Market expansion: the guide
Growing into a space close to what the company already does (a new segment, channel, or nearby region) and testing whether the unit economics pass.
Facts checked against sources onWhat strong candidates can do
- Judge an expansion on attractiveness, ability to win, and unit economics
- Test one new unit against the company's hurdle
- Work out what would have to change when the economics fail
Common questions
What is a market expansion case?
Growing into a space close to what the company already does (a new segment, channel, or nearby region) and testing whether the unit economics pass.
How do you approach a market expansion case?
Define the new segment, channel or region, size it, test whether the company's strengths carry over, and check the economics against the cost of expanding.
What is the most common mistake in a market expansion case?
Assuming a bigger market is always better, without checking whether the company can win there.
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