SMEs: THE SPECIALIZATION TRAP. HOW TO ESCAPE AND GROW

For many SMEs producing components, tooling, or offering services—from carpentry to mechanical processing and mold production—specializing in a single sector can become a significant risk. Recently, I collaborated with a company specializing in high-quality plastic molding that had focused exclusively on the European automotive sector over time. When this market experienced the sharp slowdown we are all familiar with, the company was heavily impacted. This situation highlighted a common issue for many businesses in the supply chain: dependency on a single sector—even if highly profitable—can become a double-edged sword.

📈 Diversify to Grow: A New Approach to Markets

THE SPECIALIZATION TRAP

The company then sought my support to identify potential clients in more dynamic sectors. Diversifying into fields such as medical technology or home automation—just to name a few examples—can open up new growth opportunities. In fact, the company already had some clients in these sectors but had never developed a structured strategy to expand its presence.

This scenario is more common than one might think: SMEs often limit themselves to seizing incoming opportunities without a real plan to expand into new markets. Additionally, entrepreneurs—often with technical backgrounds—tend to focus on product or production process improvements, believing that the solution to declining orders lies in new technological investments or quality upgrades. However, if the problem is declining demand, what’s needed is a shift in commercial strategy.

🛠️ From Strategy to Action: How We Worked

To tackle this challenge, I use tools like ExportPlanning Italia to identify the most promising markets in Italy and Europe. Once sectors with higher demand are identified, Matchplat helps me select potentially interested companies and provide the sales team with a targeted contact list, often including direct and non-generic emails.

⚠️ Caution: Turning these contacts into clients takes time! Even in the most dynamic sectors, no one is “waiting” for us: this is why it’s essential to start diversifying before the main sector enters a crisis. However, many companies, absorbed by technical and production activities, tend to postpone commercial and marketing investments, risking action only when order declines become evident.

⏳ The Time Factor: How to Accelerate Diversification

Exploring new sectors is not immediate, but some tools can simplify the process. LinkedIn is a valuable resource for establishing direct connections with companies and decision-makers, offering a quicker alternative compared to email or phone calls. Another crucial step is participating in trade fairs, which allows businesses to observe final products, understand specific needs of new clients, and adopt a more targeted approach in commercial proposals.

🤝 My Support for SMEs

With my experience and the use of advanced digital tools, I can help SMEs build a solid diversification strategy by identifying potential markets and clients to reduce dependency on a single sector.

📢 Investing today in a broader approach ensures greater stability and growth for the future: info@progetticommerciali.com

Pier Paolo Galbusera