Develop your business on a local or regional market

25 years of experience feedback in IT Channel

Some time ago, I posted on the capacity of French companies to reorient their production tool, to face the pandemic linked to Covid19.

Many of you have viewed this post, almost 2,000 views. Thank you.

I can only draw a parallel between this magnificent capacity for adaptation and the establishment of foreign companies in a territory they do not know.

For 25 years, I evolve in the IT Business. Resellers, distributors, software editors  and vendors, French or worldwide, Start-ups, SMEs or public companies from NYSE or NASDAQ.

This experience allowed me to understand the challenges of local implantation by a global group. It also allowed me to understand the differences from one market to another, from one commercial population to another, from one business owner to another.

Each market, each company, client or prospect, has its own environmental, economic, legal and social constraints.

The even more specific French market cannot be approached by a foreign company as it will approach its local market. I have seen too many companies fail in their establishment, for not wanting to adapt their initial GoToMarket to the targeted market. And this, with huge blows of disproportionate launch costs, with ambitions in total inadequacy with the local market.

Too many international companies model their international GoToMarket on their local GoToMarket.

It is therefore necessary to become aware of this and to provide a local or regional response to global development.

1. This therefore requires a good understanding of the offer of the company that wishes to set up, but also of its structure, its processes (technical, billing, delivery), the possibilities of up-selling.
2. Local regulations are also to be taken into account. If I want to develop a business linked to a regulated activity (eg telephony), what are the constraints? If I wish to import Devices into a country, what is the regulation in force, for example in terms of noise pollution or the emission of electromagnetic waves. Should I face a quasi-monopoly market?
3. Are the prices charged and product licensing also compatible with my local or regional market? What are the customs duties on the market? Is there an interest in proposing a price 2 times higher than the market price, if we are not known or if the features are basic?
4. Will I be able to answer quickly to customer and prospect requests? What about the delivery process? Will it be done locally or by international teams? What will be the levers to activate with the teams and who will be my sponsors?
5. The sales stratefy is also important. Namely, should I develop my sales through a distribution network or directly, and why not in hybrid mode?

I invite you to see all these points in a series of articles to come which will come in the next few weeks.