How To Develop A Geographic Expansion Strategy

How To Develop A Geographic Expansion Strategy

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Topic
Buzz
Cost
High
Difficulty
Hard
Result
Brand Exposure
Cost Details
$5,000-$20,000

What Is Geographic Expansion?

Geographic expansion is a market strategy where an enterprise grows by expanding from its original location to additional geographic regions.

Geographic expansion is one of the preferred business growth strategies.

According to Frost & Sullivan, geographic expansion can help enterprises gain access to new markets and talent pools.

Geographic Expansion Key Takeaways

  • Geographical expansion means a wider customer base and an opportunity to make more impact
  • If your products or services is a success, you could enjoy increased revenues from the new customers
  • Geographical expansion presents an array of risks and opportunities for your business.

Understanding How Geographical Expansion Works

Entering a new geographical market involves expanding a firm's business to new regions.

When expanding geographically, the business manager is confronted with the task of managing an existing business and the start-up at the same time.

Before venturing into new geographical regions, research the opportunities, the risks, and the overall costs involved.

Real-World Examples of Successful Geographical Expansion

1. Walmart

Walmart, is one of the best examples of a brand that has expanded globally.

Walmart opened its first store in Rogers Arkansas in 1962, and crossed the borders in 1991, opening the first international store in Mexico.

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Today, Walmart is a multinational company that has developed into the largest retailer globally. The Walmart example is

2. KFC

KFC is another great example of a brand that has successfully expanded its product geographically.

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KFC opened the first shop in Salt Lake City, Utah, in 1952.

Years later, KFC became the first fast-food chain to expand internationally and opened outlets in Britain, Mexico, and Jamaica in the 1960s.

How to Expand Globally

  • Target research and high-level prioritization to whittle down all potential geographies to expand into

  • Conduct a business model research assessing the competitiveness of your value proposition and go to market strategy

  • Utilize a decision matrix and an insightful fact base to decide on the expansion geographies

  • Create robust plans to enter, grow, and ultimately win in the expansion geographies.

  • Evaluate if you have the funds and customer base needed

Contributors

Contributors to this article:

Pat Walls,  Founder of Starter Story

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