EKLYA - 3 - Evolutions du Marché au Niveau Mondial...
Transcript of EKLYA - 3 - Evolutions du Marché au Niveau Mondial...
Laurent Dorey – [email protected]
The Internationalization Processes
www.add-wise.com -> EKLYA - Evolutions Marchés
M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
Laurent Dorey
November, 25th, 2019
Laurent Dorey – [email protected]
The Internationalization Processes
www.add-wise.com -> EKLYA - Evolutions Marchés
M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
Program:EKLYA-M1
The Internationalization Processes
Internationalization and Network Development
Internationalization of High Growth Startups
Future of Strategic Human Resource Management
Workshop - Practical Case
Internationalization of SMEs Through Clusters
Laurent Dorey – [email protected] -> EKLYA - Evolutions Marchés
M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
Laurent Dorey – [email protected]
The Internationalization Processes
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M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
Recap
There are 3 essential characteristics of internationalization:
Internationalization is universal
Internationalization is heterogeneous
Internationalization is sequential
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The Internationalization Processes
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M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
Recap - Internationalization is Universal
In terms of geographic zones (i.e. country of origin and host country)
In terms of firm size (i.e. small firms and MNCs)
However:
More and more SMBs are entering the international arena thanks to new tech-
nologies
The export rate (export sales/domestic sales) or degree of internationalization
is considered independent of firm size, so international commitment is as
strong for small international firms as for large international firms
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The Internationalization Processes
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M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
Recap - Internationalization is Heterogeneous
In terms of entry modes
In terms of internationalization vectors
Country/market
Market segments
Products/services
In terms of business functions
International sales (i.e. exporting, selling abroad)
International sourcing/procurement (i.e. buying abroad)
International production (i.e. manufacturing abroad)
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The Internationalization Processes
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M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
Recap - Internationalization is Sequential
It is sequential in time
Learning process (i.e. Scandinavian Stages Model of Internationalization)
It is sequential in space
Concentric expansion
Distance
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M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
Laurent Dorey – [email protected]
Internationalization and Network Development
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M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
Factors of Globalisation
Knowledge
Theories
The best one/combination
Partners
MNC
Agent
Subsidiary
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Internationalization and Network Development
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M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
Managerial Outlooks
Entrepreneurial outlook
Calculate risks
Be proactive
Flexibility as asset
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Internationalization and Network Development
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M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
Agent’s Role
Provide
Information, structure/infrastructure
Facilitate
Communication, interpretation, understanding
Enhance
Learning
Help
Building-up image and reputation
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Internationalization and Network Development
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M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
Business Network
The bridge to foreign markets
MNCs as Integrator
MNCs as distributor
• Network
• Logistics
• Combination
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Internationalization and Network Development
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M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
The Uppsala Model of Internationalization
The firm is a learning organization
Internationalization is a series of steps in a learning process (i.e. learning about
international environment and activities)
The greater a firm’s international experience, the greater its commitment to
foreign markets
Knowledge and experience are directly related to the firm’s growing commitment
Internationalization is not spontaneous, it is the gradual result of successive deci-
sions (i.e. evolutionary development of the firm)
Laurent Dorey – [email protected]
Internationalization and Network Development
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M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
The Uppsala Model of Internationalization
Behavioral approach
Stage pattern
Test markets
Minimization of risk
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Internationalization and Network Development
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M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
The Uppsala Model of Internationalization
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Internationalization and Network Development
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M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
The Uppsala Model of Internationalization
Concentric Expansion
Hot countries
Cold countries
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Internationalization and Network Development
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M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
Revised Uppsala Internationalization Model
Multiple Company AnalysisSingle Company Analysis
The Network and
Relationships within itCompany Usually a Producer
Nodes and Threads,
Actors/Activities/ResourcesStages, Decision Making
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Internationalization and Network Development
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M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
Revised Uppsala Internationalization Model
Knowledge
Interaction
Knowledge sharing
Individual & organizational learning
Outperforming competition through knowledge acquisition/use
Trust/Cooperation
Technical
Legal
Economic
Personal/Business ties
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Internationalization and Network Development
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M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
Revised Uppsala Internationalization Model
Commitment
Strengthening or weakening the network
Opportunity development
Domestic and foreign networks
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Internationalization and Network Development
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M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
The Network determines
Geographical market/s
Size of investment
Organizational changes
Access to resources
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Internationalization and Network Development
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M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
Basic Mechanism of Internationalization
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Internationalization and Network Development
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M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
Born Globals
Strategic moves (from inception)
Technology driven (mostly)
25-50% foreign sales within 3 years
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Internationalization and Network Development
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M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
Born Globals vs Process Model
Market
Experience
Extend of internationalization
Strategy
Information
Time to Internationalize
Process Model
Home
Yes
Stepwise penetration
Internationalization is not the
core
Not so important
Slow, time is not important
Born Global Firm
International
No
Many markets
Full internationalization
communications to reach market
Quick (0-3 years)
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Internationalization and Network Development
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M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
Internationalization Theories - Global Marketing
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M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
Laurent Dorey – [email protected]
Internationalization of SMEs Through Clusters
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M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
Why do SMEs Internationalize?
