Strategy consulting / International

In international markets, decisions must be made regarding products and know-how as well as distribution methods.

To support these decisions, we recommend carrying out a classic SWOT analysis (Strength/Weaknesses – a company’s strengths and weaknesses, Opportunities/Risks – the market opportunities and risks) to identify the following criteria:

  • Selecting the business areas that match the strengths of your company,
  • Selecting the target markets according to opportunity and risk,
  • Defining an ambitious distribution policy that takes into account the company’s resources and financial capacity, and
  • Drawing up a coherent business plan.

International customers are much more selective than domestic customers

Why should the customer buy products from us that probably already exist in their home market?

When it comes to sales and distribution, you should highlight your unique selling points, innovation, or special service.

This is done by:

  • Providing an overview and classification of the company’s most important business areas (SBAs, strategic business areas). When entering foreign markets, you must have clearly defined proposals, particularly in the B2B sector.
  • An analysis of the strengths and weaknesses of the company for each SBA.
  • A selection of internationally relevant SBAs. Ideally THE most compelling SBA.

Not all markets are created equally. It is therefore necessary for a company to prioritize investments according to each country, which can increase its chance of gaining a foothold and consolidating its presence in the long term.

Criteria:

BtoC

  • Consumer surveys: What are the consumer structures in each target country, and what are the special features?
  • What are the traditional distribution channels in the target country: large-scale, nationwide distribution or small sales units or even specialist retailers?
  • Purchasing power according to the customer segment
  • Purchasing criteria

BtoB

  • What are the drivers of demand in the industry? Are they price sensitive or are they long-term investments with high performance requirements?
  • Size and potential
  • Openness to international companies
  • Local competition

“God does not play dice” Albert Einstein

An effective distribution policy involves decisions based on the following factors:

  • Type of target company: SMEs – Key Accounts – Gloco (global companies)
  • Type of tender: standard – simple technology – technology or strategic purchases that require explanation – individual solutions with development
  • Revenue target:
    • Not important according to the principle of “hope as a strategy”
    • – + €3 million
    • – + €10 million, etc.
  • Service requirements: Simple logistics – hotline – maintenance – integration of R&D

 All these considerations are visually summarized in the following strategic chessboard.

STRATEGIC CHESSBOARD

Each business area with its own distribution policy

Of course, there are several other parameters to consider, such as:

  • Order value – recurring character of orders – logistics – customer service …
  • Type of negotiations in the target country: product-oriented or customer-oriented negotiations
  • Motivation of field sales representatives: Autonomy and highly variable proportion or process path, orientation and high fixed salary
  • Operational support of a subsidiary; corporate law, tax law
  • Leadership and management: Individual initiative or process

etc. …

ACCT offers an initial FREE AND NON-BINDING STRATEGIC CONSULTATION

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Specially developed solutions

Die deutsch-französische Strategieberatung

ACCT provides the appropriate business plan for each strategy.

We will assist you with the investments to be planned, the key element of your business plan, free of charge.

The projected revenues require an in-depth study, for which we are happy to make an offer.

deutsch-französische Strategieberatung: Business Plan

We would be happy to assist you in a free
and non-binding telephone call.

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