Six Areas of Service Business Development

I work with businesses that want to expand revenue by providing new offerings to the marketplace. To help them decide where to put their effort, I created the table below:

Current Markets

Emerging Markets

Heavy Competition

1

2

Light Competition

3

4

Open Field

5

6

The first column lists current markets they can enter. These are markets where money can be made today.

The second column lists opportunities that have not yet ripened, but are emerging. These represent business circumstances that are not yet producing sizable returns, but likely will in the near future.

The first row identifies those opportunities where competition is heavy. For current markets (1), this represents needs that are being satisfied today by well-positioned competitors.  For emerging markets (2), it indicates new opportunities that will likely be gobbled up by challengers who already have the advantage.

The second row identifies areas with light competition. There are other players but they do not have the edge.  For current markets (3), this means there are opportunities today that can be won if you have the right stuff.  For emerging markets (4), there is the possibility that you could succeed or even lead if you begin preparing today.

The third row represents an open field, a space where competition is so light as to be practically non-existent. For current markets (4), if you move now, you can secure a foothold and if you do well you will lead the space.  For emerging markets (5), there is a unique set of circumstances that you may dominate.

There are two important dimensions missing from this table: value to your customer and cost to you. First, focus on opportunities that inhabit 3, 4, 5, and 6 above. Then rate your options according to the value they produce for your customers and the expense you must incur to succeed. The higher the value and the lower the cost, the greater the opportunity they represent.

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2 Responses to “Six Areas of Service Business Development”

  1. Very valuable and simple . like the value to your customer and cost to you.I need to learn more – how? mike

  2. plz notify me of followup comments.

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