7 Mistakes Technology Companies Make When Entering the U.S. Market

The United States is the biggest single market in the world for technology companies. While other countries like China and India have larger populations, there’s no other country that offers the combination of attractive factors – a single language and culture, established contract law, stable currency, decent infrastructure and above all, sophisticated customers with money to spend. In our White Paper, Seven Mistakes Technology Companies Make When Entering the United States and How to Avoid Them, we share lessons that can help to avert difficulties when entering this dynamic, challenging and ultimately rewarding country.  For every successful international tech vendor like SAP, there are legions that have failed to crack the American markets in a meaningful way. We explore the potential mistakes in detail and provide best practices intended to improve the chances of success.

One of the main mistakes that international companies make in entering the U.S. is underestimating and under-investing resources into sales. Success in the U.S. markets for technology firms does not depend on the technology itself; rather the best sales effort wins in the end. The history of U.S. tech markets is ripe with examples of firms that prevailed over the competition through the power of aggressive selling. Author Geoffrey Moore’s works such as The Gorilla Game and Inside the Tornado provide illustrative stories of tech winners. In the database market, Oracle did not prevail over Informix, Red Brick, Sybase and other competitors because of the superiority of its technology; rather it was its legendary sales force that won the day. In the PC markets, Microsoft’s Windows dominated over Apple Macintosh largely due to the Redmond giant’s relentless marketing, sales and partnerships. There are many more opportunities ahead with the rise of Connected Industry for companies with expertise developed in Europe, Asia, Australia and Latin America to translate their unique perspective into the U.S. market. This White Paper provides several time-tested strategies for maximizing sales success for outsides. 

While the U.S. is a single country, the governmental and regulatory environment is not simple. In addition to the Federal Government and the myriad of agencies with jurisdiction over interstate and international commerce, there are also 50 state governments, and numerous local municipalities with regulations, tax structures, logistical, cultural and workforce distinctions.  It’s critical for a firm moving to the U.S. to select the appropriate locale, and to understand the pros and cons of where they decide to locate. The White Paper delves into some of the risks and challenges of navigating the laws and regulations, along with the different considerations involved with choosing where to plant the flag as a new business. 

Entering a new market is a significant undertaking for any business, and the U.S. provides both opportunities and risks for international vendors seeking to gain a meaningful foothold. While it’s impossible to anticipate every potential challenge, it is advisable to do as much homework as possible up front to improve chances of success. Make sure to read our new White Paper and follow up with Momenta Partners to chart a path to successful execution in the U.S.