Brovis Lessons Learned - Stanford Universityweb.stanford.edu/group/ree/archives/archive11/la... ·...
Transcript of Brovis Lessons Learned - Stanford Universityweb.stanford.edu/group/ree/archives/archive11/la... ·...
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Brovis Lessons Learned
Created by Tom Kosnik
Fenwick and West Consulting Professor
Stanford Technology Ventures Program
REE Latin America
October 21, 2011
6/8/2012 Brovis Lessons Learned 1
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6/8/2012 2
Agenda
• The Double Chasm Challenge
• International Decisions facing Brovis
• Target Country Market Selection using “CAGE” Model
• Go-To-Market Strategy: Ten Point Go-To-Market
Strategy Checklist
– Whole Product
– Positioning
• Should Brovis Go Global Now – or Wait?
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6/8/2012 Brovis Lessons Learned 3
High Tech companies face a “Double
Chasm” Challenge as they go global
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6/8/2012 Brovis Lessons Learned 4
The Double-Chasm Challenge
• The Market Chasm – based on the early
majority adopters’ perceptions of the
innovation’s risks
• El Cultural Chasm – based on:
– Lack of experience of the companies’ leaders in
each new country’s local culture
– Lack of trust among adopters in each new country
in the “foreign” company and its leaders.
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6/8/2012 Brovis Lessons Learned 5
The Market Chasm
Adapted from: Moore (2002), Crossing the Chasm.
Chasm
Early
Market
Bowling
Alley
Tornado
Main
Street
Total
Assimilation
Techies Visionaries Pragmatists Conservatives Skeptics
Resistance
to Risk
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6/8/2012 Brovis Lessons Learned 6
The Cultural Chasm
Language
Laws
Circles of Influence
Ethics
Religion
Education
Culture
Business-Government
“The Code” to Build Trust
Business Ecosystem
“Foreign”
High-tech
venture
Adopters
in a new country’s
Local culture
Lack of
Experience Lack of Trust
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6/8/2012 7
Agenda
• The Double Chasm Challenge
• International Decisions facing Brovis
• Target Country Market Selection using “CAGE” Model
• Go-To-Market Strategy: Ten Point Go-To-Market
Strategy Checklist
– Whole Product
– Positioning
• Should Brovis Go Global Now – or Wait?
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International Decisions
Facing Brovis…
• Which country to enter next?
• Already in India
• Expanding to ASEAN via ICON Base Partnership
• Where next: Japan, Korea or China?.
• What Go-To-Market Strategy in Each Country?
• Ten Step Checklist
• Whole Product
• Positioning
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6/8/2012 9
Agenda
• The Double Chasm Challenge
• International Decisions facing Brovis
• Target Country Market Selection using “CAGE” Model
• Go-To-Market Strategy: Ten Point Go-To-Market
Strategy Checklist
– Whole Product
– Positioning
• Should Brovis Go Global Now – or Wait?
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How to Decide Which Countries
to Enter using the CAGE Framework
Cultural Distance Administrative
Distance
Geographic
Distance
Economic
Distance
Differences in:
• Language
• Ethnicities
• Religions
• Social Norms
• Absence of
colonial ties
• Absence of
shared monetary
or political
association
• Political hostility
• Government
policies
• Institutional
Weakness
• Physical
remoteness
• Lack of common
border
• Lack of sea or
river access
• Size of country
• Weak Transport/
Communications
links
• Different
Climates
Differences in
cost or quality of:
• Natural resources
• Financial res.
• Human resources
• Infrastructure
• Intermediate
inputs
• Information or
knowledge
Adapted from Ghemawat, Pankaj (2001), “Distance Still Matters,” Harvard Business Review, September
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Compare Japan, Korea, and China
using CAGE. Which Would You
Enter First?
Cultural
Distance
Administrative
Distance
Geographic
Distance
Economic
Distance
Adapted from Ghemawat, Pankaj (2001), “Distance Still Matters,” Harvard Business Review, September
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6/8/2012 12
Agenda
• The Double Chasm Challenge
• International Decisions facing Brovis
• Target Country Market Selection using “CAGE” Model
• Go-To-Market Strategy: Ten Point Go-To-Market
Strategy Checklist
– Whole Product
– Positioning
• Should Brovis Go Global Now – or Wait?
