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Becoming a Global Company – Get Moving!. Learn How to Effectively Research and Target a New Geographic Market Before You Enter. Prepared For:. Presented By:. February 17, 2009. Ducker Worldwide Global Headquarters: 1250 Maplelawn – Troy, MI 48084. 248.644.0086. www.ducker.com. - PowerPoint PPT Presentation
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1Confidential - © 2008 - Ducker Worldwide
ducker.com Transportation * CONSTRUCTION * INDUSTRIAL * materials * FINANCIAL
Ducker Worldwide Global Headquarters: 1250 Maplelawn – Troy, MI 48084. 248.644.0086. www.ducker.com
Becoming a Global Company – Get Moving!
Prepared For: Presented By:
Learn How to Effectively Research and Target a New Geographic Market Before You Enter
February 17, 2009
2Confidential - © 2008 - Ducker Worldwide
ducker.com Transportation * CONSTRUCTION * INDUSTRIAL * materials * FINANCIAL
Ducker Research Goes Global
Ducker EuropeHQ: Paris
1996 2000 20082004
Ducker EuropeExpands into Berlin
Ducker AsiaBangalore India
Ducker AsiaExpands into China
Asia HQ: Shanghai, China
Ducker Research Changes Brand Name
Ducker Worldwide
What Did We Learn in The
Process?
3Confidential - © 2008 - Ducker Worldwide
ducker.com Transportation * CONSTRUCTION * INDUSTRIAL * materials * FINANCIAL
10 Ways to Take Your Business Global*
1. Discover Why Going Global is Important
2. Build Your Foundation
3. Map Out Your Global Journey
4. Develop Sales and Distribution
5. Make it Happen
6. Build Your Business
7. Keep Learning
8. Create Your Future
9. Manifest New Frontiers
10. Reap the Rewards of Global Trade
Source: Laurel Delaney; Work Z
4Confidential - © 2008 - Ducker Worldwide
ducker.com Transportation * CONSTRUCTION * INDUSTRIAL * materials * FINANCIAL
10 Ways to Take Your Business Global
1. Discover Why Going Global is Important
Potential of Overseas Markets
Approximately 10 percent of US businesses export though 95% of the world’s population lives outside the US
Global Customer Base
Multi-national businesses seek partners, suppliers with similar global footprint
Cost Advantage, Technology Advancement
Certain regions provide cost advantages; others bring advanced technology to services, products
5Confidential - © 2008 - Ducker Worldwide
ducker.com Transportation * CONSTRUCTION * INDUSTRIAL * materials * FINANCIAL
10 Ways to Take Your Business Global
2. Build Your Foundation
A New Mind-Style is Required
Global business requires an open mind and persistent attitude
Define Vision and Objectives for Global Strategy
Articulate your business vision including objectives for global expansion
Begin Planning Your Road Map
Establish plan for studying global markets, assessing opportunities and making “Go/No Go” decisions
6Confidential - © 2008 - Ducker Worldwide
ducker.com Transportation * CONSTRUCTION * INDUSTRIAL * materials * FINANCIAL
10 Ways to Take Your Business Global
3. Map Out Your Global Journey
Execute the Plan
Explore your territory
Conduct market research
Choose a market
Segment your product and market
Keep yourself on track
Finalize the implementation strategy
Ensure your product or, service stands on its own merits globally
Define roles and responsibilities
Determine necessity for local presence
7Confidential - © 2008 - Ducker Worldwide
ducker.com Transportation * CONSTRUCTION * INDUSTRIAL * materials * FINANCIAL
India likely to be among the top 5 economies by 2025
Source: McKinsey & Co.
8Confidential - © 2008 - Ducker Worldwide
ducker.com Transportation * CONSTRUCTION * INDUSTRIAL * materials * FINANCIAL
Indian middle class expansion will create huge consumption led growth
Source: McKinsey & Co.
9Confidential - © 2008 - Ducker Worldwide
ducker.com Transportation * CONSTRUCTION * INDUSTRIAL * materials * FINANCIAL
Significant demand elasticity
Source: McKinsey & Co.
10Confidential - © 2008 - Ducker Worldwide
ducker.com Transportation * CONSTRUCTION * INDUSTRIAL * materials * FINANCIAL
19.7 19.1 19.2 21.0
16.7 16.6 17.0 17.0
5.8 5.4 5.5 5.4
11.0 18.2 22.0 24.00.7
1.73.0
4.7
2.1
8.1
11.2
14.5
56.0
69.1
77.9
86.6
2001 2007 2010e 2015e
As a result, China and India are becoming major automotive markets
Global Auto Market Growth
Source: PWC, Global Insight, Ducker Analysis
ROW 7 4
Japan -1 0
Western Europe 0 0
North America -1 1
India 16 14
China 25 8
CAGR (%)
2001-2007 2007-2015e
(Millions of units sold)
11Confidential - © 2008 - Ducker Worldwide
ducker.com Transportation * CONSTRUCTION * INDUSTRIAL * materials * FINANCIAL
Translated to the addressable market for auto components = ~ $700B by 2015
Source: McKinsey & Co.
