Hedging sales risk in volatile markets

There are many unknowns and factors that can have an enormous impact on your business and your revenues in sales like:

  • Dependency from few / single customers, markets and products
  • Market entry of new competitors from other branches
  • Costs and demand volatility
  • Changing roles in the value chain

These can be divided into endogenous (originating in your own company), exogenous (initiated by external stakeholders) and disruptive (suddenly occurring and game-changing innovations, e.g. digital photography) factors.

Anticipating, recognising and drawing the right conclusions plus putting the right strategies and measures in place is the task for entrepreneurs and sales strategists.

Recently, entrepreneurial foresight has been rather limited in many cases.

The Corona pandemic, the disruption in supply chains, and the Ukraine war were all supposedly unexpected. Although, there have been many studies and concrete findings that predicted these developments, or the existing risks.

There are also many developments that have been known for a long time, such as climate change, the refugee crises, innovations of competitors or one-sided dependencies on unreliable suppliers. Nevertheless, in many cases no strategies that secure the future have been developed by the companies proactively.

Finally, there are developments that small and medium-sized companies in particular couldn’t have anticipated due to a lack of knowledge and insights,. Exactly where there has been no reflection of companies regarding the influence of these factors on sales – This is where we come in!

With SRAM* we offer a solution especially for medium-sized companies in order to identify the individual risks for their own business and to put in place the right decisions for their sales strategy.

The starting point of our approach is the analysis of 20 SARM* checkpoints

  • – Exogenous factors (UN SDGs; world risk report,….)
  • – Endogenous factors (competitiveness, innovative strength, sourcing strategies,…..)
  • – Disruptive factors (new technology, game changers, sudden loss of sales markets,…)

SRAM = Sales Risk Anticipation Management

The aim is to find out how resilient your sales organisation is regarding external factors  such as markets developments, changing customer strategies and business models.

We then carry out a risk assessment with you and define concrete measures before it is too late!

Tools that are used are among others PESTEL, Porter’s Five Forces, as well as by us newly developed tools such as the Digital Business Model Radar

The following approaches will be used or the implementation depending on the starting point: Small Customer Management, D2C, Market Entry Strategies (Piggybacking…), Business Model Canvas, Customer Loyalty Management, Key Account Management, Sales Enablement, …..

We look forward to working with you.