Getting Fit to Enter a New Market
“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.
“To be successful here in the USA, you need to thoroughly research and analyze the market to identify, create, and validate your company’s product-market fit,” says Christophe Garnier, Managing Director of Spark Labs NYC coworking space.
While creating product-market fit is difficult and risky, it is absolutely possible with the help of local market development experts. These experts can provide the market intelligence to understand the competitive, customer, and distribution channel landscape. This market intelligence is essential to identify optimal target customers and best value propositions for your products and services. Then, before undergoing an expensive launch campaign, local market experts can test your Go-to-Market and product strategy to improve your chance for success.
For example, Rocket Market Development worked with a foreign-based technology company that wanted to expand their presence in the USA. The company had a technology platform for delivering multi-media, digital advertisements. The USA digital advertising market is $60 billion huge, but highly competitive and fragmented.
We investigated competitors, interviewed potential customers, and talked with industry experts. We also talked with the company’s product developers and business executives to determine which product features could be highly valued by each market segment. Through this discovery, we identified a market niche – in this case healthcare and pharmaceutical companies – that required flawless delivery of legal and safety information within digital advertisements. This insight became the cornerstone for an effective Go-to-Market strategy for execution that gained an inroad for the company into the crowded market.
So to get fit — or more specifically, product-market fit — for USA expansion, foreign-based companies should get local market development expertise to understand the complicated USA market and to determine optimal Go-to-Market strategy. The investment in market intelligence is well worth the time and effort to minimize your risk and improve your chance for success.