Corporate Market-Entry Analysis

The problem: A client believed it could leverage its skills and competencies, channels of distribution and customer base in entering an ancillary market. Doing so would presumably aid customers by providing them with an additional product from the same supplier, potentially reducing their supplier base. Unfortunately, these were all assumptions.

The solution: Acclaro developed a tight scope, focused on testing a very specific set of hypotheses with customers and prospects. We also investigated the successes that competitors were seeing within this market in order to evaluate the attractiveness of this market, relative to its current ones.

The result: While we learned that the market was just as exciting and attractive as the client assumed it was, the competitor insights were only half the battle. The real question involved customer and prospect receptivity to a new source of supply. Since customers saw little value in a broader line, were highly loyal to current suppliers, and valued focused experts over broad line suppliers, we were able to confidently recommend that they not enter the market. The client gratefully agreed.

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