Diversification and growth are goals of most manufacturers, no matter how big or small, or how successful they are. The question is not whether you want to grow and diversify, but how to do it.
In working with dozens of manufacturers over the past several years, we’ve found it useful to think about growth and diversification using the two-by-two matrix shown here, where growth and diversification can be broken down into four categories:
- Sell more of your existing products/services to your existing customers
- Determine your existing customers’ needs or the needs of the market as a whole and provide them with new products/services
- Use your existing products/services to identify new markets and customers
- Develop new products to sell to a new market and new customers
What do all of these options have in common? In each case, you need to identify a need in the marketplace. However, simply identifying a need is not enough. At Ady Advantage, we help you identify unmet needs and then provide the data and rigorous analysis required for you to make the best business decision about which to go after – and how. As the research guru here at Ady Advantage, this is my favorite part.
Recently, we have worked with clients experiencing declining sales due to downturns in their end-user markets, especially agriculture and defense. If you have all of your eggs in one basket, these industry downturns can have extremely detrimental effects on your company. By not diversifying, you’re putting your company’s success – and survival – at risk.
Ady Advantage can not only help analyze opportunities in your current end-user markets, but can identify potential opportunities in end-user markets that you may have little to no experience in. We can help you identify a new market that would be a great fit for your company that you would otherwise be unaware of.
In the past year, we have researched and analyzed over 15 end-user markets on various factors such as size, past growth, projected future growth, concentration ratio of large players in the market, and key trends and drivers in the industry. Using a variety of analyses, we can determine the size of the market opportunity within each end-user market.
The following is a list of end-user markets for which we have collected data over the past year:
- Agriculture and Agricultural Machinery
- Conveyor and Conveying Equipment
- Electronic Components
- Food Processing (over 20 specific subsectors)
- Machine Shops
- Material Handling Equipment
- Oil and Gas
What plans does your company have in place to protect against an unexpected downturn in a critical customer market segment? With the uncertainty in today’s economy, not having a plan for diversification puts your company at risk. Ady Advantage can help you plan for success by identifying potential new markets and using that data to create a strategic plan that will help your company diversify and grow. We can also help you implement those plans by creating customized strategic marketing and branding services designed to help you achieve your goals. Learn more about our market research and marketing and branding services for manufacturers on our website, or contact Janet Ady (608-663-9218) to discuss how we can help your company diversify and grow.