10 new markets at the price of one market

2018-02-01

Category: All International growth

Keywords: International Growth, Internationalization, Strategy

Author:

10 new markets at the price of one market

It is said about Finnish companies that they do not know how to sell or do marketing, especially, on the international markets. Typically, technology is top-class, but selling style is much engineer-driven and talks about their product characteristics. “We’ll first try ourselves from the neighbor if there’s need for our product.” Familiar stories, but is the reason for moderate sales skills? The Finns have, in fact, good seller features on the international environment. For example, we are famous for a strong expertise and trustworthy. Both of these features are needed in establishing good and long-term partnerships. Why then we seem lame in internationalization and international sales? Below are two case examples of the B2B-sales in an international environment.

The growth strategy, part 1.0

Company A has faced a situation where growth in the domestic market has stalled, but the company needs to grow further. International markets could be the solution, but the amount of investments and challenges seems quite heavy. The company decided to open an office in Sweden and to hire two senior sales representatives to enter the market. In the beginning, the plan seemed promising. Representatives received a good number of new sales opportunities and the negotiations went successfully forward. Then the first challenges appear. One of the guys decided to change career since this business did not seem the right path for him. The company had just orientated this person to do his job, and everything supposed to be ok. The company lost time and money. After a new round of recruitment and induction, everything got step-by-step back in action again.

The Company operates in the rapidly changing technology sector and the development of the industry changed suddenly. Just when the company overcame the first challenges, there appeared a replacement product on the market, and the competition became tougher. This led to a decrease in profitability, and already potential sales opportunities failed away from the pipeline. The market changed over time and the company was forced to give up the growth strategy, and to return home. Several hundreds of thousands of euros were lost, and the only result achieved was the fact that this method did not work.

The growth strategy, part 2.0

Let’s move on to the second growth-strategy from real life. Company B decides to diversify risks and targets more aggressive growth than the Company A. Company B decides to expand markets from one market to ten markets and at the same time they use the same amount of money as the company A did. The main difference is that Company B uses a growth orientated partner who is able to execute that growth strategy. The company B has a scalable product, and the production is ready to receive an increasing demand.

Partner examines the target markets and they are capable of using their own resources to approach a number of selected customer groups and at the same time a number of different markets. Partners sales support functions qualify major part of the new opportunities. The company did not go clogged with new sales opportunities, as sales support covers 90% of contacts and share only the most potential sales opportunities to the Company B. In addition, sales partners take care of the follow-up of the project if a deal is not carried out from the first contact. Company B is able to handle 10 markets at the same time because time management is aimed at just the right companies. The expansion was executed in phases 3 to 4 countries at one time.

What is interesting about the 2.0 growth strategy is the fact that the company’s success is not dependent on one market only or the individuals on the market. Having an opportunity to choose company B can focus on the best market and prioritize the winning markets.

The author works as a consulting partner at Excedea and implements growth strategies like growth strategy 2.0. which client promise is: “We’ll open 10 new markets at the price of one”. Why? Because success is more likely to happen. You can get more familiar with our services here.

If you are interested to discuss the topic further please contact Henri Norio by email at henri.norio@excedea.com.

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