The world has gone online. Any business that is serious about tapping into new markets must invest in tactics to capture and retain online visitors. However, an online presence is not enough. Businesses must look for ways to tap into other markets and expand their current customer base. There are over 150 million business domains online with hundreds of companies targeting similar verticals. Expansion entails being able to cut a larger section of the market against the competition. Here are some practical tactics that your business may want to use.
Mergers and acquisitions
Mergers and acquisitions are some of the fastest ways for a business to expand in the market. The acquisition process involves identifying promising companies in the industry and buying them out, to make them part of the enterprise. On the other hand, a merger involves coming together of two entities to form a single company.
It is important for businesses to do proper background research on firms that they seek to either merge with or acquire. Such firms should have a competency that is not available in the buying firm, a gateway to the new markets, a huge customer base, or a promising future. By June 2015, the Asia subcontinent had recorded about $96.1 billion in the value mergers and acquisitions. This shows how businesses are warming up to the idea.
Mergers and acquisition give your business an instant access to the market once held by the other firm, its competencies, technology, as well as the workforce. A good example of an acquisition is Blue Coat who recently acquired Elastica, an online security startup. The company was looking to bolster its cloud security product line with tools that are not infrastructure-centric in their protection.
Businesses target a particular market for their goods and services. The market may be defined by the use of the product, age, gender, geographical location, or customer psychographics such as preferences and values. However, your products may appeal to another group of clients that you may not be focused on. Likewise, the same products may be used for another need by the same customers hitherto unknown. In both ways, you could market the products to the new groups or for the new uses. If this is not possible, you may also develop a new line of products to appeal to a new market.
Samsung is one of the electronic giants that have diversified into many lines in the electronics world. Samsung is into smartphones tablets, televisions, kitchen appliances, military hardware, real estate business, and household appliances among many more. Each of the product lines appeals to a different set of clients.
Improve in marketing and increase the delivery channels
With a world population of over 7 billion people, there is no limit the size of the market that you can sell your products. There might be customers with similar characteristics and the buying power within the borders or in the international market that you may not have reached. The advent of e-commerce has brought several opportunities to expand beyond a certain geographic region or particular people.
You may consider collaborating up with a brand that has an imprint in the area. When Google launched Google Glass, it chose to partner with Luxottica. Luxottica is a reputable brand in the fashion industry, while Google is a leader in the tech industry. With the collaboration, Google was able to market Google Glass as fashionable, while Luxottica tapped into the techies for its fashion brand.
Many more brick and mortar businesses are opening e-commerce sites and tapping into the social media to gain more clients. Consumer goods companies are also giving incentives to distributors and retailers to encourage them to display their goods to the final clients.
The trick to expanding in the market is taking advantage of emerging opportunities and identifying other business through which the company can get easy access to the market. A large market means more profit, customer loyalty, and access to more business resources.