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In this issue…
Is Your Company Ready to Enter the U.S. Market?
(Part 2 of 3)
Performing an expansion audit of your existing organization will go a long way towards ensuring success outside of whatever you may call your home market. It allows you to scrutinize every component of your organization (product, sales, marketing, technical support, research and development, operations [including manufacturing, IT, finance and legal departments], human resources, customers, competition and your professional image) in preparation for entering any market.
Each department and/or team within your organization will determine the questions and issues to be investigated during their audit process. Sample questions are provided below for each department/team to help you begin the audit process. Sales TeamAmericans are famous for their “buy and try” attitude. The Sales function can be the most difficult to replicate outside of your home market. Each of the target areas outlined needs careful attention at each step of the process. Yet, the good news, as expressed by United States President Calvin Coolidge in the 1920’s, is that “the business of America is business.” At times, it will seem that the possibilities for selling your software are indeed limitless. Harness the potential of even a few of the myriad sales opportunities and techniques, and you can begin to develop the potential of the U.S. market. The essential factor for your success in the U.S. market will be your direct sales force if your company markets software at the enterprise level. If your company develops and sells software at the enterprise level, the essential factor in your success or failure in the U.S. market will be your direct sales force. Develop the exact profile needed for the U.S. sales force and then work with a successful sales recruiter in the United States to hire the people. According to Lori Trippel, former President and CEO of IXOS Software, Inc. in the U.S., “The U.S. sales force will probably have an older profile and more account management experience than that of the home country. It will pay off in the end because this group of people will present an American face to your first accounts. This is critical when you are trying to gain those first reference accounts in the U.S.” [A reference account means that a company is willing to speak with potential customers and to be quoted in press releases with regards to your products and services.]
The best way to find a sales recruiter is through (1) networking with executives from other companies from your local market that have already set up their U.S. operations, and/or (2) accessing the resources of your government’s U.S. consular and/or business development office (if available). U.S. companies are remarkably unconcerned about buying products from a lesser-known foreign company. If your company develops and sells retail business software, the U.S. market will seem extremely competitive. Your best bet is to sell the product on the web and hire a few key salespeople to penetrate strategic U.S. accounts to gain them as references. Almost all companies entering the U.S. are surprised to find that larger U.S. companies are remarkably unconcerned about buying products from a lesser-known foreign company. As long as the product solves a real problem and is backed by a professional organization with good technical support in the U.S., you will find that this holds true. Marketing TeamDon’t forget the translators. Marketing is, perhaps the area of U.S. expansion most likely to conform to your domestic market profile. If you reflect on the history of your business, you will probably find more similarities than differences. For instance, what has been the time correlation between new product introduction and sales response? Or, what ad campaigns or other sales promotions have been most successful? And, what avenues of customer service have been most useful; conversely, what hasn’t worked?
Engage a web-savvy and very aggressive marketing agency in the U.S.
Technical Support TeamPrompt, friendly, efficient service is expected. The key issue to resolve in the area of technical support when expanding into the U.S. is to determine the cost recovery model to be used. In other words, how will your organization recover its technical support costs? If your product is mission-critical to your customers (that is, critical to their ability to make revenue), you may choose to charge for support only. If your product does not fit into this category, then you must include the cost of support in the price of the product. This may seem self-evident, but it should not be overlooked: your staff must be able to provide support in (American) English. In the short term, use the Web to provide answers to frequently asked questions (FAQ). You can provide technical telephone support from your local time zone, as long as extended hours are available. As you plan, keep in mind that almost all companies eventually set up a local support organization in the U.S. to be closer to their customers. Prompt, friendly, efficient service is expected and will be rewarded by customer loyalty and referrals. Research and Development (R&D) and Product Marketing TeamsIf your R&D and Product Marketing Teams aren’t on the same road, fix it now! If your R&D and Product Marketing Teams are already working smoothly together, then expanding into the U.S. will not require many changes in the R&D organization. The more integrated these employees, the easier your transition will be into the U.S. marketplace. However, f the two teams are not working smoothly together, then you and your managers need to identify the impediments and change the process and/or the people. If you do not, it will be difficult to meet U.S. market expectations in the medium- to long-term. Some of your developers should be able to communicate in verbal and written English. Be sure to schedule regular travel time for local developers to visit U.S. customers on a regular basis and/or to attend U.S. training courses and tradeshows. A quirk that may work in your favor: U.S. software buyers are much more forgiving of slipped product schedules than those in markets such as Germany or Japan. However, if your organization can deliver what it commits to, on time, then you will have an advantage over many U.S. competitors. Stay tuned for part three, in which Ray will discuss how to audit Operations. She will also provide guidelines for developing an action plan and recommendations on how to determine if your organization is finally ready to enter the U.S. market. Rebecca Ray has been a pioneer in designing, testing, adapting and marketing software outside of the U.S. for companies such as IBM, Netscape Communications, Symantec and Sun Microsystems. She is the Global Business Editor for the Globalization Insider and can be reached at Rebecca@lisa.org. Editor’s Note: This article has been adapted from Doing Business in the USA: Marketing and Operations Strategies for Success, co-authored by Rebecca Ray and published by Sun Microsystems. |
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