strategy development and partner identification in the us market · pdf filestrategy...
TRANSCRIPT
Mr. Steve Lanier
Managing DirectorAWSYour Partner in Export & Investment Promotion
Strategy Development and Partner Identification in the US Market
AWS Company Profile
� Based in Washington, D.C.
� 20 years of experience
� 6 employees
� Ongoing industry relationships
AWS
Our Clients
Strategy Development
AWS
� Current Market Size and Trends
– Is the market growing for the product area?
Where are the “pockets” of growth
– What are the buying patterns of end-users and
consumers? Are they changing?
– What industry trends are occurring in the
sector – consolidation, green focus?
AWS
Strategy Development – Market Research
Strategy Development – Market Research
AWS
� Case Study – Industrial Cleaning
Machines
- Company produced cleaning equipment for
assembly line or stand-alone use
- Identified business trend of
“outsourcing”/renting equipment
- Target included equipment rental
companies who had significant interest
� Competitor Situation
– What are the characteristics of the competitive
environment?
– Are there many competing or similar products on
the market?
– Is the market dominated by one large company or
is the market fragmented?
AWS
Strategy Development – Market Research
Strategy Development – Market Research
AWS
� Case Study – Engine Controls
- One competitor controlled 80% of the
market
- Distributors had exclusive agreements
- Identified complementary product
distributors and manufacturers
Partnership Strategies
AWS
� Use Systematic Approach
– Understand market trends
– Determine time and resources available
– Complete systematic research - use multiple
sources – trade shows, databases
– Do not get married too soon
– Understand types of partners and options
AWS
Partnership Strategies
� Importer/Distributor
– Advantages
• Can offer national coverage
• Offers warehouse and stocking ability
• Has capacity to manage large volumes
• Provides after-sales-service
– Disadvantages
• Tend to be box “movers”
• Little capacity or desire to educate customers
• Controls distribution and end-user clients not known
AWS
Partnership Strategies
� Sales Representative or Agent
– Advantages
• Works in close relation with manufacturer to produce
customized products
• Close relation to clients and clients are known
• Willing to educate clients about the product
• Especially desirable for technical, customized or high
end products
– Disadvantages
• Usually small with 1-5 people
• Sales coverage only regional
• Rarely offers warehouse or after-sales-service
AWS
Partnership Strategies
� Complementary Manufacturer
– Advantages
• Offers warehouse, national coverage and after-sales-
service
• Often can work with technical and customized products
– Disadvantages
• Difficult to identify a good partner that is not a
competitor
• Often controls the complete marketing process
• Can demand to use their own brand name on products
AWS
Partnership Strategies
� Own Sales Office
– Advantages
• Complete control of the marketing and sales process
• Clients are known and long-term relationships can be
developed
– Disadvantages
• Requires significant investment – most costly and risky
option
• Requires significant time to develop a marketing and
client support network
AWS
Partnership Strategies
Lessons Learned
AWS
Lessons Learned
� Strategy
– Always opportunities in the US and world markets
– must find niche
– Market research is important – even if facts are
already known, must be analyzed
– Trends and competitive situation important – can
guide strategy when seeking a partner
AWS
Lessons Learned
� Partner
– No “right” solution – each option and partner has
positive and negative aspects
– Complete systematic research andthoroughly
evaluate potential partners
– Do not get married too soon
AWS
Thank you
Steve Lanier
1247 Wisconsin Avenue NW
Suite 201
Washington, DC 20007
T: +1.202.296.3755
F: +1.202.333.0017
AWS