...companies looking at products, markets, strategies to compete
For years, small and mid-sized manufacturers did not face the challenge of selling. Business from multi-nationals was steady. Credit markets were open. Consumer spending was strong. The worldwide economy insulated many U.S. companies from severe fluctuations in sales and revenue.
Today, foreign price competition and volatile business conditions have companies of all types re-examining their current business models. Manufacturers who once stood apart simply by being more efficient are now scrambling to fill their sales pipelines, develop new products and services, and pursue customers in entirely new markets. Differentiating from the competition, moving up the value chain, and collaborating with customers is the new recipe for success.
Unfortunately, it often takes a crisis to prompt action. At IMEC, we’ve seen a noticeable increase in inquiries from manufacturers looking to begin their diversification journeys. Further, our conversations with attendees at two Wind Power Supply Chain conferences were indications that manufacturers are hungry to find work in any growing sector.
That many small and mid-sized manufacturers may finally be ready to tackle the challenge of developing a marketing and sales organization is a welcome sign. Diversification involves three principal actions:
1. Bringing new products and services to markets currently served
2. Taking current products and services to new markets
3. Pursuing new markets with newly developed products and services
While each diversification strategy has its own set of challenges and rewards, you must assess your existing capabilities to identify which one will yield the best results. IMEC has developed an effective solution that will enable you to review your existing capabilities, gather voice of customer feedback, identify up to three high growth markets, and complete the external research and market plan to pursue those markets. Call your IMEC account manager to begin your diversification journey today.
