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Vertical Market Expansion

VME_video_thumb.jpgOne path an organization might take to increase revenue is to expand vertically (i.e.,taking an existing product or service into a new market with an untapped customer base).

Often, a vertical extension can be justified by stagnation within the company’s current market, flat-lining market share, or by the need to keep pace with competitors that are aggressively pursuing new opportunities of their own. Ultimately, successful companies consistently look beyond their current markets for new growth opportunities.  Vertical markets are a compelling path to those desired, and always elusive, new wells of revenue. 

Vertical Market Expansion Issues and Challenges

Vertical market entry is often more difficult than it first appears.  A recent study reported that for every successful vertical market expansion entry, four fail

Detailed, careful assessment of the genuine potential and risk associated with vertical market expansion needs to be conducted. Often,key issues such as competitor or distributor responses, as well as target customers’ inertia, tend to be underestimated. Vertical market expansion often implies a change in a competitive status quo, the implications of which must be carefully gauged.

Our Value Proposition

Frost & Sullivan consultants combine unique market insights with a clear understanding of clients’ internal resources, capabilities, and core competencies.  Years of experience supporting clients’ market entry decisions has taught us that the better the assessment of market size, competitors, market share, revenue, costs, and other factors, the better the odds of making good vertical market expansion decisions.  Our end-to-end approach to vertical market expansion is therefore designed to help you:

  • Evaluate your existing markets’ future growth potential
  • Identify promising growth opportunities across potential verticals
  • Announce new market entry decisions to key stakeholders and customers
  • Build demand through targeted marketing communications and promotions

Our Consulting Approach

Frost & Sullivan’s start-to-finish approach to Vertical Market Expansion can help you:

  • Conduct a realistic assessment of the current market’s size, growth potential, and saturation
  • Identify changes to the customer and competitor landscape that could alter the appeal of your current market(s)
  • Conduct a parallel assessment of a vertical market’s potential, customer base, and competitive landscape
  • Plan, announce, and execute entry into a new market (garnering support from internal and external stakeholders)

The Growth Processes