Transcript Global Reach Local Relationships

THE YORK GROUP
We make going global easier
Little Things Can Mean A Lot
The York Group
International Technology Partners
© Copyright 2006 – www.theyorkgroup.com
Copyright© 2002 The York Group International, Inc. www.theyorkgroup.com
Global Reach
Local Relationships
Forces Driving Globalization
Market
Transparency
Emerging
Markets
Investor
Requirement
The York Group
International Technology Partners
© Copyright 2006 – www.theyorkgroup.com
Copyright© 2002 The York Group International, Inc. www.theyorkgroup.com
Geographic
Diversity
Global Reach
Local Relationships
Anyone Can Go Global
Going global is not a problem
The real challenge is to do it profitably.
The York Group
International Technology Partners
© Copyright 2006 – www.theyorkgroup.com
Copyright© 2002 The York Group International, Inc. www.theyorkgroup.com
Global Reach
Local Relationships
The Start of “International” Thinking
Always wanted to
go to Paris – why
not set up our
European HQ there?
A guy from Korea we met at a
trade show wants to be our
distributor there. They speak
English, don’t they?
Canada is just
another state…
so, we could sell
from here!
We just sold a big
license to Ford, and
they want us to
support an installation
in Brazil
You know it’s
summer there
during
Christmas!!
The York Group
International Technology Partners
© Copyright 2006 – www.theyorkgroup.com
Copyright© 2002 The York Group International, Inc. www.theyorkgroup.com
China is
huge. Let’s
set-up an
office in
Beijing
My cousin Vinny lives in
Australia and knows people
in the computer industry
Global Reach
Local Relationships
Going Global
Market Entry
Strategy
The York Group
International Technology Partners
© Copyright 2006 – www.theyorkgroup.com
Copyright© 2002 The York Group International, Inc. www.theyorkgroup.com
Global Reach
Local Relationships
Market Entry Options
Domestic Company
Direct
Selling
from Home
Subsidiaries
Indirect
?
OEM
Market Partners
Resellers
International End User
The York Group
International Technology Partners
© Copyright 2006 – www.theyorkgroup.com
Copyright© 2002 The York Group International, Inc. www.theyorkgroup.com
Global Reach
Local Relationships
Direct vs. Indirect
Direct
Indirect
Investment
High
Low
Time to market
Slow in today’s
market
Better access to
prospects
Mgmt required
Senior level
Operations level
Learning curve
Limited
Could be extensive
Cost of failure
High
Limited exposure
The York Group
International Technology Partners
© Copyright 2006 – www.theyorkgroup.com
Copyright© 2002 The York Group International, Inc. www.theyorkgroup.com
Global Reach
Local Relationships
Two Basic Channel Models
Either
You are a strategic
product
OR
You are a portfolio
product
The resellers do their
own marketing
OR
You produce leads for
the resellers
They sell a lot of your
product
OR
They don’t sell much
at all
The York Group
International Technology Partners
© Copyright 2006 – www.theyorkgroup.com
Copyright© 2002 The York Group International, Inc. www.theyorkgroup.com
Global Reach
Local Relationships
Why Don’t Resellers Sell?
Portfolio mentality
 A lot of “nice to haves”
Strategic product inertia
 2 products keep the company alive
Internal business processes
 Must happen quickly – or inertia takes over
 The sales process must be influenced
 Lead generation is the key
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Salespeople take the path of least resistance
Agree and monitor milestones
Slipstream into the “flow” by taking small steps
The York Group
International Technology Partners
© Copyright 2006 – www.theyorkgroup.com
Copyright© 2002 The York Group International, Inc. www.theyorkgroup.com
Global Reach
Local Relationships
Distance and Profits
Distance
Trust
The York Group
International Technology Partners
© Copyright 2006 – www.theyorkgroup.com
Copyright© 2002 The York Group International, Inc. www.theyorkgroup.com
Profits
Global Reach
Local Relationships
Recruitment Process
Identify Potential
Partners
Partner Application
Product Evaluation
Initial Contact
Letter of Intent
Marketing Plan
Follow-up
Final Contract
Manage the
Prospect Pipeline
The York Group
International Technology Partners
© Copyright 2006 – www.theyorkgroup.com
Copyright© 2002 The York Group International, Inc. www.theyorkgroup.com
Schedule Training
Global Reach
Local Relationships
Going Global
Market
Selection
The York Group
International Technology Partners
© Copyright 2006 – www.theyorkgroup.com
Copyright© 2002 The York Group International, Inc. www.theyorkgroup.com
Global Reach
Local Relationships
Europe Today
The York Group
International Technology Partners
© Copyright 2006 – www.theyorkgroup.com
Copyright© 2002 The York Group International, Inc. www.theyorkgroup.com
Global Reach
Local Relationships
A Single Europe?
HEAVEN
• French cooks
• British police
• German engineers
• Swiss organizers
• Italian lovers
The York Group
International Technology Partners
© Copyright 2006 – www.theyorkgroup.com
Copyright© 2002 The York Group International, Inc. www.theyorkgroup.com
HELL
• British cooks
• German police
• French engineers
• Italian organizers
• Swiss lovers
Global Reach
Local Relationships
Ease of Market Entry
1
2
3
Language
UK
Nordic, the
Netherlands
Germany, Spain,
Eastern Europe
Adoption Cycle
Nordic, the
Netherlands
UK, Spain, Baltics
France, Germany,
Italy
Economy, Market
Size
UK, France,
Germany
Italy, Spain,
Nordic, BLX
Eastern Europe
Comms
Infrastructure
Nordic, UK,
Netherlands
Germany, Baltic
states
France, Italy,
Spain
Corruption
(Least)
UK, Nordic,
Netherlands,
Germany
France, Italy,
Belgium, Spain
Greece, E. Europe
Competition
(Least)
Nordic, BLX,
Italy, Spain
Germany, France
UK
The York Group
International Technology Partners
© Copyright 2006 – www.theyorkgroup.com
Copyright© 2002 The York Group International, Inc. www.theyorkgroup.com
Global Reach
Local Relationships
Japan
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Keiretsus
Understanding
Patience
Implementation
Drinking
The York Group
International Technology Partners
© Copyright 2006 – www.theyorkgroup.com
Copyright© 2002 The York Group International, Inc. www.theyorkgroup.com
Global Reach
Local Relationships
Korea
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Indirect market
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Often overlooked, despite its size
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Cell phones, broadband and gaming
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Structural instability, political and
economical
North Korea a real wild card
The York Group
International Technology Partners
© Copyright 2006 – www.theyorkgroup.com
Copyright© 2002 The York Group International, Inc. www.theyorkgroup.com
Global Reach
Local Relationships
Why China?
The York Group
International Technology Partners
© Copyright 2006 – www.theyorkgroup.com
Copyright© 2002 The York Group International, Inc. www.theyorkgroup.com
Global Reach
Local Relationships
Challenges in China

