fitt webinar - market entry

Global Business Essentials: (Part 2 of 3):Global Business Essentials: (Part 2 of 3):

Market Entry Market Entry Collaboration: Powering SME’sCollaboration: Powering SME’s

© 2010 Copyright FITTFor PERSONAL use only.

Your Panel TodayYour Panel Today

Mr. Malaket is an internationally recognized expert in trade finance, co-author of two FITTskills textbooks, and member of the Trade Finance Experts Panels at the World Bank and the EBRD. Alexander has advised blue-chip public and private sector clients, and delivered training seminars in Asia, Europe and the Middle East, in addition to undertaking trade policy & capacity analysis in Africa, related to ACP/EU trade negotiations.He is a frequent feature writer for leading industry publications, from London to Hong Kong and Bahrain.A.R. Malaket, CITP, President,

OPUS Advisory Services International Inc.

Mr. Gnaedinger is a Project Management Professional (PMP) and Certified International Trade Professional (CITP), and is currently the Director of International Trade Resources for FITT - one of the world's leading providers of international trade training.

As part of his current position, Rob's main focus has been on planning and overseeing the implementation of an internal management system for FITT's Body of Knowledge in international trade.

PHOTO

Rob Gnaedinger – PMP, CITPDirector,

International Trade ResourcesFITT

© 2010 Copyright FITT. For PERSONAL use only.

FITT: FITT: The Professional Path to Global The Professional Path to Global MarketsMarkets

• A Canadian, non-profit organization established by industry and government

• World-class programs including Going Global Seminar Series & FITTskills courses leading to CITP/FIBP Professional Designation

• Close to 900 members in Canada and internationally• 400+ CITP’s in leadership positions in government,

corporate and entrepreneurial contexts• Annual Conference attended by the elite of the

international trade community


FITT: Related ResourcesFITT: Related Resources

FITTskills – International Market Entry Strategies

Going Global – An Introduction to International Trade Research

CITP Competency Profile


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Webinar OutlineWebinar Outline

From Preparation to Action Planning Collaboration Virtual Market Entry Entry-by-Network Getting There Then What? Resources Questions


From Preparation to ActionFrom Preparation to Action

• This is where all the research and preparation links to action

• Often the first significant financial outlay• Frequently the first true test of management

commitment• Can shape the future of international

ventures (embraced or avoided) for years



• Research & preparation is critical• Partnerships & collaboration are powerful• Web-based tools are invaluable

…but eventually, you will be best served by GETTING THERE and seeing the market first-hand



• International activities are expensive• If you must debate the price of an airline ticket and a

few nights’ hotel, PLEASE verify your business case• At the very least, check the projected upside on the

opportunity• If the cost of travel looks significant, the cost of

resolving a dispute, product issue or legal matter overseas will look astronomical


PlanningPlanning

What is the best Market Entry Option?

• Agent• Distributor• Licensing• Franchising• Trading House• Export Management Company• Joint Venture• Direct Entry• Other?

For pro’s & cons of each, please see FITTskills or Going Global Texts…


CollaborationCollaboration

• Key message today is the value of collaboration

• This approach is a form of leverage for SME’s

• Collaboration can be with a locally-based partner, and/or with an in-market contact

• Fundamentally, the collaboration MUST support or facilitate the intended market entry


CollaborationCollaboration• Be prepared to reciprocate!• Do NOT underestimate the value you can bring to an

international collaboration• Canada still enjoys great profile and credibility

internationally. Leverage the positive profile of your home country

• In addition to accessing this market, Canada is popular as an access/entry point to NAFTA. Is your home market a local hub?


““Entry” Before You ArriveEntry” Before You Arrive• There is a lot that can be done to prepare

for, and initiate Market Entry from home• Credible information sources, untold number

of “open doors” • Actual and virtual networks

• EXAMPLE: Canada: one of the most powerful under-leveraged brands in the international markets!

• This is true even in some of the toughest markets in the world

• Hong Kong, Australia and others have well-regarded and compelling international brands and presence


Virtual Market EntryVirtual Market Entry

Leverage (carefully!) virtual sources and contacts for insights

and recommendations

Get to know your diplomats and commercial officers – FAST!

Canadian Trade Commissioner Service:

Use the Virtual Trade Commissioner

http://www.tradecommissioner.gc.ca/eng/virtual-trade-commissioner.jsp

Forget the nonsense about entrepreneurs vs. bureaucrats: Canada’s TCS Team is VERY good, as are others!


Entry-by-NetworkEntry-by-Network

• It is much easier to identify/arrange introduction to an in-market contact than most believe

• Check collective networks: company/close associates

• Leverage chambers of commerce, industry associations, world trade centres

• Take advantage of matching/introduction services offered by embassies, private sector sources, industry associations…

• Join bilateral chambers of commerce


Select Market

Market Entry & Market Entry & CollaborationCollaboration

1

Research2

Virtual Entry3

Entry-by-Network

4

Identify CollaborationOpportunities

andSources

Select L/TEntry Option

5

GET THERE!


It CAN be Done…It CAN be Done…This is the home of 23-year-old MetalCraft Marine Inc., and business is booming. But the Kingston-based company's good fortune could have capsized if it hadn't made a dramatic shift in marketing strategy. In the summer of 2007, U.S. business journalists began reporting on the subprime mortgage crisis and a growing crisis in the financial sector.

Bob Clark, MetalCraft’s contracts manager, set out to learn more about the potential trouble ahead. At the time, 95 per cent of the company’s revenue came from selling high-speed patrol and search-and-rescue craft to U.S. regional and federal governments: MetalCraft’s continued prosperity depended on a strong U.S. economy.

“When I found out what it was, I realized it could have a domino effect—a house of cards collapsing—and we immediately started looking for business outside the U.S.,” he says.

Within weeks, MetalCraft shifted much of its sales and marketing budget overseas. It began to focus on Asia, the Middle East, and Central and South America.

http://www.theglobeandmail.com/report-on-business/your-business/grow/expanding-the-business/selling-outside-the-hobbled-us-market/article1495275/


http://www.metalcraftmarine.com/

http://www.theglobeandmail.com/report-on-business/your-business/grow/%0Bexpanding-the-business/selling-outside-the-hobbled-us-market/article1495275/

But Remember…But Remember…

• Think beyond the first shipment• Manage beyond the first completed transaction• Plan beyond the first client/supplier relationship• Too many international ventures stagnate even after

a first success!• Focus on momentum, growth and sustainability• Successful market entry is an accomplishment, but

only a first step


In the end…In the end…


ResourcesResources

• FITT Resources: http://www.fitt.ca/resources.htm

• DFAIT: Trade Commissioner Service http://www.tradecommissioner.gc.ca

• Kroll Market Entry Serviceshttp://www.kroll.com/services/ifai/market_entry/

• World Trade Centres Association (Incl. Trade Opportunities Database)http://www.wtca.org


Questions?Feedback?

Rob Gnaedinger – PMP, CITPFITT

[email protected]: +1 613 230-3553 ext. 110

Alexander R. Malaket, CITP, PresidentOPUS Advisory Services International Inc.

[email protected]: +1 647 680-6787www.opus-advisory.com www.opus-seminars.com


fitt webinar - market entry

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