Many small companies fail because they do not provide a good enough reason for a person to switch from their current supplier to the new product or service. If you’re struggling with tight competition and an undifferentiated proposition, then expanding into new markets may be the answer.
Expanding into new markets can help your business establish a presence in locations where there is a particular need for your product or service. This can help to reduce the effect of saturation and tough competition in your existing market.
If you’re looking to stay within your existing market, a move to a larger premises or additional locations may increase your production capacity and help you drive away your competitors.
Growth can also take the form of innovation. Investing in the redevelopment or enhancement of your offering can differentiate you from your competitors and increase your chances of continued success.
Growing your business helps to establish a stronger brand identity, further helping to stave off competition. Franchising, licensing your products and services or expanding into carefully chosen new product areas allows you to spread your brand. As the number of locations and products increases, your brand identity develops, and your revenue grows.