- March 24, 2017
- Posted by: Wordminds
- Category: Uncategorized
With the boom in international trade has come the increase in demand for addressing consumers in their cultural idiom and native language. Given the intricate nature along with the new media involved in communicating with foreign markets, language service providers are developing more complex techniques and tools for managing communication with different countries.
There is no denying that the language industry is a thriving business. In fact, the global market is growing at a rate of 5.52 percent per year, and localization is reported to be the fourth fastest growing industry in the U.S.
So, how are LSP’s ensuring their growth and success? Below, we discuss four strategies.
Penetrating the Market
Market penetration revolves around the concept of increasing market share by offering your existing services to your target markets. This is by far the lowest risk of the four strategies when we think in the short term, as your business likely already has a presence in the market and you know your offerings and customers well. You probably also have adequate insight into your customer’s needs as well as your competition’s performance and services.
To succeed with this strategy, LSPs must ensure the market is big enough for their offerings. It’s worth determining how much of the target market is already secured and then figuring out the remaining revenue opportunities for your offerings.
This is all about taking that same offering you already have and selling it to new markets, whether it is new clients, new industries, or new areas. You will need to make investments to support your new endeavors, and you will need to identify new target markets, expand into new regions, or even deploy new sales channels.
Develop Your Offering
This strategy involves introducing new offerings – packages or products – to your current market. It really goes hand-in-hand with strategy number one, penetrating the market, as it provides ample support selling more offerings to your existing customers. It also works well with strategy number two, above, when the needs of your new target market needs a few tweaks to your current offerings.
The last of the four strategies for taking your LSP forward in the industry is diversification. This means providing new services to new target markets. Both the offerings and the market should differ greatly to be a success.
Compared to the other three strategies, this is the riskiest of the lot, as it means moving into a market you may not know well with new offerings you may not have thoroughly tested. You will have to acquire in-depth knowledge of the market and come up with offerings that best meet their needs. Diversification may be risky, but it also offers the greatest chance of ample growth for LSPs as well as providing protection against unstable markets.
LSPs know that watching their bottom line, or profit margins, focusing on the job at hand, reducing operational overheads, and preparing for smaller and cheaper jobs are all keys to success in this industry. But, the above four strategies are sure to take your business from strength to strength while helping you cast your net wider.