The subject of entering a new market or client segment has come up in many recent discussions with both new and experienced company owners. A method for reducing the danger of entrance was a major issue in each case.
While everyone understood that there is always some danger, they wanted to see what they might do to reduce it.
We spoke about how important it is to have clarity based on facts about consumer requirements and desires, as well as the level of competition.
We also spoke about how important it is to do market research, estimate the cost of entry, define and create a unique and compelling value proposition, and design a go-to-market strategy and plan.
Risk management requires a well-thought-out strategy. Multiple strategies must frequently be considered and evaluated.
You may enhance your chances of success, save money, and accelerate your time to market by using insights and the correct approach.
The Ecosystem of the Market Is a Good Place to Begin
The question we’re most often asked is, “Where is a good starting point for developing a new market entry strategy?” “What do you know about the ecosystem of the market you want to enter?” we always ask as a counter-question.
There is an ecology in every market.
So that we’re all on the same page, let’s define what an ecosystem is.
An ecosystem, according to the definition, is “a community that works together with its environment and functions as a unit.” This term may be used to the business world.
A business ecosystem, on the other hand, is defined as a network of autonomous businesses or members that work together to form a market community.
According to this definition, the market consists of buyer, seller, influencer, channel, and supplier participants. Customers of different kinds would be buyer members.
You and all of your direct and indirect rivals would be considered seller members. Influencers include analysts, representatives of the media, trade organizations, and others.
Supplier members are companies that supply goods to you, your rivals, and your consumers. Channels are those that make it easier for the vendor to convey his or her offer to the customer.
You can discover market entrance possibilities by mapping all ecosystem participants and how they interact with one another.
A channel approach, for example, is becoming or establishing an affiliate program. An ecosystem map would aid in the identification of prospective affiliates, or individuals who are linked to buying members and would find it advantageous to sell a company’s product to their customers.
Ecosystem maps may also aid in the identification of prospective niches or partners with access to such niches. It’s a useful tool since it reveals who is and isn’t linked to whom.
You can identify which markets/buyers are linked to which rivals, influencers, and each other using an ecosystem map. The map may be used to categorize buyer members into first, second, and third tier markets, as well as identify market clusters.
It also shows you how to develop a more focused influencer or peer engagement approach. You may identify where you can get an advantage over weaker rivals.
If you’re attempting to break into a new market or consumer group, we recommend drawing up an ecosystem map to assist you navigate and discover growth possibilities. It aids in risk reduction.
The difficulties, like with any model or map, are typically in creating the framework and obtaining the data.