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T HE Y ORK G ROUP We make going global easier
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Copyright© 2002 The York Group International, Inc. www.theyorkgroup.comwww.theyorkgroup.com Global Reach Local Relationships The York Group International Technology Partners © Copyright 2006 – www.theyorkgroup.com Little Things Can Mean A Lot
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Copyright© 2002 The York Group International, Inc. www.theyorkgroup.comwww.theyorkgroup.com Global Reach Local Relationships The York Group International Technology Partners © Copyright 2006 – www.theyorkgroup.com Forces Driving Globalization MarketTransparencyMarketTransparency InvestorRequirementInvestorRequirement EmergingMarketsEmergingMarkets GeographicDiversityGeographicDiversity
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Copyright© 2002 The York Group International, Inc. www.theyorkgroup.comwww.theyorkgroup.com Global Reach Local Relationships The York Group International Technology Partners © Copyright 2006 – www.theyorkgroup.com Anyone Can Go Global Going global is not a problem The real challenge is to do it profitably.
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Copyright© 2002 The York Group International, Inc. www.theyorkgroup.comwww.theyorkgroup.com Global Reach Local Relationships The York Group International Technology Partners © Copyright 2006 – www.theyorkgroup.com The Start of “International” Thinking Always wanted to go to Paris – why not set up our European HQ there? We just sold a big license to Ford, and they want us to support an installation in Brazil A guy from Korea we met at a trade show wants to be our distributor there. They speak English, don’t they? China is huge. Let’s set-up an office in Beijing My cousin Vinny lives in Australia and knows people in the computer industry Canada is just another state… so, we could sell from here! You know it’s summer there during Christmas!!
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Copyright© 2002 The York Group International, Inc. www.theyorkgroup.comwww.theyorkgroup.com Global Reach Local Relationships The York Group International Technology Partners © Copyright 2006 – www.theyorkgroup.com Going Global Market Entry Strategy
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Copyright© 2002 The York Group International, Inc. www.theyorkgroup.comwww.theyorkgroup.com Global Reach Local Relationships The York Group International Technology Partners © Copyright 2006 – www.theyorkgroup.com Market Entry Options Domestic Company International End User Subsidiaries Selling from Home Direct Resellers Market Partners OEM Indirect ?
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Copyright© 2002 The York Group International, Inc. www.theyorkgroup.comwww.theyorkgroup.com Global Reach Local Relationships The York Group International Technology Partners © Copyright 2006 – www.theyorkgroup.com Direct vs. Indirect DirectIndirect InvestmentHighLow Time to marketSlow in today’s market Better access to prospects Mgmt requiredSenior levelOperations level Learning curveLimitedCould be extensive Cost of failureHighLimited exposure
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Copyright© 2002 The York Group International, Inc. www.theyorkgroup.comwww.theyorkgroup.com Global Reach Local Relationships The York Group International Technology Partners © Copyright 2006 – www.theyorkgroup.com Two Basic Channel Models You are a strategic product OR You are a portfolio product The resellers do their own marketing ORYou produce leads for the resellers They sell a lot of your product ORThey don’t sell much at all Either
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Copyright© 2002 The York Group International, Inc. www.theyorkgroup.comwww.theyorkgroup.com Global Reach Local Relationships The York Group International Technology Partners © Copyright 2006 – www.theyorkgroup.com 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 Salespeople take the path of least resistance Agree and monitor milestones Slipstream into the “flow” by taking small steps
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Copyright© 2002 The York Group International, Inc. www.theyorkgroup.comwww.theyorkgroup.com Global Reach Local Relationships The York Group International Technology Partners © Copyright 2006 – www.theyorkgroup.com Distance and Profits DistanceTrust Profits
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Copyright© 2002 The York Group International, Inc. www.theyorkgroup.comwww.theyorkgroup.com Global Reach Local Relationships The York Group International Technology Partners © Copyright 2006 – www.theyorkgroup.com Partner Application Identify Potential Partners Manage the Prospect Pipeline Follow-upInitial Contact Product EvaluationLetter of IntentMarketing PlanFinal ContractSchedule Training Recruitment Process
