Liga’s business model – An introduction
What is Liga?
Society is in the middle of a digital transformation – some call it the Industrial Society 4.0 – a new digital age. But no matter what you call it, the shift from manual processes to digital processes is in full swing.
Liga delivers software that helps companies and government agencies move into the digital era.
With our standardized software you can take care of your digital security, identity and mobility in a way that offers advantages for the average employee and strengthens your business. And it makes sure you live up to the increasing number of legal requirements from the authorities.
As an essential part of our activities, we provide news and information about our products and technologies. We also offer technical train
ing and assist actively with sales campaigns and with getting deals done.
Liga has been in business since 1999 and sells via resellers to the Nordic market from our offices in Copenhagen and Stockholm.
We value long-term business relationships and are happy to take the initiative to make things happen.
New times in the IT industry
EU requirements, increased transparency, increased competition, trade across borders – they all play a role in running a business today.
Over the past 10 years, the sales model in the IT industry has changed drastically. Earnings on the sale of products have fallen and continue
to fall – even though there is high demand for the products. This is happening partly because the internet creates much better price trans
parency for customers in the European market, which has become much more integrated.
But the traditional distributor role in the IT industry has some major weaknesses:
- The producer doesn’t invest actively in building up a market – it passes on the costs and the risk to the distributor.
- At the same time, the producer has an incentive to make distribution competitive, getting several distributors to sell its products.
- And when the product reaches a specific market share, the producer will often create its own sales force, putting additional pressure on the distributor’s earnings.
New times require new thinking.
Liga is already moving on
We see these changes that are shaking the foundations of our business as a great opportunity to further develop our business.
That’s why we have developed – and continue to develop – towards something more than a traditional distributor.
From 2011 to 2016, we successfully switched from what we see as an antiquated sales model to a profitable model that responds to the weakness of the classical model. At the same time, it creates opportunities for expansion in the form of new products and a presence in new countries.
How we do it
Today our business involves three things:
We sell and market specialized products that require special resources in order to be sold. These might be new products that don’t yet have a significant market share, or they could be established products that don’t demand special technical expertise.
Sales and marketing work will typically be directed towards the end
customer with the goal of creating a footprint in the market.
Products in this category are cost heavy to sell, which means we work with two earnings models:
- Either we achieve significant earnings on each individual sale
- Alternatively, the producer covers the cost of the sales and marketing activities we carry out
Automate (doing business)
We automate the sales of standard products that do not require specific skills.
Products in this category have basically no marginal costs in the sales process, so earnings on each sale can be modest, but still profitable.
Automation ensures that it’s easy and simple to deal with Liga.
Correlate (our own products)
We sell Liga’s own products. These consist of software we have developed ourselves in combination with white label (OEM) components from third parties.
Liga’s development company – Liga Software – develops and owns the rights to products sold through Liga ApS under the same conditions as
Liga’s other products.
IT dealer and customer
Vendor and supplier
If you are an IT dealer and customer, it means that Liga can deliver IT products that meet the needs of you and your customers.
This applies for both competitive shelf goods and custom products where we draw on our multi-year experience to spot the newest and best technologies. We know the licensing rules and help you get the correct licenses.
But Liga does more than that. Via our communications and marketing activities, we mature the market and create a path for your sales efforts – to make it as simple and easy for you as possible.
If you are a vendor and supplier it means that Liga delivers a full service solution.
In addition to being a distributor, we deliver a sales motor that makes your products accessible on the market and helps you build a European sales channel. Through communication and marketing to customers and dealers via diverse channels, we help expand your market reach and help you create and mature a market, using everything from case stories, trends, and attitudes to products and opportunities.
We do this for both standard products competing on price and delivery speed and for the sales and marketing of more complex solutions.