New markets
New suppliers
New knowledge
New money
Being internationally active strongly relates to higher turnover growth
SMEs that are internationally active report higher employment growth
The relationship between internationalisation and innovation is strong
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Internationalization of SMEs Through Clusters
www.add-wise.com -> EKLYA - Evolutions Marchés
M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
SMES’ Main Barriers to Internationalisation
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Internationalization of SMEs Through Clusters
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M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
How to Define Clusters?
Cluster aim to build knowledge bridges between companies and knowledge institu-
tion and to create innovation and growth within a group of companies with shared
interests
Triple helix organisation, i.e. both companies, knowledge institutions and pu-
blic partners/civil society take an active part
Formally established organisation of the cluster have the resources to offer services
and activities to the members
The aim is a long-term, sustainable effort
Minimum number of committed participants from private compa-
nies
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Internationalization of SMEs Through Clusters
www.add-wise.com -> EKLYA - Evolutions Marchés
M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
The Importance of Clusters
Companies in clusters are:
More productive than companies not involved in clusters
More innovative than companies not involved in clusters
More international than the other companies
Laurent Dorey – [email protected]
Internationalization of SMEs Through Clusters
www.add-wise.com -> EKLYA - Evolutions Marchés
M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
Why do Clusters Internationalize?
A global starting point in the companies
Knowledge and research is international
Internationalisation is matching the needs of the cluster
Innovative barriers for the cluster members
International branding
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Internationalization of SMEs Through Clusters
www.add-wise.com -> EKLYA - Evolutions Marchés
M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
What is Internationalization Through Clusters?
It’s more than export!
Innovation projects
SMEs into research
Matchmaking
Innovation Missions
Talent attraction
Laurent Dorey – [email protected]
Internationalization of SMEs Through Clusters
www.add-wise.com -> EKLYA - Evolutions Marchés
M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
What do SMEs Gain From Clusters?
Access to market information/benchmarking/inspiration
General networking and access to new international contacts/cooperation partners
Exposure to new opportunities/new partners in other sectors or application fields
Development of stronger international visibility
Access to new markets
Access to particular knowledge source (i.e. specific expertise)
Access to external infrastructure (e.g. labs, demonstration, testing facilities)
Facilitation/initiation of collaborative research and/or development processes
Laurent Dorey – [email protected]
Internationalization of SMEs Through Clusters
www.add-wise.com -> EKLYA - Evolutions Marchés
M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
What do SMEs Gain From Clusters?
Better understanding of new markets/players
Knowledge sharing and inspiration, identification of new opportunities
Access to new partners and broadened networks
Strengthened presence/visibility in new markets
Initiation of longer-term research and innovation collaboration
Initiation of commercial contract or commercial transaction
Laurent Dorey – [email protected]
Internationalization of SMEs Through Clusters
www.add-wise.com -> EKLYA - Evolutions Marchés
M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
What is Business Cluster?
