Seven challenges when launching new business
- Senior market-specific challenges and new business challenges

The reasons why you encounter some challenges

The ways of doing business in many companies have not changed much compared to the past despite of the fact that the nature of the market has changed. We observe many “challenges” when companies try to launch new business targeting Baby Boomers and seniors. The followings are typical challenges they are facing in actual business scene.

  1. Market research challenge: companies cannot understand the customers’ needs although they have conducted intensive market research.
  2. Customer development challenge: potential customers whom companies have carefully targeted do not become actual customers.
  3. Selling products challenge: products which companies believe are excellent do not sell well.
  4. Developing products challenge: products which companies label for Baby Boomers or seniors do not sell well.
  5. Customers maintaining challenge: companies cannot retain members who entered a membership service.
  6. Profit making challenge: companies cannot make a profit even though they spend a lot of money to market new products or services.
  7. New business challenge: companies may experience “in-house” organizational friction when they try to launch a new business.

Commonality is that companies are facing multiple challenges at the same time

A common feature of these tough cases is that companies are contending with multiple challenges at the same time. In particular, the “challenge of new business” is often a large challenge when companies try to launch a new business.

This is not limited just to Boomers and seniors business. This is the friction which is inevitable in an organization when you launch a new business among existing profitable businesses. Friction is generated when a traditional organization, with a revenue structure constructed in the rapid growth period, tries to launch a new business targeting baby boomers and the senior market.

You need new ways of business practices not bound by past ties

The challenges we face in the Boomers and senior business scene are two types. One is the challenge caused by market diversity. Another is the challenge caused by organizational structure which cannot flexibly adapt to the change of the market.

The biggest reason why we encounter those challenges is that the traditions of past experience and past successes still remain among the management who make up the organization. Therefore, new ways of doing business are needed to overcome those challenges. You need to escape the bondage of past success experiences.