What is market expansion and why do companies expand into new markets?

Posted by Humane Design on July 23rd, 2022

Businesses can now expand overseas faster than ever before. However, many companies underestimate how difficult it is to enter a new market. Some work will have to be done to fix this as each country has its own peculiarities and challenges.

Here's everything you need to know to build a better market expansion strategy, broken down into a few key terms.

What is market expansion and why do companies expand into new markets?
Market expansion is a growth strategy where you introduce your existing product/service to a new market. This "new market" is generally outside the current geographic areas in which you currently operate.

Depending on your business, you may have several goals that you want to achieve with your market expansion growth strategy. Many people think that the only reason companies expand into new markets is to gain more market share and increase sales. While this is often true, there are many benefits beyond development:

Capture market share
Expand sales presence
Diversification of investments
Ability to attract top talent
Cost Reduction
Mergers and acquisition
Add employees to a customer or client in the country