How to select international strategic markets for my business 02

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Barcelona Activa Empresa

Barcelona Activa Empresa

How to select international strategic markets for my business? Theresa Desuyo Founder, Balena Partners www.balenapartners.com

Activitat cofinançada per:

Š Theresa Desuyo


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The day’s agenda

Framework to Internationalize Examples Exercise and Action Plan

Learnings and Tips

Š Theresa Desuyo


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A Framework

“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,...).

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


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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.

Source: Prof. Lluís Renart, IESE BusinessDesuyo School Š Theresa


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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 © Theresa Desuyo


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EBAY

DOMESTIC SUCCESS INTERNATIONAL CHALLENGES © Theresa Desuyo


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Theresa Desuyo

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eBay background

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• 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.

Theresa Desuyo

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Product search Assessment Request

buyer

Price negotiation

seller

Ordering Payment Product delivery

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Buyer • Security • Selection • Protection against fraud • Quality sellers • Deals • Alerts and updates

eBay- Value proposition as a Marketmaker

Seller • Quality Traffic • Security • Protection against fraud • Selling Opportunities • Promotional Opportunities • Business tips • Alerts • Being close to the market

© Theresa Desuyo


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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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Financial Times ranked Business School

EDUCATIONAL SERVICES FT RANKED Š Theresa Desuyo


Snapshot

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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 © Theresa Desuyo


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Target markets

• US

• Value-added and expertise

• UK

• Language, Anglo-Saxon and proximity

• China

• Eye of the “storm”

• Italy

• 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 © Theresa Desuyo


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Measuring risks and opportunities

WHERE AND WHY INTERNATIONALIZE? Š Theresa Desuyo


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Š Theresa Desuyo


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Manufacturing or commercial

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Customer service

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Design, Talent

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Where is your need?

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Area: Alliances v. Market

Impact on your organization

• • • • • •

• • • •

Production Distribution Talent Design Commercial / Sales Other

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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Action Plan

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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?

© Theresa Desuyo


Tips

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• 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 © Theresa Desuyo


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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


Barcelona Activa Empresa

Š Theresa Desuyo


Barcelona Activa Empresa

Š Theresa Desuyo


Barcelona Activa Empresa

Š Theresa Desuyo


Barcelona Activa Empresa

Readings and resources

• http://www.forbes.com/sites/china/2010/09/12/how-ebay-failed-inchina/ • http://www.businessweek.com/magazine/content/11_17/b42250390404 86.htm • http://smallbiztrends.com/2011/02/getting-international-business.html • www.doingbusiness.org

© Theresa Desuyo


Barcelona Activa Empresa

Thank you for your attention! Theresa Desuyo http://es.linkedin.com/in/theresadesuyo www.balenapartners.com

Š Theresa Desuyo


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