eu market entry strategic options and support services
TRANSCRIPT
EU Market Entry
Strategies
Helen Flowers
Copernicus International
Consulting Ltd
EU Market Structure
• 500 million consumers
• 23 million SMEs in the
EU
• Only 41,000 large
companies
• SMEs based in local
& regional economies
• SMEs are EU’s net job
creator
EU Business Environment
Winners and losers
Europe – how will the market
develop in world comparative
terms?
Country Forecast date 2010 2011 2012 2013 2014 2015-19
Global (market rates) Mar-10 2.9 3.2
Global (PPP rates) Mar-10 3.7 3.9
Euroland Feb-10 1 1.4 1.8 2 2 1.8
United States Mar-10 3 3.1 3 3 2.7 2.6
South Korea Jan-10 4.8 4.3 4.5 4.3 4.2 3.9
Europe – what growth should
we expect from the West EU?
Country Forecast date 2010 2011 2012 2013 2014 2015-19
Western Europe Mar-10 1 1.6
Austria Mar-10 1.1 1.4
Belgium Jan-10 1.1 1.5
Denmark Jan-10 1.1 1.7
Finland Mar-10 1.2 1.9
France Jan-10 1.3 1.6 1.7 1.9 2 2.1
Germany Jan-10 1.6 1.5 1.5 1.6 1.7 1.6
Greece Mar-10 -0.2 1
Ireland Mar-10 -1.3 1.8
Italy Mar-10 0.8 1.1 1.3 1.4 1.4 1.3
Netherlands Mar-10 1.3 1.6 1.8 2 2 2
Norway Jan-10 2.4 2.6 2.6 2.7 2.7 2.6
Portugal Jan-10 0.8 1.3
Spain Jan-10 -0.5 1 1.7 1.7 2.5 2.6
Sweden Jan-10 2.1 2.5 2.5 2.5 2.5 2.5
Switzerland Jan-10 1.1 1.8 1.7 1.8 1.8 1.6
UK Feb-10 1 2.5 2.2 2.2 2.1 2.2
Europe – what growth should
we expect from the East EU?
Country Forecast date 2010 2011 2012 2013 2014 2015-19
Eastern Europe
Bulgaria Jan-10 0.1 2.3 3.9 4.2 4.3 4
Czech Republic Mar-10 1.5 2.8 3.2 3.5 3.8 4
Estonia Jan-10 -1.3 2.9 3 3.8 4 3.9
Hungary Jan-10 -0.4 2.3 2.5 3.1 3.5 3.5
Latvia Jan-10 -3.2 2.4 3.1 3.2 4.1 4
Lithuania Jan-10 -2.1 2.3 3.4 4 4.1 4
Poland Jan-10 2.3 3.3 4.2 4.3 4.3 4.3
Romania Jan-10 1.3 3 4.4 4.5 4.6 4.2
Russia Feb-10 4.1 4.5 4.4 4.5 4.6 4.6
Slovakia Mar-10 2.3 3.3 3.3 4 4 4
Slovenia Mar-10 1.2 2.3 3.6 3.5 3.4 3.3
Turkey Mar-10 3.9 4.2 4.2 4.1 4.1 4.4
European Opportunities and
Business Environment
• Europe has a steady but variable growth from country to country forecast for the next 15 years
• Good credit risk, long term collaboration opportunities
• The developing Eastern nations will enjoy the highest growth rates– They have a hunger for new technology
– Their green economy is underdeveloped
– The EU money machine is migrating funds East
– Whole new infrastructures are being built
– What may be a commodity in Western Europe is still exciting to some early adopters in the East
• New market entrants now can create a sustainable competitive advantage and a long term revenue stream in central Europe via Copernicus
European Opportunities and
Business Environment
• Early adopters in Scandinavia and mature Western Europe markets
• Followed by rapid reduction in margins as products become commodities
• Emerging markets offer sustainable brand creation opportunities– build your business franchise for the long term
• Partnership opportunities exist in both arenas
• Availability of local human and financial capital varies significantly from market to market, therefore any partner you work with will have different requirements from you from region to region
• Much of Europe has an unrivalled infrastructure and a welcoming attitude to international businesses
The Enlarged EU
10 countries – 9 languages
New Member States – Linguistic Challenges
Czech Republic Czech
Estonia Estonian
Cyprus
Greek, Turkish are official
languages; English is widely
spoken
Latvia Latvian
Lithuania Lithuanian
Hungary Ungarisch
MaltaMaltese; English is widely
spoken
Poland Polish
Slovenia Slovene
Slovakia
New Opportunities and challenges
• Influx of EU funding
• Increased expenditure on infrastructure
• EU targets create opportunities in
– Environmental Management
– ICT
– HR
– Financial Services
– Health and Safety
– Retail Consumables
• Language issues and complexity of various business cultures
makes local partnering a success imperative
Focus Areas
The environment – packaging, recycling, energy reduction
Focus Areas
Advanced Engineering
Focus Areas
Biochem
Focus Areas
Creative and Media
Focus Areas
Defence
FASHION
Focus Area
Focus Areas
Education and Skills – on and offline
Focus AreasFood and Drink
Health & Safety
Communications
Strategies to enter the EU
Strategies to enter the EU
• Sell direct from home office
• Distributor
• “Partner”
• Joint Venture
• Subsidiary
• Acquisition
Strategies to enter the EU
• Your route in to the market will be
determined by
– The degree of control you require
– The speed of market entry you would like
– The capital available to you
• Which ever route is right for you
business the strategic imperatives for
success remain the same…..
