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Sunday, May 14, 2006

On expansion

Bruce Greenwald makes a strong case against expansion outside your niche. Should a little technology firm doing well in its local market (Pakistan), think about expansion in the Middle East (UAE and Bahrain).

Bruce's take ties straight into Sun Tzu framework - the incumbent has an advantage. The offender will not be prepared. If your local niche has space for you to grow, go for it; compared to a not well thought out international expansion that may suck you dry.

I have been looking at the Middle East ever since I founded Alchemy. Every year I take a few trip into the region to see where the opportunity is and how to target it. Every year I find more work at home. Should I feel guilty if I aim for low hanging fruit.

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