Big Confusion in Expansion: Product or Market?
Struggling with this Question – First what, Product Expansion or Market?
Let me share you few thoughts:
Among these two, it is very easy to select Product expansion since it requires “No Efforts” to find out new customer and scope of Business Expansion seems all time “High”.
Against the same, the Fact is that, Market Expansion requires lot of Pain like –
- Change in Behaviour/Response of Market and Mapping the demand of Market
- Starting from “0” with toughest Process “Sales”
- No Reference
As said, “NO PAIN, NO GAIN”, there are few benefits as well in Market Expansion:
- No need to do expenses Product Development and then Stock Management
- Higher the sales of Same Product / Services, Increase Profitability
- Fast Scope of Revenue Growth
In short, Parameters to be considered before taking such decisions are
- Cost of Expansion
- Nature of Organization and Belief of Top Management
- Return Vs. Investment in Money, Efforts & Time required
In most of the cases, Market Expansion, although tougher choice, seems to be most suitable since it is “Path of Growth”. Pick up the world’s well known brands and they have made their Brand based on Limited “Product / Services” only…
Choice is yours!
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