Are You Fishing in the Right Pond?

Market Expansion

Exploring adjacent market expansion, Blair Enns emphasizes the importance of starting as a big fish in a small pond before expanding. He suggests that firms should first dominate their initial niche and then consider moving into adjacent markets once they have outgrown their current one 1. Blair explains that the market itself will signal when it's time to expand, as it did for his own business when they realized their target audience had broadened 2.

The target is that at which you aim the markets, that which you're happy to hit.

--- Blair Enns

This approach allows firms to strategically grow by leveraging their existing strengths and expertise.

   

Market Disruption

Addressing market disruptions, Blair and David Baker discuss the impact of technological changes, such as AI, on various industries. Blair notes that AI is a significant disruptor, comparable to the rise of mobile technology, and expresses concern for businesses heavily reliant on software development 3. He advises firms to assess their market dependencies and consider shifting focus if they are overly reliant on vulnerable sectors like SaaS 4.

You used to could set a positioning and you could kind of put it on autopilot for 15-20 years and then it came down to about five years. Nowadays I'm thinking three is kind of the outside area where you need to like don't write it in ink, write it in pencil.

--- David Baker

This highlights the need for adaptability and foresight in navigating market changes.