Strategy Bits-Part 4: Your market is shrinking; Can you find a new market for your product/service?
Strategy Bits – Part 4
By Denise A. Harrison
We are posting a series of blog articles with tips for your strategic planning. This is the final one. These tips are taken from the article Strategy Tips first published in Compass Points in June 2004.
Your market is shrinking; can you find a new market for your product/service?
International Visual Corporation manufactures and sells modular wall display panels to department stores. Department store consolidation started a decade ago and continues with no end in sight and this consolidation reduced International Visual’s client base significantly. The two partners who own the company were driving around wracking their brains for new ways to grow the company. One day (while driving) they came upon the idea of selling this paneling to homeowners for their garages so that they could attach cabinets, shelves and other units to organize garage storage. A success!! The home building market is going strong and the company has a significant new market segment using the products that they already knew how to produce. (WSJ, 5/27/03)
Strategy Tip: Selling an existing product/service to a new market — be creative! If this new market is viable be sure that your team analyzes the distribution required and analyzes if there are any market requirements that would not be met by the existing product. Sometimes minor modifications are necessary to prevent a black eye when the product is launched into this new market.
If you are interested in taking your strategic planning to the next level, please listen to our webinar: Why Isn’t My Strategic Plan Working or contact Denise Harrison; 910-763-5194, firstname.lastname@example.org .
Denise Harrison is a senior consultant for the Center for Simplified Strategic Planning, Inc. She can be reached at email@example.com.
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