|New Business Development
K Group brings broad experience to the field of new business
development. Our approach, NewRevStreams ID, to
building new business initiatives recognizes the enormous challenge
of finding opportunities that do not currently exist. For true
new business opportunities there is no “market”
or no customers. Therefore, there is no market size to estimate.
There are no competitors or channels of distribution, so there
is no one to copy. And probably most problematic, there is no
market definition in place, so the new business is (initially)
difficult to talk about.
Underlying those difficulties are tremendous opportunities.
The primary focus of each K Group project is to identify completely
new categories of business. New categories are created by our
clients (companies), not by our clients’ customers. Customers
can’t articulate a new business category. They can’t
respond to something they have never experienced. They can only
react to the new concepts that our clients create.
When Michael Dell conceptualized selling computers via the phone
and the internet, without a retail presence, the computer industry
thought that this new category would be a “flash in the
pan”. The past 10 years proved how wrong the retail
computer industry was.
Business development as practiced by K Group is not about satisfying
current customers. It is about creating new customers. It is
about articulating a new category of business, served by a completely
new brand and brand proposition, and about new sources of revenue,
Many firms mistake product (or line extension) development for
new business development. Our experience is that most new products
have marginal profitability, tend to cannibalize sales from
current products and rarely enhance the value of the firm’s
brand or the value of their stock.