Market Expansion Strategy

Market expansion is an inevitable part of business. Oftentimes it is sought out by companies who have well-established market-expansion strategies in place as part of their overall strategy. But sometimes, companies are forced to make decisions about expansion into new markets due to unexpected circumstances, such as a competitor suddenly going out of business. When such an opportunity arises, companies have frequently made the mistake of basing their decision-making solely on external factors such as risk, competitive advantage, and market attractiveness. In doing so, they fail to assess the internal factors that are essential to the successful implementation of a market expansion strategy.

The main internal factors that are key drivers for successful implementation of a market expansion strategy are the organizational structure, management systems, and corporate culture. Organizational structure provides the framework within which an organization operates and includes the various activities and processes used by an organization to achieve its objectives. Larger companies tend to have more formalized standard operating procedures in place than those of smaller companies. A company’s size, employee hierarchy, distribution networks, and use of technology are all parts of the overall organizational structure. Management systems involve management’s leadership style, their attitudes towards action, and support of core values that really set the tone for the organization. According to the article, leadership vision guides the direction of an organization and is one of the most influential factors in determining a company’s success. Management’s drive for action can determine how well a company acts in decision-making situations. And the promotion of a core set of basic beliefs guides employees to behave in a way that aligns with the overall company strategy. Corporate culture is the learned set of values, expectations and behavioral norms that are shared by...