By Kevin Closson, M.S., MBA, Nerac Analyst
Originally Published: December 2nd, 2014
It’s one of the most tantalizing of growth strategies. Adjacent markets.
On paper, there is a lot to like about entering adjacent markets. They leverage existing technology, supply chains, customers or all three. They’re perceived as low risk. They don’t cannibalize existing sales. And internal models often show them resulting in increased sales and profits.
Anyone who’s ever tried to enter an adjacent space knows this isn’t the full picture, though. Successfully executing the strategy involves getting several key things right. You must sell the business case internally. To do that, you have to have researched the adjacent space thoroughly. You must be extremely disciplined, both in decision making and execution. Finally, you have to be patient.