- June 16, 2017
- Posted by: Wordminds
- Category: Facts, Informational
LSP’s are often stumped when it comes to devising growth strategies for their business. They ponder going international, adding new services, closing more sales, and more. The CSA, however, advises that businesses should be focusing on how to grow their profits.
In a past article, we spoke of the 4 success strategies for LSPs. So, in this one, let’s look at how to create the total addressable market.
The Ground Work for Growth Planning
According to the CSA, the key pre-requisite for successfully planning your business’s growth is to select your target markets. You can define your market in terms of certain criteria, like geographical location, type of company, company size, and so forth. Next, LSP’s can begin planning and implementing their identified growth measures.
Growth Measures for LSPs
- Offering development – this tactic centers around introducing new services or products to your market. It ties in well to market development and penetration, but allows you to sell different levels of quality to match pricing levels. For example, you could add new services, more language combinations, and offer complementary services such as DTP to reinforce your current offerings.
- Increasing market share – this is about increasing market share by offering your services to your target market.
- Developing the market – take your offerings and sell it to new industries, clients, and geographical locations. This will require you to invest in new initiatives, new markets, and the development of new sales channels.
- Diversification – this strategy consists of providing new offers to new markets. Both the solutions and the markets need to be significantly different. To succeed with this strategy, it is important for LSPs to measure the risk. It will take time to develop thorough knowledge of your new market and create solutions to best meet its needs. But, this strategy offers the highest opportunity of significant growth.
Don’t Be Afraid to Mix Things Up
It’s okay to mix initiatives, since this will be good for the sake of risk management. Just remember, though, that quality always wins over quantity. In other words, start small and then add more strategies over time, as you get used to new offerings, new markets, and new levels of quality.
LSPs should be able to manage and deploy their growth initiatives with ease by opening global offices, developing new offerings, or building the expertise to service an entirely new market. If that sounds a little daunting, they can always try the mergers and acquisitions option to fit their strategy and help to kick-start growth.
People the world over prefer to communicate in their native tongue, and that fact alone drives LSP’s revenue. To support the rapid growth of the industry, LSPs need to continue to extend their repertoire beyond basic localization, translation, and interpretation, to fully embrace their client’s global content strategies.