Here are some key challenges of growth by market extension:
1. Customizing the product or service for the new market's preferences and needs while maintaining brand identity can be difficult. Successful adaptation is required.
2. Entering new markets requires additional investments in distribution, promotion, customer support etc. This increases costs.
3. Competition may already be well-established in the new markets, making it hard to gain market share.
4. Differences in customer behaviors, regulations or economic conditions across markets can be challenging to navigate. Firms must thoroughly understand new markets.
5. Managing growth across multiple markets strains management attention and resources. Coordination becomes more complex.
So in summary, the main challenges are