The VAT, cultural gap and legislation, .. amongst others challenges

To limit the risk of failure, it is important to understand all of the potential risks, which may include: Limited knowledge of market and cultural issues can result in unanticipated expenditures, lost time and sales opportunities.

Lack of EU business: experience may expose the company to contract complexities and legal restrictions, penalties, and unforeseen and damaging brand consequences.

The EU software industry is very relationship oriented. Appropriate industry contacts are not readily accessible or are resistant to engaging new suppliers.


Already-in-place contract agreements or a corporate mandate to select suppliers from a prequalified vendor list may present roadblocks to hamper a new supplier from the opportunity to compete.

Overconfidence in the technology and traditional way in which solution design and development are done in US may not fit with the more consultative, hands on EU problem solving style approach.

Expanding into the EU market with a ‘business as usual’ mentality often increases risk. Remote management with decision-making done from an office at the overseas parent company isolates the company and key management from the market and inhibits direct customer interaction.

Sometimes US companies tap top-quality technical personnel to manage the EU operation. These individuals may have technical expertise, but lack management and sales experience. In addition, they are not typically familiar with local customs, business practices and industry purchasing protocol.

Reliance by the home office on what is traditionally comfortable and familiar further isolates the operation from meaningful customer interactions.

EU prospects buy from companies whose solutions meet a need and from people who are easy to do business with. Companies looking to expand into this market should:


Clearly identify the niche target markets and individual prospects your company needs to reach, and form a strategy with a compelling selling proposition. You will assign the mission. Yoorop then will devise a plan and develops tactics. Yoorop can generate market intelligence, determine an appropriate market strategy, develop solution appeal, prepare marketing materials and perform direct prospect meetings, sales calls and reporting cycles so that you stay in command. This strategic guideline will provide essential traction and more than likely reduce the risk, time and cost of establishing a solid presence.

Build solution awareness and recognition. Your company has to communicate value and present performance expectations that connect the buyer to your company and its solution. Yoorop can help position your brand with an EU value based market orientation. A professional, on the ground, well-managed EU entry campaign has the best chance of creating sales.

Targeted, face-to-face presentations that are supported with a consistent, Solution -defining media presence reach the ‘best’ prospects and shorten the purchasing decision cycle. Understand and plan for unexpected changes in market conditions and government regulations. Change is a fact of life. Yoorop on-the-ground sales and marketing team should be familiar with the movements in the industry, and they should stay well informed by reading industry newsletters and publications to stay on top of issues as they emerge. By staying flexible and connected, your sales and marketing team can assist you in identifying change so that you can transform risks into specialized opportunities. Maintain communication with key potential customers to keep your solution and products firmly positioned in the customers’ mind. Yoorop sales and marketing team should be able to maintain direct contact with prospects and, at the same time, expand the communication channel so that your name is supported in industry trade publications.

The best way to build new customer loyalty is to offer them local support. Your point-of-sale aftermarket presence, training and service infrastructure lends credibility and expertise, and answers questions immediately, as they arise. This personal and collaborative relationship builds loyalty, and positions your company way ahead of the competition to reinforce the value of your brand. Customer loyalty is long term and lucrative.

Success or failure?

A knowledgeable, experienced local sales and marketing partner can be an invaluable resource for guiding your company through the critical first steps in developing a EU presence. Frank and open assessments, recommendations, a defined solution strategy and direct, personalized selling programmes can make the difference between your company’s success and failure.


Yet, some challenges remain and have to be anticipated for every new player in EU. Taxes and legislation are different within the EU countries, Employment conditions and wages might vary tremendously whether you act in UK or in Spain. For instance, a senior consultant will be paid on a daily basis of $ 2.000 in UK and less than $1.200 in Spain. Payment installation will be made on a daily or monthly basis instead of hourly or weekly.

Cultural differences are also to take into considerations when it comes to speed up the market penetration.

As far as the legislation goes, Yoorop will provide you with the relevant information in order to avoid any legal barriers. Such legislation rules will depend on your business solution and the various impacts on the country regulations. It’s common to consider a standard EU regulation as a first step prior to hit specific country regulations. It’s the case for instance with the electronic signature and e-business transactions.

The biggest challenge will also be the first local customer to create confidence and awareness in the market.  No specific rules but a fine tuned strategy and market experience.

Written by Super UserPosted in: Blog