Driver 2: Markets

New segments, verticals, geographies, or customer types (your Ideal Customer Profile (ICP) and its adjacencies). In the framework, this is industry analysis plus segment selection: deciding which arenas to compete in.

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Part of The Six Drivers of Business Growth

How it grows the business: More addressable market gives an advantage you already have more room to run. Examples: Freemium, Land-and-expand pilot-to-full-deployment; adjacent vertical or geographic market expansion are classic examples of growth strategies.

Success Story: Slack (land-and-expand)

Slack landed inside individual teams via a free tier, then expanded seat-by-seat across the org until IT formalized it company-wide. Bottoms-up market entry turned single-team footholds into enterprise contracts without a traditional top-down sales motion.

Anchor comparison: Airbnb scaled to 220+ countries by localizing (regional hubs, local-language listings, market-specific pricing) rather than copy-pasting one playbook.

Failure Story: Homejoy

The on-demand cleaning startup raised about $40 million and expanded to Canada and Europe before its core unit economics worked. It acquired customers with steep first-clean discounts ($19 for an ~$85 service) who never rebooked at full price, so retention never materialized.

It shut down in July 2015. Expanding into new markets multiplies whatever unit economics you already have, and Homejoy’s were negative.

Anchor comparison: Target lost more than $5.4 billion opening 124 Canadian stores at once on a broken supply chain.

Authgnosis Services: I provide my clients with evidence-based market research, TAM/SAM/SOM analyses, and market expansion strategic planning to help guide senior management teams on where their green-field expansion opportunities are and which they should prioritize first.


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Authgnosis is my market-expansion strategy support practice.

Reading about the six drivers is one thing; diagnosing your own company against them is another.

I’ve turned this entire framework into a working intake tool: a Growth Diagnostic Checklist, a section-by-section guide covering all six drivers plus the talent layer and the honest “fulcrum” assessment. It’s the exact prerequisite information needed to map a company’s current state, growth strategy, and future state, and to name the one or two moves that will actually compound.

If you’d rather me do the work to collect that information and put it into a high-level assessment, let me know.

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Citations

Framework foundation: Anthony E. Boardman, Aidan R. Vining & Daniel Shapiro, “A Framework for Comprehensive Strategic Analysis” (2003).

Professional-service-firm lens: Andrew von Nordenflycht, “What Is a Professional Service Firm? Toward a Theory and Taxonomy of Knowledge-Intensive Firms,” Academy of Management Review 35(1), 2010.

Canadian funding figures: SR&ED enhanced expenditure limit per Budget 2025; NRC-IRAP 2025–26 contributions. Real-world examples drawn from public reporting.

Post FAQ

Why does entering new markets often accelerate a company's decline?

<p>Expansion is a multiplier on your existing unit economics and operational maturity, not just your revenue. If either is weak, growth scales the weakness faster than new revenue can cover it, which is why struggling companies sometimes fail fastest right after they expand.</p>

Why does land-and-expand work for some companies and stall for others?

<p>It works when the product creates natural expansion pressure (more seats or usage as value grows) and the initial wedge is genuinely sticky. It stalls when the free tier satisfies the whole need, or when expanding requires selling to a new buyer with different priorities.</p>