Understanding the fundamental purpose behind your company's market expansion is not just advantageous – it is essential. 

Too often, organisations leap into new markets driven by opportunistic leads without examining the core motivations and the challenges such a move entails.

Case study

A software & engineering consultancy company originally focussed on the automotive sector decided to diversify into the then emerging market of wind turbine gearboxes.

This decision led to a profound transformation dictating comprehensive changes to the business. 

Project complexity

Previous software consulting projects were typically delivered by one or two engineers over a few weeks. 

Wind turbine gearbox design projects required much larger teams of multi-discipline engineers working together over months or years. 

The value of wind turbine gearbox projects was an order of magnitude greater than previous consultancy projects.  Any variances in spend and cash flow could have a significant impact on the finances of the whole business. 

New skills

Previous software consultancy projects required engineers with strong analysis skills. 

Additionally, wind turbine gearbox projects required skills in design, manufacturing and testing. 

Wind turbine projects needed dedicated project managers to deal the increased value and complexity. 

This led the company to set up a robust recruitment and training programme to integrate and develop these diverse skills effectively.

Technical challenges

The fundamental differences between analysing automotive transmissions and designing wind turbine gearboxes required the engineering team to learn about the new requirements and develop new technical competencies. 

Whilst the development of automotive transmissions involves testing many prototypes units to verify their calculated life, this is not physically possible for wind turbine gearboxes as they are designed to operate for 20+ years. 

Rigorous validation by analysis together with specific testing procedures had to be devised for wind turbine gearboxes. 

In addition, new design and analysis standards had to be created in view of the fundamental physical and operational differences between automotive and wind turbine gearboxes. 

Lessons learnt

The software & engineering consultancy business ended up creating a separate division to manage and grow the wind turbine gearbox activity. 

The motivation of the business was to contribute to sustainable energy solutions while leveraging its innovative engineering expertise.

This purposeful approach transformed what could have been a risky diversification into a strategic expansion.

Conclusion

Market expansion is not about chasing opportunities but about understanding the strategic and operational implications for your business.

A clear, purpose-driven "why" becomes your strategic compass, guiding decision-making, resource needs, and organisation changes.

For leaders, the message is clear: invest time in deeply understanding and articulating the fundamental purpose driving your expansion before jumping into new markets. 

Your strategic clarity will be the difference between a mere business move and a truly transformative journey.

I can help you

I work with overstretched leaders of engineering SMEs to help them prepare their business so they can achieve profitable growth. 

To explore how I could help you, please use the link below to arrange a free 30-minute conversation.

http://tinyurl.com/HerveJardonCalendar