Developing a Geographic Market Expansion strategy is different from the average expansion or go-to-market strategy in that it requires a cohesive and comprehensive understanding of the global market and how your business may or may not operate in different regions or constituencies. If, for instance, you try to scale in competitive geographies, you need to have an amazing value proposition or a solution which nobody in the region you are looking to enter currently provides. You should also look to expand into regions where there is a high density of customers, go-to-market and operational synergies.
Geographic Market Expansion requires lengthy planning and in-depth research. According to research conducted by McKinsey, 4 out of 5 attempts to enter a new market fail. The reason for this is that, with limited resources, businesses often fail to get their product right before launching into new markets. With this being said, it’s vital that a business first focus on creating a solid value proposition and primary go-to-market strategy before using geographic expansion to scale.
Once it is decided that Geographic Market Expansion is the best path to drive continued growth for the business, an organization must take steps to plan a comprehensive go-to-market strategy on a global scale. This planning typically requires four steps:
- Target and Prioritize Potential Geographies
- Assess Regional Business Models
- Score and Prioritize Geographies
- Develop Geographic Expansion Plan
Once these steps have been completed, a business or organization will be well on its way to developing a cohesive Geographic Market Expansion plan.