How many Software Tech Competitors Do You Really Have in Your Sector?

Are you really certain you know how many companies operate in your particular niche?

The reality is, that the majority of software tech companies really have no idea. They operate within a segment of the market and, through somewhat tunnel vision, regard that as 'their world'.  They come into contact on a regular basis with the companies that are known to them, due to geographic location or because they share a similar vertical focus – but what about those companies that operate in a different locality or in a complementary niche..?

 

Competitors that are known to you are also very often, companies that:

·         Are the biggest in your sector

·         Are readily acknowledged in the sector and appear in consultants' and analysts' reports

·         Have a presence at all the important industry trade shows

·         Have websites with positioning similar to your own

·         Have former employees who have migrated to your company

 

Over the past decade and more, acquisition activity has reduced the number of ‘major players’ in the Software Tech space. Yet, the overall number of companies in the market has not decreased.  So, where are the other players hiding? 

By way of example, in the UK alone, there are just under 400 scanning capture service companies!  Worldwide, there are over 500 document management software vendors, including those focused on specific vertical markets and line-of-business applications, whether for healthcare, insurance, manufacturing or local government. In capture and related imaging software there are just over 200 vendors worldwide.  All of the above, forming a subset of the ECM/Information Management marketplace.

Is it possible there are hidden companies in the Software Tech Sector? 

There are many software tech companies that do not regularly garner the full glare of publicity and could be regarded as sitting "below the waterline", unobserved by the majority of the sector. Don’t make the mistake of assuming you are seeing a true and comprehensive picture of all your competitors. Software Tech organisations are too busy or simply unable to collect the data to establish a clear, bird’s eye view of the whole sector.

In 18 years of operating in this sector, Boss Equity has yet to meet, one company that has come close to knowing the true number of organisations active in their own industry; in fact, the majority underestimate the size of the market by a factor of two to three! Boss Equity is in the unique position of having a clear, unimpeded view and being in possession of the numbers.

 

So what?

If you don’t meet with the extended software tech marketplace regularly and are unaware of the companies beyond your immediate area of influence, why does it matter?  If you don’t know how many competitors you have, should that be of any concern?

We think, YES! You cannot afford to blindly create your business strategy, based on poor and inaccurate "guesstimates". Without proven market intelligence, how do you build a solid strategy and business plan?  Sometimes these unseen, unknown competitors can suddenly appear in your pond – with sharp teeth and a bite that could prove detrimental to your company – or worse still, fatal!! On a more positive note, there could be others, you’re not aware of, which could become strong business partners or even, potential acquisition targets.

When looking to sell or acquire

If you are considering acquiring, how can you be certain you are not “shoe-horning” your requirements into the wrong fit, due to your limited perspective? It has been shown repeatedly that opportunistic acquisitions are less successful and more likely to fail than proactive, planned and strategic acquisitions. To ensure you are a participant in the latter, you need, first, to ascertain a true and accurate overview of your sector or niche of interest.

Boss Equity doesn't just take a global view of the Software Tech sector, we are also able to segment it and analyse the individual technologies. We can also ‘slice and dice’ the industry by region and vertical sector as well as by company size. Armed with this information, we can truly appreciate the full extent of the market place and so, assist our clients by broadening their choice.

Please don’t hesitate to get in touch if you’re looking to sell or acquire and want to understand the full depth of the marketplace and the opportunities available.

 

info@bossequity.com

About Mark Edwards

 

21 June 2017