Case type 04
Market expansion
Growing into a space close to what the company already does (a new segment, channel, or nearby region) and testing whether the unit economics pass.
19 min1 lesson Facts checked against sources on
Start the lesson Market expansion
How do you approach a market expansion case?
- Define the new segment, channel or region, size it, test whether the company's strengths carry over, and check the economics against the cost of expanding.
- The most common mistake: assuming a bigger market is always better, without checking whether the company can win there.
- Anchor on the goal (how much growth, by when, at what hurdle), test one unit against that hurdle, and if it fails, work out what would have to change before you suggest a pilot.
By the end you will be able to
- Judge an expansion on attractiveness, ability to win, and unit economics
- Test one new unit against the company's hurdle
- Work out what would have to change when the economics fail
Worked cases in this module
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Common questions: Market expansion
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