How to select international strtegic markets for my business 01

Barcelona Activa Empresa

18/05/2012 1 © T.Desuyo

Barcelona Activa Empresa

Activitat cofinançada per:

How to select international strategic markets for my business?

Vista Print case Theresa Desuyo

Founder, Balena Partners

www.balenapartners.com

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Global player, local business

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“Internationalisation is a slow, step by step process whereby a company increasingly commits itself globally. It employs people from different nationalities, and learns how to use an increasingly wider range of foreign sourced or foreign located resources (technology, services, funds, organisational methods,...).

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SIXTH PHASE:

THE TRANSNATIONAL CORPORATION.

• According to Bartlett and Goshal (Managing Across Borders, Harvard Business School Press, 1989), “... in the transnational view, the national subsidiaries become strategic partners whose knowledge and capabilities are vital to the corporation’s ability to maintain a long-term competitive advantage”.

• The ideal organizational characteristics of the transnational corporation would be:

– Dispersed, interdependent and specialised assets and capabilities. – Differentiated contributions by national units to integrate worldwide

operations. – Knowledge developed jointly and shared worldwide.

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International market

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Headquarters and manufacturing- Netherlands

Global Strategy- France

HR- Boston

Marketing and Sales- Barcelona

Advanced processes & Operations- Switzerland

Customer service – Jamaica, Tunisia, Germany

Manufacturing and production- Canada

Marketing and Manufacturing- Australia

Transnational organization

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Vistaprint: Vision

VistaPrint Vision

• Make it easy for small businesses to get great looking design, print and marketing services at superior prices.

Guiding Principle

• Develop “jaw dropping” customer value propositions -Great quality at superior prices

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2009

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Today

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NASDAQ: VPRT Success metrics

• Recent Market Price (Feb 29) $40.35

• 52-Week Range $23.89 - $56.25

• Shares Outstanding 36.9 million

• Market Capitalization $1.5 billion

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Vistaprint: Global Player

• Major Product & Service Lines (sell in 20 countries) Business cards, postcards, brochures, desk calendars, folders,

address labels, rubber stamps, notepads, holiday cards, customized logos, mailing services, websites, signage, promotional products

• Manufacturing Facilities: Windsor (Canada) & Venlo

(Netherlands) • Customer Support Operations: Montego Bay, Jamaica • U.S. Operations: Lexington, Massachusetts • European Marketing: Barcelona, Spain

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Business model

Disruptive Business Model

VistaPrint has brought long-run, low-cost economics to short-run production jobs for the small business marketing market, a market opportunity of over $25 billion.

VistaPrint Success Strategy

• Deploy automated processes throughout the value chain

• “Productize”/”standardize” custom products and services

• Sell products at low quantities per order but market and produce in standardized, high volume processes

• Be the low cost producer and keep getting lower

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Market incentives:

How can you give something for free?

Gratis!!

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Free is not entirely free.

• Charging for shipping and delivery – order

• Cross selling return labels

• Upselling matching content (business cards design & other products with design)

• From free to purchase: 3 times increase in sale with cross & upselling techniques

• Impulse selling & repetition

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Strategic differentiators

1. Free with sales. Business generatos at launch

2. Triangle: Marketing/Technology/Production

- Marketing oriented

- Technological platform adapted to consumer behavior (multi-variate testing)

- “Low-cost” and scalable operations

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A. Market-oriented

• Impulse purchases lead to increase spend

• Clear positioning

• Cross-selling and upsellin

• Client database and cards

• Easy-to-use, DIY and dynamic publishing

• Low ticket price item, cheap and high user engagement

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B. Low cost operations

• Detected opportunity in the automization of a traditionally artesanl approach to printing (Gutenberg)

• Decreased the process from 10 steps to 5

• 250 cards produced in 14,2 seconds

• Grouping / Ganging production generates increased volume of highly standardized products

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C. Technology

• Patents: – operations software

– Automated designs free of the need to know inDesign or Quark

• Payment systems

• Dynamic publishing

• Multivariate testing

• Client database and behavioral targeting to up-sell and cross-sell

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Barriers to Entry

• The triangle (markeing, tecnology & operations)

• High daily order volume enables significant scale and cost advantages

• Early mover & growing brand awareness

• Complex software and 16 US patents granted

• Integrated manufacturing systems and substantial investment

• Internet direct marketing expertise and systems

• International reach

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Summary

• Barriers to entry

• Scalability

• Locate each department strategically across the globe

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Thank you for your attention!

Theresa Desuyo http://es.linkedin.com/in/theresadesuyo

www.balenapartners.com