Software Companies Can Grow Fast Into Europe But Stay In Control

Software Companies can grow fast into Europe but stayin control of operations.
axel hoehnke
a@sembassy.com2009 July

Characteristics of the Software Industry
General Recommendations
Howsembassy can help

Opportunity – software can be distributed immediately on a global level . A single product could within a few years revolutionize the world
Challenge– "try & buy" sales is only seldom applicable. Some great software products never make it beyond some small-scale local market penetration
Customers make their purchase decision based on 4 major components:
Your customer value proposition
Your reference base
Your track record in the relationship
Your professional approach displayed in the sales process

What does this mean for your expansion plans?
A new technology is purchased by early adaptors and early innovators only, which again only represents some 10 % of total market volume. The remaining 90% cannot be penetrated, as they only purchase proven technology and preferably from a market leader.
The challenge for new technology providers is to jump from early adaptors and early innovators to the early majority and thus the main stream markets.

Establish bridgeheads
Strategies for crossing this chasm recommend to establish bridgeheads in the target markets [ … Crossing the Chasm by Geoffrey Moore]
In commercial terms the bridgehead is a number of customers in the new territory willing to support your further market penetration as references.
Creating a bridgehead requires that your customer value proposition is so compelling that a number of key customers are prepared to do business with you regardless of our lack of local representation and track record.

Create a compelling Value Proposition
Stanford Research Institute names it: NABC

Which important customer Need are your solutions addressing?
What is the unique Approach for addressing the Need?
What is the Benefit per cost?
How are these benefits per cost superior to the Competitive alternatives available to the customer?

Who is sembassy?
We provide Consulting [Planning and Implementation Services] and Temp Management and can be our Clients bridgehead in Germany / Europe
sembassy is a Germany based consultancy helping software companies to sell into a new market since 2002. We do so on a solid basis of experience from the software industry and using an already established network of resources. As we use standard methods and approaches , we ensure short term results and an attractive value proposition.

If sembassy servicesprovidevalue to your business, pleasestart the conversationbycontacting axel hoehnke @ a@sembassy.com orphone at +49.173.952.8000