New Market Study
New Market Study
Expanding into a new market can be an effective way to leverage your core business
for growth. But it takes a disciplined process to accurately assess
the potential of each growth opportunity, because a bad bet can bog down your business.
Investing the appropriate level of resources in market analysis, selection, and entry method can create a foundation for success in the chosen market. We suggest following five steps to properly assess the opportunities and risks of a new market.
Define the Market : Clearly defining your market may seem like a simple step, but before you identify who you want to sell your product to, it is difficult to understand their needs. You'll want to consider the demographics, location, and common interests or needs of your target customers.
Perform Market Analysis Expanding into new markets involves a great deal of market research in addition to target customers. You'll want to develop an in-depth understanding of market growth rates, forecasted demand, competitors, and potential barriers to entry. This is particularly important if you are looking to enter a relatively undefined market.
Assess Internal Capabilities : Much of your decision on how to enter a new market (build, buy, or partner) is driven by an internal capabilities assessment. During this stage, you should ask yourself questions like: How much of our core competencies can we leverage? Do we have sales channels/infrastructure/relationships in place? What time-to-market considerations exist?
Prioritize and Select Markets: Once you've completed the market analysis and internal skills assessment, it is time to prioritize potential markets for expansion. Markets should be prioritized based on the strategic fit and your ability to serve them. Answer questions like: Are there gaps in this marketplace that we can fill (and do so better than our competitors)? What value do we deliver to this market and how much are they willing to pay for it?
Develop Market Entry Options: Once you've selected an attractive market, you'll want to determine the appropriate level of organic investment vs. expanding through a series of acquisitions (or some combination of the two). If you have complementary infrastructure or sales channels in place, you might want to consider an organic approach to growth. The key steps here are to develop the business plan, case for investment, and implementation work plan, including owners, timelines, tasks, and key milestones to enter.
If you are entering an entirely new market, with limited core assets to leverage, you should consider a joint venture/partnership or acquisition. These options require target identification, prioritization, due diligence, deal negotiation and close. Prior findings can be leveraged to identify the appropriate mix of market entry options that is linked to the business's core competencies, assets, and overall strategy.
Ideas are Easy, Implementation Is Hard
Sofocol start-up assistance is designed especially keeping in mind the first time investor who has a zeal to stand-out in the crowded texttile manufacturing industry and is bold enough not to tread the beaten path. texttile manufacturing is an attractive investment opportunity, but several factories get trapped in the vicious cycle of mediocrity even after having the right product mix and buyer linkage. Our industry experience has helped us realize that there are some most common mistakes that an investor makes while establishing and operating a garment factory. Our multiple successful projects and global exposure helps the investor avoid these mistakes, quickly move up the learning curve and establish an engineered garment factory.
Old ways won't open new doors
Sofocol helps the investors look upon products factories as engineering firms that are in business of assembling (fabric) parts to make a finished product viz. garment or made-ups. Sofocol engineered products factories are competitive, compliant and credible set-ups, established on 4 pillars, that can be relied upon every single time for quality, price and delivery commitments.
Excellent firms don't believe in excellence - only in constant improvement and constant change
Sofocol start-up and re-engineering services are modular in nature and could be scaled down into service modules that tune-up your product factory and give it the specific advantage needed. Our tailored modules are suitable for factories regardless of size, location or product.