The term “Mid-market” is mainly utilized in the computer service and product area. It is a shortcut for the term middle market that refers to the BtoB market. Thus it represents all medium-sized companies that have 100 to 1000 employees.
The sales revenue or the range of employees retained to define the mid market differs in function of the sectors or companies which are part of the concept. The necessity to create a Mid-market “à la française” is often evoked in our country. It would be a market which gathers large SME with hundreds of employees. These would distinguish themselves from large groups by their innovative profile and their responsiveness, as well as by their agility and capacity to expand to any horizon, notably internationally.
More than 24,000 French Companies Concerned
The mid-market that software publishers attempt to target is comprised of 24,000 French companies with a labor force between 100 and 2,000 employees. They present needs in communication technologies and information systems other than those of the 5 million SME which have less than 100 employees or the approximately 50,000 companies with more than 2,000 collaborators. Placed between these two categories and well determined by analysts for some time now, this “medium” market has an identity all its own.
Significant Differences in Functioning
From a computerized management point of view, it does not present the same informational means, whether human or financial, in relation to large groups.
The other palpable difference is a lesser acceptance of the profits in relation to the exploitation of information systems. This is notably translated by the lack of use of information and communication technologies.
The lack of expertise also represents a real difference. In fact, these medium-sized companies do not necessarily have experienced information systems, although they are necessary for their development. However, the needs of these medium-sized companies in applications are similar to those of large groups.
Relative Criteria?
It is clear that medium-sized and large businesses have significant IT needs, particularly in the context of their development. This market generates the same expectations, that is, return on investment, simplicity of use and implementation, and the value of use. However, it is impossible to generalize when speaking of the mid-market. This is notably because their maturity in dealing with technological tools is more than variable. But in all cases, their economic clout remains superior to that of large and small businesses. It is therefore necessary to definitely count on this market for the future.
Why is it so Attractive?
The intermediary market offers a favorable area for the achievement of sales and significant profits without the intense competition observed in the large business market. Mid-market businesses also benefit from a strong growth potential, whether it concerns expanding their clientele, introducing new products or services, or exploring new geographic markets. Their more flexible organizational structure and relative agility allow them to rapidly adjust their strategies to market developments. This favors innovation and rapid decision-making.
What is more, the mid-market offers businesses an environment where the risk in relation to start-ups is lesser. In fact, these businesses have generally already established their position in the market and have a proven business model. Access to resources and financing is also facilitated in this segment. It supports the investments necessary to stimulate growth, innovation and competitiveness. Finally, customer relations can be more personal and geared towards loyalty in the mid-market. In fact, it favors long-term links with customers and thus contributes to the stability and predictability of revenues.
