The global trading relationship has become much more in-depth and faster as a result of globalization, which has contributed to the exchange of technology and information. Some people say that there are no new markets left to develop. I am afraid I have to disagree with this statement because businesses that are creative and well informed of client needs will be able to discover many new products. A good example is mobile applications, where many vital digital innovations are now entering the market and generating sales from smart ideas and modern technologies (Sorger, 2012). Therefore, there is a lot of consumer growth that is all about discovering and creating innovative products which can create a niche consumer market.
By modifying the organization’s process in delivering its goods and services to clients, the business may create new market opportunities. It may also identify market segments which are not yet penetrated by rivals and explicitly develop products or services for these markets. For instance, Uber company decided to look at how they could make the process simpler for their consumers instead of upgrading by purchasing hybrid cars with a sophisticated mechanism. They created a tech-friendly approach which offered costs by reliably tracking the distance traveled and educated their drivers to a high standard level of service (Sorger, 2012). Thus, they have built an entirely new market by looking at the issues at hand and business opportunities from another perspective and have challenged an established industry that has seen no innovation for a long time.
There are three methods which companies can use in identifying potential business opportunities: new market segments, go-to-market approach, and differentiating functionality. In the first type of approach, the company applies competitive information in targeting new market areas which other competitors are currently pursuing. The market niche may be a geographical region or a particular demographic and geographic segment. Second, Go-to-Market Approach: In the go-to-market approach, an organization offers its goods and services to its customers. By using this strategy to build new business opportunities, the firm is creating a different way of achieving its goals and objectives. The company’s goods or services may be identical to those provided by other competitors, except that it will just change the way it provides them to its clients (Sorger, 2012). A very good example is the Green Mountain Coffee Roasters. In an extremely competitive, long-established market, Green Mountain created a new business source by purchasing an innovative start-up known as Keurig, which manufactured appliances that brewed single servings using a lock and key process of specialized coffee containers. Both office customers and home consumers have since adopted the Keurig model for its flexibility and minimal upfront expenses.
The third approach, differentiating functionality, is identifying new business opportunities in developing services and goods with distinguishing features. The new functionality is designed to attract a new category of users. Putting the focus on the company’s consumers is a strong start on efficient product differentiation. Knowing what the clients want, what delights or frustrates them, and above all, what will make them comfortable, is the key to success. The solutions to these problems will give rise to ideas for differentiation. Other distinguishing features include cost, branding, quality, efficient customer service, and customer satisfaction when purchasing or using the product (Sorger, 2012). For instance, a cosmetics company may develop an online tool that helps clients find the correct foundation shade. A manufacturer of tennis shoes can offer buyers the option to customize their shoes by selecting each item’s color. Clients are more likely to pay for things that come with a unique and valuable experience, provided that the service being offered is able to make the customers feel comfortable and satisfied.
Reference
Sorger, S. (2012). Marketing planning. Pearson.