You must first complete Step 1: Market Segmentation before viewing this Lesson

Step-2-Selecting-a-Beachhead-Market-cyprus-cyprusinno 2

 

Having researched and analysed between 6 to 12 potential market opportunities, it is now time to select just one market opportunity from the matrix you created. The beachhead market is the most suitable market for an entry that will allow you to gain a dominant market share and expand to other markets thereafter.

The idea is to take action and notice quickly if the chosen market will be viable or not. If it is viable, you can proceed. Otherwise, go back to your matrix to identify an alternative market. In the beginning, it is best to avoid the largest market as you will be learning, which is best done in a smaller market where you can get high exposure to customers.

In order to find that smaller market that you can dominate, you should break down your beachhead market into smaller segments. In order to dominate a market, the smaller and more focused it is, the better. If a market satisfied the following conditions, it means that efficiencies of scale are possible, which can help you ‘go viral’:

 

  • The customers within the market buy similar products
  • The customers within the market get similar value from the product and have similar sales cycles
  • There is word of mouth between customers

 

 


→ Click the View the Lesson Quiz button below and successfully complete the quiz to advance to the next lesson...


 

References:

Aulet, B., (2013). Disciplined entrepreneurship: 24 steps to a successful startup. John Wiley & Sons.


 

Back to: Developing an Idea & Validating the Opportunity > Defining Your Target Market and Customer

Log in with your credentials

or    

Forgot your details?

Create Account