From MAGNET: Market Diversification

Each month we’ll be featuring a blog post from our friends at MAGNET (Manufacturing Advocacy & Growth Network). MAGNET’s mission is to support, educate and champion manufacturing in Ohio with the goal of transforming the region’s economy into a powerful, global player. You can visit MAGNET online at manufacturingsuccess.org. This post originally appeared on MAGNET’s  Manufacturing Success blog and is reposted with permission. Market Diversification: What Value Do You Bring? Part 1 By Ken Walker, Senior Business Consultant, MAGNET You’ve made “The Decision.” No, I’m not talking about LeBron leaving Cleveland—I’m talking about the decision to move your company’s products and services into a new market. Maybe it’s an allied market that uses the same type of products you produce.  Or maybe you’re selling the exact same product but to a different kind of customer, for example consumer instead of industrial. You’ve decided that, for the strategic growth of your company, you are willing to make the investment necessary. You’ve researched this new market’s key customers and key competitors.  Your organization is primed, ready and willing to conquer this new territory. However, before you go charging off, make sure the “new land” is receptive to your invading horde. In other words, in this new market, is anyone willing to buy what you are selling? Consider: Why Might Customers Choose to Change? When you decide to enter a new market, unless its an emerging technology market, it is very unlikely that you are the only supplier to the market. In most instances, existing suppliers will have been established for years. Even in markets where the barriers of entry are relatively low, it’s not easy to get customers to change without a compelling reason. Here are some important reasons why a customer might be willing to change or add to their supplier base:…read more >