12Confidential - © 2008 - Ducker Worldwide
ducker.com Transportation * CONSTRUCTION * INDUSTRIAL * materials * FINANCIAL
Source: ACMA, McKinsey, Ducker Analysis
Indian Auto components industry is successfully managing high growth
3.1 3.3 3.9 4 4.5 5.4 6.78.7
10.5
18.5
40
0
5
10
15
20
25
30
35
40
45
1997 1998 1999 2000 2001 2002 2003 2004 2005 … 2009 … 2014
1997-2000 9% CAGR
2000-2005 20% CAGR
2005-2014 17% CAGR
$ billion
Automotive Components Growth
13Confidential - © 2008 - Ducker Worldwide
ducker.com Transportation * CONSTRUCTION * INDUSTRIAL * materials * FINANCIAL
China and India still have small share of US auto component imports
U.S. Imports of Automotive Components
Source: U.S. Commerce Dept., Ducker Analysis
-
10
20
30
40
50
60
70
80
90
100
110
Wor
ld
Mex
ico
Can
ada
Japa
n
Chi
na
Ger
man
y
Kor
ea
Tai
wan
Bra
zil
Fra
nce
UK
Tha
iland
Italy
Indi
a
Bill
ion
s
1995
2007
14Confidential - © 2008 - Ducker Worldwide
ducker.com Transportation * CONSTRUCTION * INDUSTRIAL * materials * FINANCIAL
Understanding regional opportunities / differences is a key success factor
Source: ACMA, McKinsey, Ducker Analysis
$267
$386
$612
$800
1980 1990 2000 2005
$189
$264
$312
$400
1980 1990 2000 2005
Wealthiest States,
Real GDP/Capita, $
Poorest States,
Real GDP/Capita, $
Delhi
Chennai
Bombay, Pune
Automotive Hubs
Source: Ducker Analysis
15Confidential - © 2008 - Ducker Worldwide
ducker.com Transportation * CONSTRUCTION * INDUSTRIAL * materials * FINANCIAL
Several hiccups ahead - Infrastructure (roads, air/sea ports, power) is still a bottleneck, but India ranked favorably as a country hospitable to investors
Source: Heritage foundation, Forbes, World Bank, McKinsey, World Economic Forum, Ducker Analysis
Problem factors for doing business in India Countries Most Hospitable to Investors (score)
3%
5%
5%
5%
15%
16%
22%
25%
Lack of access to finance
Poor work ethic
Policy instability
Tax regulations
Restrictive labour regulations
Corruption
Inefficient bureaucracy
Inadequate infrastructure92
91
89
88
86
84
84
83
83
82
72
69
66
60
58
44
41
21
USA
Canada
Japan
Denmark
Norw ay
Hong Kond
Sw eden
UK
Australia
Singapore
Taiw an
S. Korea
Malaysia
Thailand
India
China
Philippines
Vietnam
DevelopingCountries
22 - 40% of political
candidates face criminal charges in
India
16Confidential - © 2008 - Ducker Worldwide
ducker.com Transportation * CONSTRUCTION * INDUSTRIAL * materials * FINANCIAL
10 Ways to Take Your Business Global
4. Develop Sales and Distribution
Position Product to Achieve Success
Price your product/service Promote your product/service Position your product/service Place your product/service (channels)
Initiate, Cultivate and Maintain Customer Relationships
Leverage trade networking programs: Trade shows, trade missions, business networking groups, advertising
Define Cross-Border Customers
Multi-national customers want partners, suppliers with premium and consistent global quality and service
17Confidential - © 2008 - Ducker Worldwide
ducker.com Transportation * CONSTRUCTION * INDUSTRIAL * materials * FINANCIAL
10 Ways to Take Your Business Global
5. Make It Happen
Successfully Deliver Products and Services
Pick a payment method Pack it up Put transportation to work Plan to document everything
Measure Success, Refine Strategy
Actively measure performance and refine strategy as necessary
Speed and action are critical to success
Evaluate Company Structure
Continue to assess necessity for local presence; sales and manufacturing
18Confidential - © 2008 - Ducker Worldwide
ducker.com Transportation * CONSTRUCTION * INDUSTRIAL * materials * FINANCIAL
10 Ways to Take Your Business Global
6. Build Your Business
Define Roles and Responsibilities
Define goals and objectives for business leaders and team charged with global expansion
Set an Unprecedented Standard of Professionalism
Service your new customers – above and beyond
Customer retention is primary goal
Build a Team Dedicated to Global Business
Serving global and foreign customers requires expanded skills
19Confidential - © 2008 - Ducker Worldwide
ducker.com Transportation * CONSTRUCTION * INDUSTRIAL * materials * FINANCIAL
10 Ways to Take Your Business Global
7. Keep Learning
Embrace the Culture
On-the-job training will enhance the experience Sensitivity and respect for overseas customers
critical to success Expand your cultural consciousness
Stay Alert to Industry and Geographic Trends
As emerging markets involve to established markets, customers’ needs change and so should your products and services
Innovation
Innovation of products and services is necessary for sustainability
20Confidential - © 2008 - Ducker Worldwide
ducker.com Transportation * CONSTRUCTION * INDUSTRIAL * materials * FINANCIAL
10 Ways to Take Your Business Global
8. Create Your Future
Build Your Marketing Engine
Expand your Internet reach Evaluate advertising partners Secure sales structure
Build Your Sales Engine
Expand sales team with local representatives, employees
Build Your National Presence
Determine and assess the need for local presence (manufacturing, sales and marketing)
21Confidential - © 2008 - Ducker Worldwide
ducker.com Transportation * CONSTRUCTION * INDUSTRIAL * materials * FINANCIAL
10 Ways to Take Your Business Global
9. Manifest New Frontiers
Explore New Overseas Markets
Pursue similar process for new frontiers Research where to go next Evaluate alliances, partnerships
Understand the Global Customer Base
Go where your customers want you to go
Expand Products and Services to Meet New Markets
Tailor product and service to new market needs without compromising core competencies
22Confidential - © 2008 - Ducker Worldwide
ducker.com Transportation * CONSTRUCTION * INDUSTRIAL * materials * FINANCIAL
10 Ways to Take Your Business Global
10. Reap the Rewards of Global Trade
Profitable Growth
Increased Shareholder Value
Technology Advancement
Cultural Understanding
Adventure!!!