Entering a Market Where There’s Little Demand for Your Product

Most companies focus their international expansion efforts on markets with evident existing demand for their products or services. But through a series of more than 100 interviews with executives and multinational organizations, the authors found that it is also possible (and potentially quite profitable) to expand into global markets without clear signs of demand. The authors outline three strategies that have helped firms around the world successfully launch into such markets: Start with a small initial investment, find creative ways to introduce local customers to an entirely new product category, and pivot the business to meet local needs. While entering a new region without existing demand is risky, a bit of patience and creativity can help companies preempt competition and find — or create — substantial long-term demand.