Michael Jordan's Weblog

Some smart people in my organization have an ongoing conversation about the concept that each Sun location can be plotted against a "market lifecycle." In other words local markets, like products, go though phases such as First-Presence, Growth, Maturity, Decline.

In the First-Presence phase, perhaps the company doesn't even provide office space to the people who work in that market (maybe they use the customer's site for their office or they go to Kinko's to download email). When there is enough business that the market becomes a Growth location, perhaps leased space is necessary, along with other infrastructure. Et cetera.

It's easy to describe the real estate symptoms of local markets, e.g., e-suite, small office, campus/complex, etc. But what are the external business conditions that tell you whether you have the right level of infrastructure?

• Legal requirements? (e.g., you can't do business in our country unless you incorporate here)
• Customer density? (e.g., one customer = no office; ten customers = small office)
• Channel partner density?

Once the external business conditions are identified then the infrastructure response is fairly straightforward. But this is where I am interested in the opinions of the masses on what external business requirements should be considered and how to know when those conditions have matured, therefore requiring the next level of infrastructure build-up (or reduction).

Any thoughts?