Market competitive dynamics

However, to say that this type of move is “straightforward” is not to say it is easy. The factors that have led to success in a particular city, region, or country may be quite different than those in the new geography. Further, expansion of any sort takes resources. Attempting aggressive geographic growth without adequate funding and a good plan is an almost guaranteed recipe for failure. If you are considering a geographic expansion for your business, you will need to carefully assess a wide range of questions, including: • How do the competitive dynamics in your new market compare to your current one? • How will the expansion be managed? • Are there supply chain or quality-control challenges that could surface with the new geography that are not present in your current market? • Is the customer base different in the new geography? • What will the management and ownership structure look like? Is franchising a way to go? • If you are considering an international expansion, a whole additional set of issues comes into play including taxation, regulation, cultural and legal differences, etc. Are you prepared to address these issues?