strategies for entering new markets
Posted: Tue Jan 28, 2025 4:19 am
There are two ways of acting in the world to conquer new markets and introduce their own products to them. These are the innovative strategy and the follower strategy. Both have their own characteristics, advantages and disadvantages, and each can show different efficiency depending on the conditions of application.
Brief description of strategies
Innovator strategy. In English - pioneer strategy. With this approach, you come up with something completely new (a product, a product group, individual solutions) in order to declare yourself in a new market. This is a rather risky course of action, because it is impossible to know in advance what kind of demand the market will respond to the new product with. But if the product finds its buyer, then sales will bring excellent profits, because no one except you offers anything like this here.
Late arrivals strategy. Here malta email list you do not invent anything yourself, but only copy someone else's product, technology, idea, etc. The paths to new market segments have already been paved by the innovator, and all you have to do is not repeat his mistakes and present the product to customers in the most advantageous form.
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Pros and cons of each strategy
An innovator has to spend more effort and resources to develop new markets, generate ideas (to create a product), launch advertising, accustom the consumer to the product, teach how to use it, and develop a culture of consumption. All these are elements of promotion that require considerable expenses.
The follower follows the beaten path of the innovator, using ready-made ideas, technologies and solutions. The follower has the opportunity to make improvements to the product and stand out from the competition. Or set a lower price, choose better distribution routes and, thanks to this, also be ahead of others. But practice shows that when entering a new market, a large share of it goes to those who were first.
It is harder for an innovator to take his first steps, but this is also his advantage. While there are no competitors, he already begins to work, gains knowledge, experience, earns popularity and loyalty.
Pros and Cons of Conquering New Markets
Having taken a leadership position, the innovator generates new ideas, strengthens the entry threshold into the chosen niche, and takes measures to protect the copyright to his inventions.
If the market chosen for development is growing and attracting new participants, then be sure to be prepared for tough competition. Competitors will dump, introduce attractive new products, as well as copies of your goods. All this must be foreseen and marketing measures to combat such manifestations and maintain your positions must be planned in advance.
When entering new markets, innovators tend to advance more successfully than followers. There are two reasons for this. First, if the product completely satisfies the consumer, he will most often not take a risk and switch to something else. Therefore, followers often find it extremely difficult to attract attention. Second, if the innovator reinforces the launch of his product with a competent advertising campaign, then in the eyes of the consumer he (the innovator) becomes a kind of standard and begins to dictate conditions to newly emerging market participants.
Brief description of strategies
Innovator strategy. In English - pioneer strategy. With this approach, you come up with something completely new (a product, a product group, individual solutions) in order to declare yourself in a new market. This is a rather risky course of action, because it is impossible to know in advance what kind of demand the market will respond to the new product with. But if the product finds its buyer, then sales will bring excellent profits, because no one except you offers anything like this here.
Late arrivals strategy. Here malta email list you do not invent anything yourself, but only copy someone else's product, technology, idea, etc. The paths to new market segments have already been paved by the innovator, and all you have to do is not repeat his mistakes and present the product to customers in the most advantageous form.
Read also!
"USP examples to help you come up with your own that's even better"
Read more
Pros and cons of each strategy
An innovator has to spend more effort and resources to develop new markets, generate ideas (to create a product), launch advertising, accustom the consumer to the product, teach how to use it, and develop a culture of consumption. All these are elements of promotion that require considerable expenses.
The follower follows the beaten path of the innovator, using ready-made ideas, technologies and solutions. The follower has the opportunity to make improvements to the product and stand out from the competition. Or set a lower price, choose better distribution routes and, thanks to this, also be ahead of others. But practice shows that when entering a new market, a large share of it goes to those who were first.
It is harder for an innovator to take his first steps, but this is also his advantage. While there are no competitors, he already begins to work, gains knowledge, experience, earns popularity and loyalty.
Pros and Cons of Conquering New Markets
Having taken a leadership position, the innovator generates new ideas, strengthens the entry threshold into the chosen niche, and takes measures to protect the copyright to his inventions.
If the market chosen for development is growing and attracting new participants, then be sure to be prepared for tough competition. Competitors will dump, introduce attractive new products, as well as copies of your goods. All this must be foreseen and marketing measures to combat such manifestations and maintain your positions must be planned in advance.
When entering new markets, innovators tend to advance more successfully than followers. There are two reasons for this. First, if the product completely satisfies the consumer, he will most often not take a risk and switch to something else. Therefore, followers often find it extremely difficult to attract attention. Second, if the innovator reinforces the launch of his product with a competent advertising campaign, then in the eyes of the consumer he (the innovator) becomes a kind of standard and begins to dictate conditions to newly emerging market participants.