Market Adjacencies – Understanding Needs
Expansion into adjacent markets is a proven growth strategy for technically strong businesses. Target markets need to be sufficiently attractive in general, not involve excessive ‘stretch’, and plausibly involve needs where existing core capabilities of an organization can deliver solutions.
The challenge here, particularly for mid-sized to small organizations whose staffs are focused on operations, is to find these opportunities.
Market research by SSCI personnel can systematically search for those opportunities (a particularly useful tool for this is the Opportunity Genesis™ framework from Product Genesis (PG). This systematic approach encompasses:
- In-depth assessment of client technical capabilities—something requires personnel with sufficient technical competence to understand your capabilities.
- Prioritization (in discussion with you) of goals and needs for growth.
- Systematic, divergent market research to identify attractive candidate markets or product opportunities.
- Structured, convergent screening and down-selection (using mutually developed criteria) of the opportunities most attractive to the client.
- In-depth market research, including thought-leader and other open-ended interviewing, to score candidate opportunities against pre-agreed criteria.