick and mortar and eCommerce stores, but when it comes to launching in a new territory, it’s worth considering trying eCommerce before you commit to launching brick and mortar outlets. This will give you an idea of whether it’s worth trying this territory, as well as allowing you to see which products and services are most popular in this new area. The costs of expanding online to a new territory are usually much lower than seeking retail properties, so it may make sense to try this approach.

  1. Get the right team together

One of the best ways to tackle expanding into a new territory is to hire a team who already knows the location well. By finding local talent, you can get a better insight into how your industry works in this new location and have a better chance of success.

Moving to a new territory is an excellent way to open up a new customer base and grow your brand, but it does come with a number of challenges. It’s important to find the right markets in which to expand, plus have the right team and business strategy to give you the best possible chance of success. By getting people engaged online via social media and eCommerce, it’s easier than ever to do a soft launch and see whether there is demand for your products, without having to spend large amounts on expansion plans.

19-page Word document
The proposed marketing plan has been made for a new company entering into the UK's beauty product markets. With minimal knowledge of the vast and competitive UK market the company has to undertake a thorough research about various components of the marketing plan. The first part of the plan deals [read more]

Want to Achieve Excellence in Strategy Development?

Gain the knowledge and develop the expertise to become an expert in Strategy Development. Our frameworks are based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. Click here for full details.

"Strategy without Tactics is the slowest route to victory. Tactics without Strategy is the noise before defeat." - Sun Tzu

For effective Strategy Development and Strategic Planning, we must master both Strategy and Tactics. Our frameworks cover all phases of Strategy, from Strategy Design and Formulation to Strategy Deployment and Execution; as well as all levels of Strategy, from Corporate Strategy to Business Strategy to "Tactical" Strategy. Many of these methodologies are authored by global strategy consulting firms and have been successfully implemented at their Fortune 100 client organizations.

These frameworks include Porter's Five Forces, BCG Growth-Share Matrix, Greiner's Growth Model, Capabilities-driven Strategy (CDS), Business Model Innovation (BMI), Value Chain Analysis (VCA), Endgame Niche Strategies, Value Patterns, Integrated Strategy Model for Value Creation, Scenario Planning, to name a few.

Learn about our Strategy Development Best Practice Frameworks here.

Readers of This Article Are Interested in These Resources


6-slide PowerPoint presentation
This deck will guide you through the process of building a business case for entering new markets. It was used within the strategy & new business development group within a top tier, multi-billion dollar company for all new market entries.


 
22-page Word document
 
 
23-page Word document

About Shane Avron

Shane Avron is a freelance writer, specializing in business, general management, enterprise software, and digital technologies. In addition to Flevy, Shane's articles have appeared in Huffington Post, Forbes Magazine, among other business journals.




Complimentary Business Training Guides


Many companies develop robust strategies, but struggle with operationalizing their strategies into implementable steps. This presentation from flevy introduces 12 powerful business frameworks spanning both Strategy Development and Strategy Execution. [Learn more]

  This 48-page whitepaper, authored by consultancy Envisioning, provides the frameworks, tools, and insights needed to manage serious Change—under the backdrop of the business lifecycle. These lifecycle stages are each marked by distinct attributes, challenges, and behaviors. [Learn more]

We've developed a very comprehensive collection of Strategy & Transformation PowerPoint templates for you to use in your own business presentations, spanning topics from Growth Strategy to Brand Development to Innovation to Customer Experience to Strategic Management. [Learn more]

  We have compiled a collection of 10 Lean Six Sigma templates (Excel) and Operational Excellence guides (PowerPoint) by a multitude of LSS experts. These tools cover topics including 8 Disciplines (8D), 5 Why's, 7 Wastes, Value Stream Mapping (VSM), and DMAIC. [Learn more]
Recent Articles by Corporate Function

  

  

  

  

  


The Flevy Business Blog (https://flevy.com/blog) is a leading source of information on business strategies, business theories, and business stories. Most of our articles are authored by management consultants and industry executives with over 20 years of experience.

Flevy (https://flevy.com) is the marketplace for business best practices, such as management frameworks, presentation templates, and financial models. Our best practice documents are of the same caliber as those produced by top-tier consulting firms (like McKinsey, Bain, Accenture, BCG, and Deloitte) and used by Fortune 100 organizations. Learn more about Flevy here.


Connect with Flevy:

     
  


About Flevy.com   /   Terms   /   Privacy Policy
© . Flevy LLC. All Rights Reserved.