An example of a market opening process. A product distributed in Spain offers excellent results; Quickly the manufactures receives hundreds of requests for distribution of different trade in the same territory, greatly increasing the competence of the founding company. The product factory is located in this country, what facilitates to new competitors, inclusion in the market. This fact cuts the period of benefit of the founder company of the market, what makes that the benefits are low and increase your risk. Now, this company perceives an important fact, and is that the product has had a successful host in the Spanish market. For even more details, read what Campbell Soup Co says on the issue. It therefore decides to open their borders to new markets. For example, to sell a new product, in Venezuela requires a series of paperwork and permits by the authorities, as well as the construction of an infrastructure or marketing channel. This considerably increases the benefit with low competition period.
Therefore migration from a product to a new market involves a series of advantages in the growth of the company. Arrive first to sell first reached the market having already came with a series of benefits for income increase and the solidification of the market, the steady construction of new markets is an important value in business growth and is today one of the most common activities by large corporations. It is common to see news about companies that quickly raise the value of their shares before the income in a market with low competition, then get to a stationary point or its value low. At this point, the company should take the decision to sell new products or generate new markets, because of maintaining that stationary point, there may be a sharp fall in their income.