How to select international strategic markets for my business 02

Barcelona Activa Empresa

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Activitat cofinançada per:

How to select international strategic markets for my business? Theresa Desuyo

Founder, Balena Partners

www.balenapartners.com


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The day’s agenda

Framework to Internationalize

Examples

Exercise and Action Plan

Learnings and Tips


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A Framework

This process has the purpose of designing and implementing some strategies which will allow a company

– to exploit opportunities, and to avoid threats,

– to gain sustainable competitive advantages in its own domestic market of origin,

– and to penetrate and to capture a growing market share in an increasing number of world markets.”

“Internationalisation is a slow, step by step process whereby a

company increasingly commits itself globally. It employs people

from different nationalities, and learns how to use an

increasingly wider range of foreign sourced or foreign located

resources (technology, services, funds, organisational methods,...).

Source: Prof. Lluís Renart, IESE Business School


© Theresa Desuyo Source: Prof. Lluís Renart, IESE Business School

Framework 6 Phases towards

internationalisation

1. FIRST PHASE: A certain degree of consolidation in its own

original domestic market.

2. SECOND PHASE: The first steps towards exporting.

3. THIRD PHASE: Consistent exporting over time. Export volume growth. More products to more countries.

4. FOURTH PHASE: Setting up foreign sales and marketing subsidiaries.

5. FIFTH PHASE: Setting up foreign manufacturing subsidiaries.

6. SIXTH PHASE: The transnational corporation.


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External environment and special

considerations

• Legal issues

– Intellectual property

– Copyrights

• Economic

– Taxes, tariffs and customs

• Culture

– Target/Marketing and Talent/Recruiting

– Language

– Level of education

• Political stability

• Identifying partners

– Associations by trade, product, service

– Companies that have a complementary offering, capabilities, know-how

• Understand internal and external business processes

– Streamlining: What is the same, different

• Scalability- current infrastructure / localized infrastructure

– Adaptability of People, Technology

– Agility and responsiveness of suppliers and other partners


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DOMESTIC SUCCESS

INTERNATIONAL CHALLENGES

EBAY


© Theresa Desuyo Theresa Desuyo


© Theresa Desuyo Theresa Desuyo

eBay background

• Founded in September 1995, eBay (Nasdaq: EBAY)

• Claims to be The World's Online Marketplace® for the sale of goods and services by a diverse community of individuals and small businesses.

• The eBay community includes more than a 100M registered members from around the world.

• People spend more time on eBay than any other online site, making it the most popular shopping destination on the Internet.


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Product search

Assessment

Request

Price negotiation

Ordering

Payment

Product delivery

buyer seller


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eBay- Value proposition as a

Marketmaker

Buyer

• Security

• Selection

• Protection against fraud

• Quality sellers

• Deals

• Alerts and updates

Seller

• Quality Traffic

• Security

• Protection against fraud

• Selling Opportunities

• Promotional Opportunities

• Business tips

• Alerts

• Being close to the market


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© Theresa Desuyo

Source: Alex.com


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Citysearch facts

• Founded in 1996 and headquartered in West Hollywood, California

• Citysearch is the essential local guide

• Covering more than 75,000 locales and over 18M local businesses nationwide

• Citysearch combines in-the-know editorial recommendations,candid user comments and expert advice from local businesses

• Citysearch is a subsidiary of CityGrid Media and is headquartered in West Hollywood, California.

• Then, sold banners, web sites and ecommerce solutions

• Today, pay-per-performance advertising


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© Theresa Desuyo


© Theresa Desuyo

EDUCATIONAL SERVICES

FT RANKED

Financial Times ranked Business School


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Snapshot

Opportunities

• Strong domestic brand

• Grow international brand

• 50+ international partners

• Not yet exploited

• Existing models at similar organizations

• Deliver value to the client

Challenges

• Internal debates

• Varying internal goals

• Current talent not prepared

• People resources slim

• Partners only accustomed to collective exchanges

• Not known internationally

• Divisive and unclear strategies

• Long processes

• Each country, each institution has its own culture


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Target markets

• US

• UK

• China

• Italy

• Value-added and expertise

• Language, Anglo-Saxon and proximity

• Eye of the “storm”

• Expertise in Luxury Goods


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Partnering Strategy

2001

• Similar culture

• Experimental

• Brand image

• Contacts

• Complementary content

• Exchange basis

• Paid basis

• Used to learn before establishing greater commitment

Process lasted until 2006 before developing a stronger international partner


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WHERE AND WHY

INTERNATIONALIZE?

Measuring risks and opportunities


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© Theresa Desuyo

Manufacturing or commercial


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Customer

service


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Design,

Talent


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Where is your need?

Area: Alliances v. Market

• Production

• Distribution

• Talent

• Design

• Commercial / Sales

• Other

Impact on your organization

• In-house

• Outsource

• Partner

• Resources


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Exercise: Self-assessment and

brainstorming

• Business Model Generation

• Principal output

– Key Resources

– Key Partners

– Cost structure


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© Theresa Desuyo

Action Plan

Task Objective Metrics Timing Resources

1

2

3

4

5

6

7

8

9

10


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Learnings

• What did you learn about your own company?

• What resources do you need?

• What research do you need to do before entering other markets?

• Have you considered your alternative routes

• What is your exit strategy?


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Tips

• Join associations online and offline

– Trade

– Complementary

• Do research on similar businesses

– Contact experts

– Informational interviews with other professionals

• Be open to new models of going international

• Search for domestic and international support

– Spain, EU


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Expanding your business outside the

European Union

• The European Commission proposes a new strategy aimed at helping small and medium-sized enterprises to expand their business outside the European Union.

The new strategy sets out 6 fields of action:

1. Strengthening and mapping the existing supply of support services

2. Creating a single virtual gateway to information for SMEs

3. Making support schemes at EU level more consistent

4. Promoting clusters and networks for SME internationalisation

5. Rationalising new activities in priority markets

6. Leveraging existing EU external policies

Source: http://ec.europa.eu/enterprise/policies/sme/market-access/internationalisation/index_en.htm


© Theresa Desuyo


© Theresa Desuyo


© Theresa Desuyo


© Theresa Desuyo

Readings and resources

• http://www.forbes.com/sites/china/2010/09/12/how-ebay-failed-in-china/

• http://www.businessweek.com/magazine/content/11_17/b4225039040486.htm

• http://smallbiztrends.com/2011/02/getting-international-business.html

• www.doingbusiness.org

http://www.forbes.com/sites/china/2010/09/12/how-ebay-failed-in-china/









http://www.businessweek.com/magazine/content/11_17/b4225039040486.htm

http://www.businessweek.com/magazine/content/11_17/b4225039040486.htm

http://smallbiztrends.com/2011/02/getting-international-business.html






© Theresa Desuyo

Thank you for your attention!

Theresa Desuyo http://es.linkedin.com/in/theresadesuyo

www.balenapartners.com

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How to select international strategic markets for my business 02