This issue of s.h.a.r.c. includes interviews with three seasoned global business executives, who share the insights on how to achieve business success in the US market.
Roger LaSalle – A professional engineer who has spent a life time with new products, innovation and invention. Indeed, you may have seen him on the ABC New Inventors TV program where in 2004 he was a regular panelist.
Roger La Salle is a professional engineer who has spent a life time with new products, innovation and invention. Indeed, you may have seen him on the ABC New Inventors TV program where in 2004 he was a regular panelist.
He is a Director of a number of local and overseas companies and holds the Chair of Innovation and Visiting Professor status at the prestigious Queens University in Belfast .
Roger has several significant patents to his credits and has founded a number of successful businesses. Presently he is actively involved in three new businesses start ups, with one of these located in China .
Roger is the au thor of several books, and suggests he is probably the only person to have published a book on a structured approach to finding business opportunities.
He is the creator of the “Matrix Thinking” technique.
What do you regard as the key factors for any business to succeed in the global business market?
Answer: Having a unique product or service that clearly delivers value to all in the value chain. “Me too” products are very hard to succeed with.
It is also essential to be committed to export and do understand all of the issues of the export market. Too often, exporters think the drivers of the overseas market are the same as the local market, this is not always the case. It is essential to take time to understand the local market and the value chain.
How do you/your company help companies to achieve business success offshore?
Answer: I work with companies wishing to expert in a number of ways.
How can companies turn their strategic intentions into global business outcomes?
Answer: Proper planning and understanding of the target market is essential. I cannot over state this.
Too often people seem to think that just because a product sells well locally then naturally everybody will want it overseas.
Nothing could be further from the truth.
Gaining a total understanding the target market is essential. But I must say no amount of "theoretical" research will replace a trip to the market to try and make a sale, to start to learn of some of the barriers, and there will be many, most of them unexpected.
What are the pros and cons of establishing direct and indirect business channels in different parts of the world?
Answer: Establishing a direct sales channel in other countries is a terrific opportunity to build a global brand, by having the same name company all over, but the costs are significantly more and the risks higher than with an indirect model because you do not have an existing local identity from which to leverage.
A company coming to the Australian market with products sold under a well known locally accepted brand will find it much easier than trying to start from scratch.
What operational factors must a company consider when attempting to expand offshore?
Answer: This depends on the expansion model that is planned. However, I think it is essential to have a " street smart" person assigned totally to the job and do not underestimate the time and cost to win export markets.
How important is it for a company to stay innovative in a globally competitive environment?
Answer: Global competition and information spread is so rapid today that if a company is not constantly looking to innovate and find new opportunities and improve itself, it will go by the way side very quickly.
How different/difficult is it to negotiate transactions in the US and Europe , as opposed to Australia ?
Answer: On the surface you would think that if you offer an overseas company or purchaser something that will clearly enhance their life then it should be a simple matter to achieve export success. Unfortunately, this is not the case, considerable barriers to export success are often unstated and invisible.
The "not invented here” syndrome is alive and well in the USA .
In England there is quite some resistance in some sectors of Australia (the "Colonies") telling the "mother country" how to do things better. In both of the above case, local branding is often the best solution.
In other muskets, for example, China , made in Australia for certain sectors has a great advantage, it depends to some extent on what sector you are targeting.
For example, sporting goods, foods and method from Australia are well respected because we are so good at sport on a per capita basis.
There is no simple answer to this question it depends on the target market, the products and the type of representation.
How can companies identify their competitive advantage(s)?
Answer: Obviously by looking at the competitive products in the target country and comparing price and, function.
BUT, do not think that simply because you win on those two points you are "in". It is unfortunately not that simple.
It is essential to gain a total "understanding" of the target, not just a superficial knowledge. This is one area in which a knowledgeable and motivated in-country agent or representative can add real value.
What general advice would you give to an Australian company that is entering the US market for the first time?
Answer: Visit the USA first to get some local experience.
Find good USA connections, and perhaps become a member of a chamber of commerce.
Speak with Austrade and the State Governments in Australia and see what local assistance and connection they can provide.
Do not underestimate the magnitude of the task.
Thank you, Roger, for your time.