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5 min read

Expanding abroad: Opportunity or risk for software companies?

Globalization and digitization are opening doors for companies to expand their business beyond national borders. Such an expansion abroad entails both opportunities and risks. This is particularly relevant for software companies from Scandinavia and the USA that are targeting the German market. Especially when your products are highly complex and cost-intensive, a well-thought-out strategy plays a decisive role. The focus is on the question: How can the German market be reached optimally? The answer lies in the combination of comprehensive market research, an effective sales strategy, and possibly the use of local expertise by outsourcing sales agencies. The success of this strategy depends on how well it is tailored to the specific circumstances of the target market.

Build bridge expansion
Author
Tim Schillinger
Last updated
02/2024

Sales: The key to success

One of the most important factors for successful expansion is the sales strategy. As Tim Schillinger, our company founder, points out: “If you want to assert yourself on the international market, you have to think beyond borders. And that starts with sales.” Each target market country has its own special features, which must be considered. A Scandinavian company that has developed cutting-edge logistics software, for example, is faced with the challenge of taking into account the special features and needs of the German market. The software must comply with EU regulations and at the same time be attractive for German companies. A US provider of AI-based security systems is presenting similar challenges, which must act in compliance with strict German data protection laws. It is therefore essential to develop a tailor-made sales strategy that focuses on local requirements. It can be an advantage to work with a local partner who has specific market knowledge and contacts.

Outsourcing sales agencies: partners for expansion

Against this background, outsourcing sales agencies can be valuable partners. “These agencies are a powerful tool for companies that want to internationalize,” explains Dr. Richard Oehmig-Kuhn, our Strategic Advisor and Partner. They have deep knowledge of local markets and can provide decisive support in positioning and marketing products. They can also help bridge cultural differences and build effective business relationships.

Let's take the example of the fictional US software company “SecurAI”, which wants to establish its advanced AI-based security system on the German market. SecuraI could work with a German sales agency that is familiar with the legal requirements, cultural differences and market conditions in Germany. The agency could help develop and implement an appropriate strategy. It could also establish valuable contacts with potential partners and customers, which would save SecuraI a significant amount of time and resources.

Opportunities and risks of outsourcing sales agencies

Hiring an outsourcing sales agency has both advantages and challenges. “The decision for an outsourcing agency should always be based on careful analysis,” advises Dr. Oehmig-Kuhn. “It is important to select the right agency and ensure close cooperation.” A well-selected and committed sales agency can help to shorten the time to market, provide access to local networks and overcome cultural barriers. On the other hand, unclear communication and different business practices can lead to misunderstandings. For example, there could be disagreements between SecurAI and the contracted sales agency regarding expectations or performance evaluation. It is therefore important to make clear agreements and promote an open communication culture.

conclusion

Ultimately, expanding abroad is always a mix of opportunity and risk. However, careful planning, a well-thought-out sales strategy and possible cooperation with outsourcing sales agencies can help to make this relationship positive. “The world is full of opportunities,” Tim Schillinger summarizes. “The challenge is to recognize and use them. And that starts with sales.” In order to take advantage of these opportunities, it is crucial that companies identify, manage and minimize risks. This means that they must carefully analyse both the local market and their own position and capabilities. This would also enable SecurAI to successfully enter the German market and expand its business.

Keywords

Expansion abroad, risk, opportunity, sales strategy, outsourcing sales agency, international markets, market penetration, revenue growth, local market knowledge, business goals, corporate success, Scandinavian software companies, US software companies, data protection laws, local market conditions.

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