This document discusses a fundamental growth strategy decision for software companies regarding whether to enter new markets or offer complementary products in existing markets. It was found that companies tend to grow faster by creating more value for familiar markets rather than pursuing new market opportunities. The research highlights the importance of this early decision in influencing long-term growth outcomes.

1. New Products or New Markets?
Growth strategy fundamental choice
© Sirris, 2012

2. Background
For whom is it?
• For software companies, especially those who develop and
sell products that help customers in their operations
What did we do?
• A multi-year research effort with the help of various teams of
students from the Solvay Business School
© Sirris 2012

3. A fundamental decision
• We discovered an early decision in software companies
that has long-lasting consequences
• The decision is the answer to :
“To achieve growth, should we try to enter
new markets with our software products
OR
should we try to offer complementary
products to our existing markets?”
© Sirris 2012

4. What we discovered
COMPANIES GROW FASTER BY
CREATING MORE VALUE FOR
MARKETS THEY ALREADY
KNOW
THAN
BY ENTERING NEW MARKETS
WITH THEIR EXISTING
PRODUCTS.
Read the whole story here:
(within the limits of our
initial set of assumptions) © Sirris 2012 bit.ly/ScnLhe