They found that the companies with the most sustained profitable growth had used a systematic, disciplined approach to expand the boundaries of their core business into an adjacent space.
Some companies expanded from one geographic market to another, while others applied an existing business model to adjacent segments.
The market for personal computers includes homes, schools, businesses, and government organisations.
It’s your plan – and every plan is different – so you need to know as much as you can about your target market.
The market you need to look at is your potential market, not the actual market served, the one that’s limited to your existing customers.
Your target market is much wider than just the people you already reach.
Take Procter & Gamble’s Crest toothpaste brand as an example.
In the late 1990s, Crest was floundering, but Procter & Gamble revitalized the brand by moving into two other categories — teeth whitening and brushing — with the introduction of Crest Whitestrips and Spin Brush.
Chasing too many growth initiatives can be dangerous for your business. However, assessing your customers and competitors is not enough.
According to the Harvard Business Review, "As an executive team's priority list grows, the company's revenue in fact declines relative to its peers." Use market research to analyze your customers and competitors on multiple levels. You also need to obtain a broader understanding of the market as a whole and what the potential of success is in the market.