Introduction
Any business aims to optimize its operations and increase profits through its products and services. Two furniture retail shops owned by John and Deborah mainly depend on online catalog sales. The company is renowned for its outstanding customer service and excellent quality, and it has ten manufacturing facilities and distribution hubs around the country. The company’s contemporary designs cater to a younger market, and its customer base is predominantly upper-middle class.
However, home renovations have slowed down significantly due to a recent decline in the housing market. Therefore, the company is considering expanding its business into new markets. Still, when the company wants to enter new markets, there are many considerations for the owners, such as the risks and benefits, consumer preferences, and the ability to sustain growth and revenue in new locations.
Considerations for New Market Initiative
Expanding internationally can be a task filled with risks, and it is necessary to analyze the processes and locations for expansion first. John and Deborah need to consider several factors to remain competitive in the global marketplace. Firstly, it is essential to identify the target market and conduct thorough research on market trends, culture, and consumer behavior (Liu & Forrest, 2021). In existing U.S. markets, the company relies on the upper-middle-class customer segment. Therefore, researching the required information and identifying the target consumer groups can help them tailor their products and services to meet the needs of the local population better.
Secondly, it is crucial to evaluate the competition in the global marketplace and to analyze how their products and services will fit into the existing market. This can help them identify any potential challenges or opportunities that may arise (Liu & Forrest, 2021). When the location has many monopolists, it can be challenging to compete. Thirdly, it is essential to determine the legal and regulatory requirements of the new markets (Liu & Forrest, 2021). This can include anything from tax laws to labor regulations and can significantly impact the feasibility of an expansion.
Lastly, John and Deborah need to develop a feasible international business plan that takes into account the company’s strengths and weaknesses, financial capabilities, and potential risks. This plan should outline the steps they need to take to successfully enter the global marketplace, including marketing strategies, supply chain management, and logistics (Liu & Forrest, 2021). By carefully considering these factors, John and Deborah can increase their chances of success and achieve their goals of expanding to other markets.
Competing in New Markets
In order to compete in the new market, John and Deborah must do more than just differentiate their products from competitors. While highlighting its unique selling proposition is important, it is also essential to create a strong, lasting impression on its customer base (Corbetta & Morosetti, 2020). By leveraging their superior quality, exceptional customer service, and consistent involvement with local communities, they can create green gardens that will be both eco-friendly and sustainable. In other words, the owners of the businesses must focus on their competitive advantage, such as being socially responsible citizens and providing unique customer service.
Another way it could differentiate itself from its competitors is by adjusting its pricing strategy to align with the target market’s affordability while maintaining its premium quality. While focusing on more upper-middle-class customers, providing products and services in lower-priced segments can be vital to attracting more customers. This would allow them to appeal to a broader range of customers while maintaining the quality that sets them apart from their competitors. Finally, they could offer product customization options to cater to the local market’s preferences. This would allow them to create a unique product tailored specifically to their customer base’s needs and wants (Corbetta & Morosetti, 2020). By doing so, they can create a strong, loyal customer base that will continue to choose their products over their competitors.
Evaluating the Global Marketplace
Finally, while it is necessary to focus on one’s own unique features and competitive edge, it is additionally vital to have insights into global marketplace trends. To evaluate the future of the global marketplace, John and Deborah could conduct an in-depth analysis of various factors that may impact their business. One of the most important aspects to consider is market trends. By analyzing market trends, companies can determine what products or services are in demand and what consumers are looking for (Glowik, 2020). They could additionally study consumer behavior, which would help them understand how customers make purchasing decisions and what factors influence their choices (Glowik, 2020).
In order to gather data and insights about the target market’s needs and preferences, John and Deborah could use market research tools such as surveys, interviews, and focus groups. These tools would allow them to collect valuable information about customer preferences, pain points, and buying habits. By analyzing this data, they can identify opportunities for growth and make informed decisions about their business strategy. Moreover, customers will feel heard and remain loyal to the brand that caters to their needs.
Another key factor to consider is competition since it can be present both domestically and overseas. John and Deborah could conduct a competitive analysis to identify their competitors’ strengths and weaknesses, as well as their own. This would help them identify areas where they can improve and areas where they have a competitive advantage. Furthermore, it is important for John and Deborah to control the legal and regulatory changes in the countries in which they plan to expand. By staying up-to-date with these changes, they can ensure that their business practices comply with laws and regulations (Glowik, 2020).
In addition to these factors, John and Deborah should monitor the financial performance of their international business. They should track revenue, expenses, and profitability to ensure that they are on track to meet their business goals. If necessary, they can adjust their strategies accordingly to improve financial performance and achieve success in the global marketplace.
Conclusion
Hence, the risks and rewards, customer preferences, and the capacity to maintain growth and revenue in new areas are a few factors owners must consider when the firm wishes to enter new markets. Expanding a business requires careful planning and consideration of various factors to remain competitive. John and Deborah need to identify the target market, evaluate the competition, determine the legal and regulatory requirements, and develop a feasible international business plan. To compete in the new market, they need to differentiate their products, adjust their pricing strategy, and offer product customization options. Lastly, they need to evaluate the global marketplace by analyzing market trends, consumer behavior, and the competition. By doing so, John and Deborah can successfully expand their retail furniture business and maintain their reputation for exceptional quality and customer service.
References
Corbetta, G., & Morosetti, P. (2020). Corporate strategy for a sustainable growth: Alignment, execution, and transformation. Egea.
Glowik, M. (2020). Market entry strategies: Internationalization theories, concepts and cases. De Gruyter.
Liu, Y., & Forrest, J. Y. (2021). Value in business: A holistic, systems-based approach to creating and achieving value. Springer International Publishing.