Co
mm
un
ica
tion
s
Pro
du
cts
Re
so
urc
es
Strategy & Business Architecture
Customer Relationship Management
Supply Chain Management
Human Performance
Finance & Performance Management
Technology Research & Innovation
Production
Main industries
Main service lines
EU Market Entry
P1
Seize the
opportunity
of the EU
P3Let achieving
business resultsunite the
organisations
P2Clearly
articulate the benefit toEU
Based partner
P6Openlyaddress
”hot topics”
P8Adapt
as quicklyas you can
Identification of opportunity
is the first step in market entry
P5Value people as your
key resource
P7Manage
the market entryas a project,
then move to the next
9 Principles of
EU
Market Entry
People
are
key
YOU
+
EU
Change
then
move on
P4Engage the
key influencersfrom day one
EU Market Entry Principals
Market
• Understand customer profitability and cost-to-serve
• Articulate the value propositions to customers
• Effective branding, advertising and promotion
• Effectively manage product mix and bundling
• Possess good knowledge of customers (Buyer values)
• Effective channel strategy
• Price to maximize return
Sell – either direct, via partner or own office
• Strategically manage large accounts
• Attract, develop and retain best sales and marketing talent
• Effective sales automation systems
• Develop effective sales plans and calls
• Sales force must have ability to develop effective alliances
(access customer execs)
• Sales force must have ability to change the organization
Serve
• Develop effective customer service systems
• Proactively identify customer problems, communicate
resolution options
• Leverage customer information from the service process
• Prevent customer problems through customer education
• Fairly compensate and reward personnel
• Develop tiered service
• Execute effective customer service
Customer
Equity
- Customer Insight
- Customer Offers
- Customer
Interactions
The European Opportunity
A welcome for International Businesses
Key Considerations entering the EU
• You can sell in to a wide spectrum of
markets
• 4G penetration will increase
significantly over the next 5 – 10 years
• Focus group scores of 75%+ are a
target for new product launches
• The EU does not work at the same
speed everywhere– and some areas
are much slower than others
Key Considerations entering the EU
• If your strategy works and your
products sell in the UK, USA or
elsewhere that may mean little in
Europe
• There are different decision making
cultures from Iceland to Spain or
Scotland to Turkey
• There are different decision making
cultures from industry to industry
Key Considerations entering the EU
• What exactly is the local need?
• Where is your domestic market
in comparison to EU markets,
structure accordingly
• The EU will grow in size and
administration
• Partner or direct?
• Business is people but the
culture varies widely across the
EU
• Allow enough time
• Budget your pre-market entry
investment adequately
Golden Rules for Success in the EU
• Business relationship are based on
personal relationships
The culture varies hugely from one end of the
EU to the Other
Mixing business with social life works – most of
the time
Entertainment; drinking, gifts, golf, football etc.
Personal connections (alumni) and networks
count
• Formal Introductions (business cards)
vary from market to market
• Ensure “they” understand our English
• Logic is not always logical
• Get to know your counterpart and use a
trusted intermediary where you can
• Travel to a plan, not to speculate
Creating your future profits in Europe
• Be local and international
• Select your partners, routes to market and channels with care
• Look forwards and base decisions on future opportunities not historical performance
• Margin and market share varies hugely from region to region and market sector
• If you have the capabilities you will be warmly welcomed
• Research, make your decision fact based
Copernicus - representing our clients
throughout the EU - locally• International Strategic Consultancy
• Working with business owners
• Collaborating with government
agencies
• Creating profitable opportunities for our
private clients
• Supporting our clients locally in each
market
• We do not work for competing clients
• Contributing to the economy
• Creating jobs
• Building futures
How? Because business is local and international
Copernicus Services
12
34
56
Strategic Planning and implementation
1.
Product and service outsourcing3.
Public Procurement Opportunity Identification & Support Services
5.
Cross cultural international management training
7.
International Export Development
2.
Acquisition identification, due diligence and integration
4.
Interim International Key Account Services
6.
7
Copernicus 2020
Representation in the top 50 current global
markets and the next 10 emerging markets
Copernicus
Creating International
Business Opportunities
Copernicus Consulting
114 Courthill House
60 Water Lane
Wilmslow SK9 5AJ
United Kingdom
Phone: +44 161 262 1990
E-mail: [email protected]
Web: www.copernicus-consulting.com