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Internationalization of SMEs Through Clusters
www.add-wise.com -> EKLYA - Evolutions Marchés
M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
Clusters: powerful engines of economic development in Europe - business planet
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M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
Laurent Dorey – [email protected]
Internationalization of High Growth Startups
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M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
Why Do Startups Launch Internationally?
Sustain or accelerate growth
Geographic expansion as a key component for revenue growth
Diversify revenue
Allows the company to diversify revenues and risk, adding resilience to the
business
Sustain Competitive Advantage
Protects the company’s strategic position
Allows them to cement their technical lead in an increa-
singly competitive global market to create long term va-
lue
Laurent Dorey – [email protected]
Internationalization of High Growth Startups
www.add-wise.com -> EKLYA - Evolutions Marchés
M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
The Risks of Internationalizing - How the Best Deal with Them?
Managing a geographically dispersed organization
Culture, core values, systems, processes wrapped within a blanket of adaptabi-
lity
Different customer requirements and/or sales cycles
Recognising upfront what worked at home may not translate directly and may
require adapting accordingly
Laurent Dorey – [email protected]
Internationalization of High Growth Startups
www.add-wise.com -> EKLYA - Evolutions Marchés
M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
The Risks of Internationalizing - How the Best Deal with Them?
Cost and complexity of localising, selling, marketing and supporting a product for
different countries
Upfront investment & patience - commitment to being successful as important
as execution
Dependence on 3rd parties like resellers
Creating a win-win without compromising quality
Political and economic instability
Disaster recovery planning only gets you so far, the rest
is about being calm but decisive in a crisis
Laurent Dorey – [email protected]
Internationalization of High Growth Startups
www.add-wise.com -> EKLYA - Evolutions Marchés
M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
The 4 Principals for Launching Internationally
Operational readiness before launching 1st international market
1. Repeatable Sales Execution at Home
2. Graduated from selling to early adopters
3. Early International Customers
4. Understanding of local culture
Laurent Dorey – [email protected]
Internationalization of High Growth Startups
www.add-wise.com -> EKLYA - Evolutions Marchés
M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
The 4 Principals for Launching Internationally
Repeatable sales execution at home
Forecastable growth at home
Been through renewal cycles and have established customer success program-
mes
Clarity on pricing structure/model
Live marketing programs by channel that are forecastable from one quarter to
the next
More inbound leads than outbound leads, which translates into a working sales
machine
Stellar domestic growth – typically >100% p.a.
Laurent Dorey – [email protected]
Internationalization of High Growth Startups
www.add-wise.com -> EKLYA - Evolutions Marchés
M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
The 4 Principals for Launching Internationally
Graduated from selling to early adopters
Have ROI use cases from customers both at home and in the new country
• Good ROI use cases also enable more targeted marketing campaigns
Must be able to successfully win proof of concepts
Category leaders are winners - and the best way to lead a category is to create
it
Laurent Dorey – [email protected]
Internationalization of High Growth Startups
www.add-wise.com -> EKLYA - Evolutions Marchés
M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
The 4 Principals for Launching Internationally
Early international customers
Organic inbound leads from a new market
Successfully closed new customers in a new market, or cross-sales to an exis-
ting customer in a new country
Good understanding of how the sales cycle differs from home market
Deep understanding of the customer problem or “product/country fit”
Laurent Dorey – [email protected]
Internationalization of High Growth Startups
www.add-wise.com -> EKLYA - Evolutions Marchés
M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
The 4 Principals for Launching Internationally
Understanding of local culture
When entering a new country one need to be able to learn really fast
Sometimes the buying process is not different, but the reasons for buying are
Finding talent in a new country who are a cultural fit with your organisation is a
major challenge
• Large companies prefer to send their best employees to help establish a
new market
One need to feel like part of the local conversation and not an outsider
Hire for differences, not similarities:
• Needs to have as many cultures and backgrounds as possible
Laurent Dorey – [email protected]
Internationalization of High Growth Startups
www.add-wise.com -> EKLYA - Evolutions Marchés
M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
First Steps to Take in the Internationalization Process
Conduct due diligence and a thorough analysis on a new market
