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What kinds of things would you consider from a risk point of view prior to developing new routes to market?
Posted On Thursday, January 15 2009 at 11:20 AM
That would depend on your market. What is the size of your market? Who are you competing with? Is there a demand for your product? Is this market new or... see more is it in a new geographic area? Depending on the product, offering your product through both Company A and Company B can be very beneficial. You are offering an additional avenue for customers to purchase your products, providing them convenience. If those companies are in the same geographic area however, you may also create a problem. If Company A is taking away from Company B's sales, Company B will become frustrated and refrain from carrying your product. You also need to consider what other types of products Company B offers. Are they similar to your product? Will you share the same target market? What is the benefit offered to you by Company B? You might also consider looking into Company A. If Company A is doing just okay, what is it you don't like and what is it that you like but think they could be doing better? Are you finding Company B may repeat the same mistakes? Another factor would be distribution channel. Will your product be offered strictly in-store or online as well? This could create a window of opportunity or a hassle. Will the prices be the same? If there is a difference in price, even if through a sale, that gives one company an unfair advantage. You have two customers here which is the main factor to consider. You have your direct customers and then companies you distribute your product through. While it is important to think about your target market, a careful analysis of the companies you wish to work with is also important. You also need to do a cross-comparison. What does your target market think of Company A? Company B?