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Copyright© 2002 The York Group International, Inc. www.theyorkgroup.comwww.theyorkgroup.com Global Reach Local Relationships The York Group International Technology Partners © Copyright 2006 – www.theyorkgroup.com Going Global Market Selection
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Copyright© 2002 The York Group International, Inc. www.theyorkgroup.comwww.theyorkgroup.com Global Reach Local Relationships The York Group International Technology Partners © Copyright 2006 – www.theyorkgroup.com Europe Today
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Copyright© 2002 The York Group International, Inc. www.theyorkgroup.comwww.theyorkgroup.com Global Reach Local Relationships The York Group International Technology Partners © Copyright 2006 – www.theyorkgroup.com A Single Europe? French cooks British police German engineers Swiss organizers Italian lovers HEAVEN British cooks German police French engineers Italian organizers Swiss lovers HELL
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Copyright© 2002 The York Group International, Inc. www.theyorkgroup.comwww.theyorkgroup.com Global Reach Local Relationships The York Group International Technology Partners © Copyright 2006 – www.theyorkgroup.com 123 LanguageUKNordic, the Netherlands Germany, Spain, Eastern Europe Adoption CycleNordic, the Netherlands UK, Spain, BalticsFrance, 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, FranceUK Ease of Market Entry
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Copyright© 2002 The York Group International, Inc. www.theyorkgroup.comwww.theyorkgroup.com Global Reach Local Relationships The York Group International Technology Partners © Copyright 2006 – www.theyorkgroup.com Japan Keiretsus Understanding Patience Implementation Drinking
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Copyright© 2002 The York Group International, Inc. www.theyorkgroup.comwww.theyorkgroup.com Global Reach Local Relationships The York Group International Technology Partners © Copyright 2006 – www.theyorkgroup.com Korea Indirect market Often overlooked, despite its size Cell phones, broadband and gaming Structural instability, political and economical North Korea a real wild card
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Copyright© 2002 The York Group International, Inc. www.theyorkgroup.comwww.theyorkgroup.com Global Reach Local Relationships The York Group International Technology Partners © Copyright 2006 – www.theyorkgroup.com Why China?
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Copyright© 2002 The York Group International, Inc. www.theyorkgroup.comwww.theyorkgroup.com Global Reach Local Relationships The York Group International Technology Partners © Copyright 2006 – www.theyorkgroup.com Challenges in China Not a developed market for many products Piracy and counterfeiting Immature distribution systems Lack of local management talent
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Copyright© 2002 The York Group International, Inc. www.theyorkgroup.comwww.theyorkgroup.com Global Reach Local Relationships The York Group International Technology Partners © Copyright 2006 – www.theyorkgroup.com India 2nd largest emerging nation in world 3rd fastest growing economy in the world 3rd largest GDP in Asia 4th largest market in terms of purchasing power (a middle class market of 300 million) TV audience of 400 million people Service sector contributes 45% of GDP
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Copyright© 2002 The York Group International, Inc. www.theyorkgroup.comwww.theyorkgroup.com Global Reach Local Relationships The York Group International Technology Partners © Copyright 2006 – www.theyorkgroup.com Sunrise Sectors 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
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Copyright© 2002 The York Group International, Inc. www.theyorkgroup.comwww.theyorkgroup.com Global Reach Local Relationships The York Group International Technology Partners © Copyright 2006 – www.theyorkgroup.com India Market Entry - Challenges 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
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Copyright© 2002 The York Group International, Inc. www.theyorkgroup.comwww.theyorkgroup.com Global Reach Local Relationships The York Group International Technology Partners © Copyright 2006 – www.theyorkgroup.com 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
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Copyright© 2002 The York Group International, Inc. www.theyorkgroup.comwww.theyorkgroup.com Global Reach Local Relationships The York Group International Technology Partners © Copyright 2006 – www.theyorkgroup.com THE YORK GROUP Thank you! Any questions?
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