New Market Development Process 

Diversifying into new markets is one of the most difficult decisions a company has to make.  It is important that companies carry out a full due diligence when considering diversification. This section outlines one approach to assess the opportunities, investment and risks associated with development of new markets.

Market Diversification Route Map

Five steps to exploit new business opportunities

The route map shown opposite outlines five key steps or decision points for new market development

Step 1 – Obtain board approval to consider if market diversification is an option for business development. This will require assessment of the risks to current business sustainability

Step 2 – Identify your key exploitable assets or capability strengths that can be exploited in new markets. This will require an assessment of your current capabilities

Step 3 – Identify market opportunities and assess the potential risks

Step 4 – Prioritise potential opportunities by matching capabilities with opportunity requirements and upgrade skills and processes if necessary

Step 5 – Develop a business plan to develop the new market opportunities including investment requirements, people, plant and equipment.

Example of a self-assessment capability audit here

For further information contact John Bambrough john.bambrough@optimat.co.uk

Telephone 07974 915770