Not a developed market for many products

Piracy and counterfeiting
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Immature distribution systems

Lack of local management talent
The York Group
International Technology Partners
© Copyright 2006 – www.theyorkgroup.com
Copyright© 2002 The York Group International, Inc. www.theyorkgroup.com
Global Reach
Local Relationships
India
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2nd largest emerging nation in world
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3rd fastest growing economy in the world
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3rd largest GDP in Asia
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4th largest market in terms of purchasing
power (a middle class market of 300 million)
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TV audience of 400 million people
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Service sector contributes 45% of GDP
The York Group
International Technology Partners
© Copyright 2006 – www.theyorkgroup.com
Copyright© 2002 The York Group International, Inc. www.theyorkgroup.com
Global Reach
Local Relationships
Sunrise Sectors
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Telecommunications : USD 37 billion
Retail : growth rate of 37% p.a
Health Care
Entertainment : largest film industry in the
world
Banking and finance
Insurance : only 20% insured
Biotechnology : next wave
The York Group
International Technology Partners
© Copyright 2006 – www.theyorkgroup.com
Copyright© 2002 The York Group International, Inc. www.theyorkgroup.com
Global Reach
Local Relationships
India Market Entry - Challenges
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Infrastructure hassles (transportation,
power outages, low telephone penetration)
Indian bureaucracy (inefficient &
sometimes corrupt)
Conservative mindset
Diverse market (16 official languages, 6
major religions, ethnic diversity)
Piracy
The York Group
International Technology Partners
© Copyright 2006 – www.theyorkgroup.com
Copyright© 2002 The York Group International, Inc. www.theyorkgroup.com
Global Reach
Local Relationships
Summary - Keys to Success
Market intelligence and data
 Know what you are getting into before going
 Plan for 2x as much time
 Budget for 4x as much money
Hire locally – the American mindset is different
 Foreign managers are just that… foreign
 You’re not from around here… are you?
Look “international” – product and marketing
 Simple things… like having a “.eu”
Partners and alliances
The York Group
International Technology Partners
© Copyright 2006 – www.theyorkgroup.com
Copyright© 2002 The York Group International, Inc. www.theyorkgroup.com
Global Reach
Local Relationships
THE YORK GROUP
Thank you!
Any questions?
The York Group
International Technology Partners
© Copyright 2006 – www.theyorkgroup.com
Copyright© 2002 The York Group International, Inc. www.theyorkgroup.com
Global Reach
Local Relationships