Overseas software company wanted to win UK market share by exporting its domestic strategy…
A software and services company had an impressive track record in France. The UK was the natural “next market” – as a near neighbour and natural gateway to the English speaking markets around the globe. We were asked to adapt materials for British audiences, while working closely with the newly appointed UK General Manager to build the company’s profile and professional network in the local market.
Very quickly, we learned that that the business model that had created such a successful base in France could not simply be applied in Britain. The rate card for the technology investment looked very different: not because the Sterling: Euro ratio made it unaffordable, but because the operational teams in British business units and companies likely to buy were much leaner. They simply lacked the headcount to operate the new platform. Taking into account the necessary increases in their operations budgets, the true cost of ownership of the platform was much higher in the UK than the French leadership team had anticipated.
Using the burgeoning network of contacts the company was developing, we then articulated an alternative positioning for the software company that would have catered for the British market. Because the UK model was at odds with the founders’ vision for their company, the French company took the decision to pull out of the UK market. The retreat, while unfortunate, conserved resources and leaders’ bandwidth to apply to other overseas markets.