The situation
Softronic Baltic AS is an Estonian IT firm which operates in the
field of software development, consultancy and systems analysis.
The company is part of the Swedish IT group Softronic AB. The group
provides solutions based on modern IT, which in today's terms means
internet technology, in order to create better business for the
customers. The company sells both its own products and specialised
solutions for customers.
Starting in 2001, the company has started to introduce its own
products, the first of them being MediSpa System (a software system
for health spas). Also, in co-operation with Western-European clients,
the company is implementing mobile business systems for use in transport
and logistics business.
The main problem for the company is to leverage marketing efforts
and to sell its own products to a larger number of customers. A
small firm can't have its own large network of sales due to limited
resources. At the same time, the nature of software products requires
a high number of sales. Software products are skilled labour intensive
but when developed the software copying cost is low.
The process
The market for internet based transportation solutions is at the
early stage of development. So far there are no big monopolistic
players with ready solutions. Good IT skills and lower development
costs give Softronic competitive advantage compared to competitors
in Western Europe. However companies in the transportation or health-care
sector could choose mediocre products from other software solutions
offered by local firms or by companies with well-known brand names.
Therefore Softronic's tasks is to introduce itself to many potential
customers and to develop existing relations.
The outcome
The company has tried to develop its relations with several customers.
Several methods have been used. Firstly by 'snowballing' and finding
new clients via existing loyal customers. With good references from
old customers this method has been successful. A second method has
been identifying the right networks and networking partners. The
co-operation agreement with Estonian Dentists Association serves
as an example of such co-operation. Like most small and ambitious
firms Softronic continues to search for networking partners to realise
its strength in internet software development.
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Learning points
Software and IT industries have several specific characteristics.
Software products are relatively expensive to develop but when they
are ready they are easy to copy. At the same time they require a
good sales network in several countries. Being a small company in
Estonia makes it difficult to undertake adaptations for customers
of the software and to have personal communication with customers.
Good local partners are needed.
Being a niche player also requires good contacts with bigger networks.
Such networks could leverage a company's market efforts and give
access to more customers.
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STORY
The
Estonian small enterprise Softronic Baltic AS is an information
technology company owned by Softronic AB (Sweden). The company is
highly competent in the telecommunication software sector, with
10 years experience in software development. Historically, most
of the company's clients have been from Sweden. However, in recent
years Softronic has co-operated with Estonian and Western European
customers and partners. Identify alternative approaches