One common theme that we hear as we speak to industrial company executives, is the enormous challenge they face in achieving growth. Perhaps they are exposed to the depressed oil & gas or agriculture sector, or perhaps they are facing the export headwinds associated with a strong dollar. Most commonly, they see that the general industrial economy has experienced only very modest growth overall during the past five years.
In response to this core market growth challenge, many companies are turning to adjacent markets as a source of growth. However, this growth path presents a host of challenges. By definition, adjacent market opportunities involve moving into new product categories, channels or geographies that are unfamiliar. With each step taken farther from their core market, companies face new risks and aggressive incumbents that will not cede share easily.
An alternative path exists that involves far less risk and potentially far greater return. This alternative involves exploiting opportunities that lie at the edge of your current market offering, opportunities to capture incremental profits with the customers you have already won and assets you have already developed.
This Executive Insights examines how industrial companies can employ an Edge Strategy® mindset to create incremental profits by presenting customers with additional offers that surround the core product or service that defines their business.