Partner Search & Selection Case Study 04
Overview:
A global CRM enterprise software vendor required sales acceleration of its software solutions business. StrategyCore business development and sales advisors provided partner search and selection services to actively develop Japan product sales on the client's behalf. StrategyCore concluded its partner search by signing a large system integrator to a distribution agreement with the client.
The Background:
In continuation of a previous StrategyCore custom research and analysis project, this multi-billion dollar global entity wanted to lower its risk and increase its chances of Japan entry success by first signing a distributor contract with a suitable system integrator before investing large financial resources into its future Japan business. A partner search and selection project was discussed that focused on indirect sales channels (system integrators, distributors, and large computer manufacturers), and direct end-user (financial services, telecommunications, and retail) targets.
The Challenge:
The cost to launch a new business in Japan (incorporation, office, legal, and human resources) had been estimated at approximately US$1.2 million in the first year alone. Immediate access to senior level system integrator, distributor, and OEM contacts in the industry was not going to be easy. The client had to decide upon either hiring a general manager to run the business from scratch (a nine-month to one year search), and opening an office (spending large financial resources), or work with a 3rd party consultancy to effectively develop partnership opportunities through indirect and direct sales activities. The corporate risk of not achieving success during that initial year, coupled with the large financial requirement to start-up a business in Japan was high. The client wanted a low service cost associated with executing distribution sales as compared with hiring local staff and renting office facilities.
The Solution:
StrategyCore and the client entered into agreement to provide the sale of client products in Japan, in addition to providing the client with recruitment of a Japanese executive employed as the initial general manager of the client Japanese entity. StrategyCore began by working with the client in the development of Japanese language marketing materials. We then started direct contact and introduction of client products to tier one-system integrators, distributors, and computer manufacturers having targeted client end-users. Concurrently, StrategyCore assisted in the development of a Japan price book by investigating competitive and system integration pricing information. Managing the evaluation process from initial company and product introduction, to product functionality and business model and pricing mechanisms, StrategyCore led all communications and relationships between the client and prospective partners.
The Results:
Within nine-months of introducing the client to the #1 ranked system integrator to the financial services industry in Japan (based on annual revenues), and at the end of a lengthy five-month contract negotiation, the client successfully signed its first distribution partner in Japan. During the ongoing partner search process, StrategyCore was also able to actively search and select qualified software executives for the client's general manager position. Upon completion of the distribution agreement, the decision was made to open an office and hire the new general manager for Japan.
Additional Case Studies:
Competitive Intelligence & Assessment Case Study 01
Global banking entperise software vendor case study: client competitors and distributors of major Japanese financial group
Custom Research & Analysis Case Study 02
Global Customer Resource Management (CRM) enterprise software vendor case study: market entry research and analysis of distributors, end-users, and entry models
Strategic Advisory & Planning Case Study 03
Supply Chain Management (SCM) enterprse software vendor case study: market strategy development for Japan solution launch
Business Management & Operations Case Study 05
Global Knowledge Management (KM) enterprise software vendor case study: low risk, outsourced business model for entering Japan
Executive Search & Selection Case Study 06
Sales Force Automation (SFA) enterprise software vendor case study: the hiring of an alliance director