Entrepreneurs tend be very competitive people. They plow through obstacles just like they plow through competitors with a single-minded focus on winning. The Founder of a promising e-Commerce startup explained, “I’m hard-wired to compete.” The CEO of a struggling tech startup revealed, “I JUST HATE TO LOSE!”
Just as every living organism has a DNA that determines its characteristics and growth, every business has a code of requirements and methods for achieving revenue, profitability and growth. A business DNA should focus on customers, who are the lifeblood of every successful business. The result is higher levels of success and profitability even in the most competitive markets.
Before about 2010, companies could spend their way to success in consumer and business-to-business markets. There was a direct correlation between marketing dollars spent to company’s sales and ultimately their share of market. Brands that outspent their competitors in advertising and promotion tended to be #1 and #2 in most industries.
The decision to expand geographically is not one taken lightly by any company. When thinking about entering the USA market companies should make this decision with a great deal of research and pre-work. To our surprise, the majority do not. Companies that are successful in their local foreign markets believe that similar buying behaviors exist with US customers.
You wouldn’t take a road trip without a map, so why try to navigate your business in the USA without a detailed Market Map? Market Maps can help guide you through the competitive landscape and to better understand consumer demands and market dynamics. And Market Maps can help you locate opportunities and avoid problem area for penetrating & expanding in the USA.
“The #1 company-killer is lack of market,” reports Marc Andreessen, one of Silicon Valley’s most successful venture capitalist. Andreessen believes that companies, particularly early-stage technology companies, need to identify a substantial market and to deliver a product that can satisfy that market. This is particularly true —yet difficult to achieve — for foreign-based companies attempting USA expansion.
It’s hard for USA companies to be successful in the USA market. It’s even harder for companies based in Europe, Asia, and other continents to achieve sustainable profits in the USA. Competition is fierce, costs are expensive, and consumers are uncompromising in their demands for technology products and services.
Tactical innovators assess their environment through the lens of a Market Map and listen to needs through the voice of the customer, enabling a proactive response to any market change. I would argue that for every type of business, there are at least two paths to growth: (1) compete more effectively within existing segments or (2) identify new, high value segments where you can be successful.