Selling to a government: improving the odds
Exploiting potential losses to build consensus in the public sector
Companies that do business with the public sector must employ project acquisition strategies that are tailored to the sector. In this thesis, I explore one such situation. BearingPoint Caribbean aims to sell to governments in the Caribbean, tries to build consensus among different departments of a government to ensure project implementation. Using an adapted version of the Caillaud & Tirole (2007) model, I show that they are best off when they face two departments, of which the most favorable one carries a larger share of the potential project losses. In this situation, they can generate a persuasion cascade started by the most favorable member of the committee and thusly increasing the probability of project implementation. A strategic implication of this finding is that they should focus on approaching pairs of departments that fit this profile with their sales offer.