Copyright 2016 - FireMatter, LLC
Why international tech companies fail their US market entry.
Markets, Products and People.
Copyright 2016 - FireMatter, LLC
Tech Scouting and Market Expansion
Engineer (PoliMi), MBA (IMD Lausanne)
IBM, P&G, HP + a couple of startups
Lived and worked in 5 countries
In USA since 1998
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About Me
Copyright 2016 - FireMatter, LLC
Why do international tech companies fail their US market entry?
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Market
Product
People
“Fail”
Mistakes of…
Copyright 2016 - FireMatter, LLC
Mistakes of Market
55
Photo: Gilles Tarabiscuité/CC
Copyright 2016 - FireMatter, LLC
Unfocused Targeting
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Copyright 2016 - FireMatter, LLC
“Large markets must be dissected into narrowly defined niches that then require extreme targeting.”
Viki Forrest, CEO, ANZA Technology Network
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Unfocused Targeting
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Misunderstood Market Dynamics
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• What the market values
• Distribution dynamics
• Regulatory shaping of industry structure
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Misunderstood Market Dynamics
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Sample of One (Customer)
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A.K.A. Extreme Market Extrapolation :)
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“Many companies come to America because one big customer has called them, but they have no plan beyond that one customer.”
Franz Neumeyer, German Automotive Executive
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Sample of One
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Mistakes of Product
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Photo: Steven Barringer/CC
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Poor Product Localization
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• Poorly localized features
• Poorly localized pricing
• Poorly localized collateral
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Poor Product Localization
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Overemphasis on Technology
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• Vs. value for the market
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Overemphasis on Technology
Technology
Ecosystem
Timing
Support
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Insufficient Firepower
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Insufficient Firepower
$600 billionsGlobal Advertising Spend
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Insufficient Firepower
$28 billions 5%
$20 billions 3%
$347
$96
$59432%$190 billions
Per PersonShare
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Mistakes of People
2020
Photo: j_arlecchino/CC
Copyright 2016 - FireMatter, LLC
Bad Hires
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• The expat
• The third-rate salesperson
• The dozen-gigs, rolodex-waving, interim-exec advisor
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Bad Hires
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Slow Reorganization
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Slow Reorganization
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Cultural Faux Pas
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“You have to network.”
Nima Adelkhani, CEO, PITME
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Cultural Faux Pas
Copyright 2016 - FireMatter, LLC
“They do not take the time to learn how to do business here, in terms of business culture and practices.”
Matteo Daste, Partner, Squire Patton Boggs
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Cultural Faux Pas
Copyright 2016 - FireMatter, LLC
“Many international entrepreneurs […] over estimate the value of the transactional aspect of business and under estimate how much of the business in SV is relationship based.”
Fadi Bishara, CEO, Blackbox VC
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Cultural Faux Pas