Entering Conscious Consumer Markets: Toward a New Generation of Sustainability Strategies

What is it about?

Startups and multinationals are increasingly interested in entering markets defined by consumer interest in more environmentally and socially responsible products and services. Yet these segments vary significantly in terms of the scope of the opportunity and the extent to which sustainability values influence the buying decision. This research was designed to uncover how these factors could be leveraged to drive market entry strategies for multinationals and startups interested in conscious consumer markets.

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Why is it important?

------------------------------------------------------ Contribution to Academic Scholarship ------------------------------------------------------- In the past decade scholars have been increasingly interested in the interplay between established multinationals and startups as it pertains to sustainability. This research expands our current understanding by refining market entry strategies for multinationals and startups when entering conscious consumer markets. ------------------------------------------------------- Contribution to Management Practice ------------------------------------------------------- There is a growing demand from mainstream and niche consumers for more environmentally and socially responsible products and services. Often, the early entrants in sustainability segments have been startups. Yet multinationals are also recognizing the growth potential in this segments. This research, resulting in the CCM Entry Strategies Matrix, provides guidance to multinationals in choosing a proper entry/acquisition strategy when entering growing conscious consumer markets. ---------------------------- Author Perspective ---------------------------- Boyd Cohen: "We were intrigued by how there have been such vast differences in how startups and multinationals have faired when entering conscious consumer markets. From our anecdotal perceptions, it seemed that sustainable startups were more frequently involved as early entrants in emerging conscious consumer segments. Yet, once validated as a legitimate market opportunity, established multinationals have entered the same segments, some times with great success and others with much less. In many instances multinationals have chosen to enter through acquisition of a sustainable startup, while in others the multinational entrant has chosen to build versus buy. We were keen to explore these dynamics through a more rigorous multi-case study approach in order to clarify which strategies are most successful under what conditions."