The factors that have led to success in a particular city, region, or country may be quite different than those in the new geography.
Further, expansion of any sort takes resources. Attempting aggressive geographic growth without adequate funding and a good plan is an almost guaranteed recipe for failure.
If you are considering a geographic expansion for your business, you will need to carefully assess a wide range of questions, including:
• How do the competitive dynamics in your new market compare to your current one?
• How will the expansion be managed?
• Are there supply chain or quality-control challenges that could surface with the new geography that
are not present in your current market?
• Is the customer base different in the new geography?
• What will the management and ownership structure look like? Is franchising a way to go?
• If you are considering an international expansion, a whole additional set of issues comes into play including taxation, regulation, cultural and legal differences, etc. Are you prepared to address these issues?
Sample Solution