Invest into building market awareness and end customer demand from customers
before opening an office
It is imperative to build reference-able “local” customers rapidly
Laurent Dorey – [email protected]
Internationalization of High Growth Startups
www.add-wise.com -> EKLYA - Evolutions Marchés
M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
First Steps to Take in the Internationalization Process
Ensure to use the same effective marketing campaigns and language used in the
early days of finding your first customers
In a new market, users are not (always) as well educated yet
Focus on getting the right procedures in place including legal entities and structures
as well as tax planning
Laurent Dorey – [email protected]
Internationalization of High Growth Startups
www.add-wise.com -> EKLYA - Evolutions Marchés
M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
Sound Commandments for Launching Internationally
Think like a global company from the start
Develop a product so it can be localised easily
Consider a range of go-to-market strategies before committing to one
See where the market pulls you, don’t force yourself into a new market unless ab-
solutely necessary
Test selling to a new market from your HQ before sending your first employee over
permanently
Laurent Dorey – [email protected]
Internationalization of High Growth Startups
www.add-wise.com -> EKLYA - Evolutions Marchés
M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
Sound Commandments for Launching Internationally
Send a founder or early senior executive to launch your first international office
Integrate your local hires into the company by training them in your company’s HQ
Allow each office to build their own culture while retaining the core pillars of the
company’s culture
Set organizational goals for the international business
Focus on one market at a time and record your learnings
Laurent Dorey – [email protected]
Internationalization of High Growth Startups
www.add-wise.com -> EKLYA - Evolutions Marchés
M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
What is the hardest part of expanding a business internationally?
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M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
Laurent Dorey – [email protected]
Future of Strategic Human Resource Management
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M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
Mega Trends in HRM
Demographic changes
Performance management
Technological changes
Talent management
CSR & sustainability
Laurent Dorey – [email protected]
Future of Strategic Human Resource Management
www.add-wise.com -> EKLYA - Evolutions Marchés
M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
Demographic Change in Age Structure
Healthy, productive, motivated through
Ergonomics
Workplace design
Organizational structure
Assignment of tasks
Provision of adequate trainings and incentives
Decreasing technological affinity
Reduced interest in training
Laurent Dorey – [email protected]
Future of Strategic Human Resource Management
www.add-wise.com -> EKLYA - Evolutions Marchés
M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
Change in Diversity
Substantial commitment of resources
Not viable for every company
Employment of diverse social groups
New management approaches
Establishment of supportive group norms and climate
Discrimination through stereotypes
Knowledge transfer
Distributed knowledge
Climate of mutual trust and respect
Organizational environment of learning and developing
Laurent Dorey – [email protected]
Future of Strategic Human Resource Management
www.add-wise.com -> EKLYA - Evolutions Marchés
M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
Implications for Practice & Research
Increasingly practice age management
Analyze firm’s age structure
Determination of employee needs
Create adequate HRM processes
Integrate different dimensions of workforce diversity
Laurent Dorey – [email protected]
Future of Strategic Human Resource Management
www.add-wise.com -> EKLYA - Evolutions Marchés
M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
Technological Changes
Changes
Organizational lifeTechnology
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Future of Strategic Human Resource Management
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M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
Diversity Management
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M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
Workshop - Practical Case
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M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
Explain and “theorize” the international development of the following companies
Internationalisation strategic steps/milestones?
Changes/adaptation to their business model?
Internationalisation of their Workforce/Management?
…
Work 3 by 3, then Board presentation
UberBlabla car
Carrefour
Beko
Huawei
SamsungLogitech
Spotify
Decathlon
Valeo
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Future of Strategic Human Resource Management
www.add-wise.com -> EKLYA - Evolutions Marchés
M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
Designing For Global Markets
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M1 - MDAI - MA1 - Evolutions du Marché au Niveau Mondial
The end