Question

why is it better for a business to enter the market in a small way? give an example

Answer 1

It is said that many organisations who are now one of the Forbes Fortune 50's used very small techniques and ways to enter the market. It is considered to a better way to enter the market in a small way because:

1. Costs would be certainly low: When you are new to a market you can't establish a big business and spend or invest millions of dollars on it. You have to slowly understand the market, make a small investment which would be cheaper and understand the dynamics of how the industry and market works.

2. Risks would be understood: When entering the market in a small way, you are able to safeguard yourself from various risks available in the market. By going low, you understand the kind of risks available, how you can get away with it and the risk benefit analysis could be easily taken in the small business.

3. Competitior and Marketing Strategies: At last, going small would make you connect to your market, demands and consumer present at a better level. You can take time to understand your strategies and competitor analysis by going low and short in the initial times.