Performance and usability in focus
MaxxECU develops and sells engine control systems for drag racers, street, track and time attack vehicles with value focus on high technology and quality products. The company was born when Natanael Ceder, MaxxECU’s tuner, felt displeased over the existing supply of ECU systems, which he resorted as a previous owner of a dynotuning business. Anders Svanberg, present developer at MaxxECU, was a customer of this company and they became friends. In 2009 they together founded MaxxECU, which today is the largest ECU producer in the Nordic.
Rolf Svanberg, CEO of the company, explained their main customer value: “We head for performance and to be the best on the market. Our products are technically advanced with high usability. Mainly, we compete in exceptional quality, not in price.”
Small company entering the US market
“As an industry actor within cars and car sport you want to be on the American marke, as this is where it all happens.”, Rolf stated. When expanding to the US, MaxxECU encountered a number of challenging questions: Where do you start when entering an existing market with a huge amount of established players? And how do you identify your market and find distributors?
Rolf explained the challenges the company was facing in their new market establishment and how this market differed from home: “The American consumers are choosy and used to their own products and brands. At home we have a renowned name, unlike in America. We are tech savvy and have a credible product, however we needed help in how to find an effective business strategy on this foreign market.”
Identifying new revenue streams
MaxxECU participated in Business Sweden’s business development process “Steps to Export” to identify their market, market strategy and distributors. Guidance was provided to develop extensive market risk analyses and action plans. Texas, Florida and California were identified as suitable markets in terms of customer demand and partners. The company started to collaborate with Business Sweden USA when entering the market in order to access a large international network in their industry. As a result, a number of tested distributors were selected for the company to meet with the aim of establishing long-term partnerships.
Increased international revenue
Today the company is working closely with three US distributors and sale rates on the new market are growing fast. The targeted sales volume of 200 units monthly has been reached and the year-to-date growth is 113 percent. “Our international sales are now spreading like rings on water, just as planned”, Rolf stated. Additionally, the company’s product range has expanded and the technical development level has been raised, to be able to meet the demand of the American consumers.
Rolf explained his experience of Business Sweden’s services: “Without this support the expansion would have taken significantly longer time, if we had even made it. Business Sweden’s values are professionalism and availability, our consultants have shown remarkable local market experience and we are able to call them to get advice whenever we need.”
MaxxECU’s internationalization journey started off in 2016 when the company was able to widen their horizons in Steps to Export. In 2017 they adjusted product development and saw increased growth on the new market. 2018 is the year when growth rates are expected to take off with further development in the US and even Latin America, Europe and China.