t he y ork g roup

TTHEHE Y YORKORK G GROUPROUP

We make going global easierWe make going global easier

Copyright© 2002 The York Group International, Inc. www.theyorkgroup.com

Global ReachLocal Relationships

The York GroupInternational Technology Partners© Copyright 2006 – www.theyorkgroup.com

Little Things Can Mean A Lot




Forces Driving Globalization

MarketMarketTransparencyTransparency

MarketMarketTransparencyTransparency

InvestorInvestorRequirementRequirement

InvestorInvestorRequirementRequirement

EmergingEmergingMarketsMarkets

EmergingEmergingMarketsMarkets

GeographicGeographicDiversityDiversity

GeographicGeographicDiversityDiversity




Anyone Can Go Global

Going global is not a problem

The real challenge is to do it profitably.




The Start of “International” ThinkingAlways 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!!




Going Global

Market Entry Strategy




Market Entry Options

Domestic CompanyDomestic Company

International End UserInternational End User

SubsidiariesSubsidiariesSelling

from Home

DirectDirect

ResellersResellers

Market PartnersMarket Partners

OEMOEM

IndirectIndirect

?




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




Two Basic Channel Models

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

Either




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




Distance and Profits

Distance Trust Profits




Partner ApplicationIdentify Potential Partners

Manage the Prospect Pipeline

Follow-up

Initial Contact

Product Evaluation

Letter of Intent

Marketing Plan

Final Contract

Schedule Training

Recruitment Process




Going Global

Market Selection




Europe Today




A Single Europe?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




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

CommsInfrastructure

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

Ease of Market Entry




Japan

Keiretsus Understanding Patience Implementation Drinking




Korea

Indirect market Often overlooked, despite its size Cell phones, broadband and gaming Structural instability, political and economical North Korea a real wild card




Why China?




Challenges in China

Not a developed market for many products Piracy and counterfeiting Immature distribution systems Lack of local management talent




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




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




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




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 GROUPTHE YORK GROUP

Thank you!Thank you!

Any questions?Any questions?

t he y ork g roup

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