Why is it important for companies to expand fast?
Here is one dilemma, should you anchor your sales in your local market and make it your stronghold or should you try to expand as fast as possible to conquer as many markets as possible?
Although the right answer might differ from one company to the next, the reality is that it is probably somewhere in between, but certainly leaning towards going fast.
How to expand fast?
The idea here is of course not to be reckless and blindly expand in countries where there is simply no market for your product, snowblower in Dubai anyone? or to turn a blind eye on your business ethics to win over a market or to make agreements too fast that will hurt your business in the long run.
That is of course the basics, but the idea is to methodologically and strategically enter new markets at a rapid pace. Get the right funding, surround yourself with the right team and explore the opportunities out there as soon as possible.
That brings us back to the original question: why is it important to expand fast?
First of all, because the world itself goes fast. The times when creating a product in one country would not be known on the other side of the world before years is long gone. The multiple platforms and medias allow for a rapid sharing of information and your product will not escape this reality.
As a result, if your idea is great, if your product is great, there is someone out there that will try to copy it and reap the rewards of your hard work. If you are not in that market first, taking it all or a significant share early it will open up the door for competition to settle in. First mover advantage.
Being first will allow your brand to set the standard, but there will surely be copycats trying to undercut you, offer a similar product at a (lot) cheaper price. Setting the standard allows you to bring your product and your brand more favourably and will help your company get better margins. Everyone trying to take your place will have to prove that they are better than the original. It is better to have that burden on them than on you.
There are multiple examples of innovations getting destroyed in the market from copycats producing and distributing their version of a product much faster in new markets than the original company, making it harder for the original company to enter these markets at a higher price. Retailers and distributor will find your product online and if the internet is flooded with much cheaper look-a-likes, why would they pay premium price with you if you are not the standard?
It is clear that you have to go fast, but how fast and what’s the right time? We have a team of experts with years of experience in the industry that can help you answers these questions for your business.
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