Realities of Adjacent Market Entry

Published: July 7, 2016


Entering adjacent markets is touted as less risky than entering new markets. Why then do so many companies underperform their growth expectations when executing these strategies?

Growth strategies to enter adjacent geographic, product or service markets are supposed to be less risky and offer more upside because they leverage the core capabilities of the current business – buyers, consumers, products, technologies, suppliers, materials, etc. However, actual results from executing adjacency strategies are mixed. Here are some examples:


Proactive Worldwide has provided intelligence that helped our clients create robust business cases that resulted in success. We have also completed intelligence projects to uncover the reasons why the original business case is underperforming – along with improvement roadmaps to course-correct their strategies. Here is an example:


Proactive’s Market Entry and Defense Services can help you create a robust and fact-based business case so your plan is in the success column, the first time. We have helped clients leverage the focus they have in their core capabilities while benefitting from revenue growth through adjacent diversification. If you’re preparing a business plan, growth strategy or correcting current performance, contact us – we can help!