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Ten-Point Go-To-Market Strategy Checklist
1. Target Markets & Customers
2. Compelling Reason to Buy
3. Whole Product
4. Partners and Allies
5. Distribution
6. Pricing
7. Competition
8.Positioning
9.Marketing Communications
10. Next Target Segment
Source of money
To fulfill the compelling
reason to buy
Function of whole product
integration complexity
Reference competitor
in the same category
Next move
Source of demand
Needed for whole product
Function of all other factors
This checklist holds for all stages in the Life Cycle
Relative to reference competitor
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Exercise: What is the whole product
for Brovis’ target customers in India?
Your Core Product
Complementary
Services
Complementary
Products
6/8/2012 14 How might the Whole Product be different
for Japan, Korea, or China?
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6/8/2012 15
Positioning Statement that you must
Validate with Customers
Market
Definition
Value/Compelling
reason to buy
Competitive analysis
Differentiated
position
Opportunity
Need
For (target customer)
Who (statement of the need or opportunity)
The (product name)
Is a (product category)
That (statement of key benefit – the compelling reason to buy)
Unlike (primary competitive advantage)
Our product (statement of
primary differentiation) Tagline
Web site,
collateral
Elevator
Pitch
Corporate
Presentation
Executive
Summary
Source: High-Tech Marketing © 2005, TCG Advisors LLC 6/8/2012 15
Positioning may vary by country and by industry target segment!
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6/8/2012 16
Ejercicio: for Brovis
For (target customer)________________________________________
Who (need )_______________________________________________
__________________________________________________________
The (product name)_________________________________________
Is a (product category)______________________________________
That (compelling reason to buy)_________________________________
____________________________________________________________
Unlike (primary competitors)____________________________________
Our product (statement of primary differentiation)_________________________________________
____________________________________________________________
Source: High-Tech Marketing © 2005, TCG Advisors LLC
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6/8/2012 17
Agenda
• The Double Chasm Challenge
• International Decisions facing Brovis
• Target Country Market Selection using “CAGE” Model
• Go-To-Market Strategy: Ten Point Go-To-Market
Strategy Checklist
– Whole Product
– Positioning
• Should Brovis Go Global Now – or Wait?
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6/8/2012 Brovis Lessons Learned 18
Should Brovis go global – or wait?
Evaluation Criteria
Go Global!
Don’t know
Stay Local!
Market opportunity (Most
target customers are based
outside our country)
Customer need (Our target
customers are global)
Vision (Leaders want to build a
global company)
Core Competence (Leaders
have unique global skills and
networks)
Arbitrage (Leverage
advantages in other countries)*
Strategic positioning
(Preempting competitors)*
Replicability (Gain scale
advantages)*
Diversification (Reduce risks
of downturn in home market)
* Arbitrage, Strategic Positioning, and Replicability are from: Sander, Alison (2001), “Go Global or No? HBR.
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6/8/2012 Brovis Lessons Learned 19
Should Brovis go global – or wait?
Evaluation Criteria
Go Global!
Don’t know
Stay Local!
Market opportunity (Most
target customers are based
outside our country)
X
Customer need (Our target
customers are global) X
Vision (Leaders want to build a
global company) X
Core Competence (Leaders
have unique global skills and
networks)
X
Arbitrage (Leverage
advantages in other countries)* X
Strategic positioning (Preempting competitors)*
X
Replicability (Gain scale
advantages)*
X
Diversification (Reduce risks
of downturn in home market) X
* Arbitrage, Strategic Positioning, and Replicability are from: Sander, Alison (2001), “Go Global or No? HBR.
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Epilogue
• Brovis continued to expand rapidly into India
and Southeast Asia
• It had limited success in penetrating Japan,
China, and Korea
• It has expanded to some countries in Middle
East and Africa
6/8/2012 Brovis Lessons Learned 20
http://www.brovis.com/
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Brovis is Hungry, and
Determined to go global NOW!
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Team Exercise
• Use the “6 Ms” to make decisions about the marketing communications mix for Brovis in the next year.
• Look at the new Web-based marketing tools and media channels on previous slide.
• Which of these tools and media channels should Brovis use to market its products?
• How would your marketing communications campaign be different in different countries?
6/8/2012 22