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Secrets of Success for Entry into U.S. Markets. Don Spalinger Southampton Photonics, Inc. International Business - Constantly Battling. Geography. Time. SPI Conception UK Center of Excellence to Multi-National Business. Optoelectronic Research Center (ORC) Located in Southampton, England
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Secrets of Success for Entry into U.S. Markets Don Spalinger Southampton Photonics, Inc.
International Business - Constantly Battling Geography Time
SPI ConceptionUK Center of Excellence to Multi-National Business • Optoelectronic Research Center (ORC) • Located in Southampton, England • World renown technology development • Unfocused • Very limited success at commercialization • Commercialize fiber based technology • Early 2000 – Focused on fiber optic telecom market • Growing very rapidly • US dominated • Developed a business plan
SPI CreationCreate a Company • Incorporated in the United States • Southampton Photonics, Inc., a Delaware corporation • U.S. laws vary by state • Raised $55 Million in Venture Capital • Primarily Silicon Valley Venture capitalists • Strategic UK investor • Hired Key Executives in US • Marketing & sales • Finance & accounting • Application engineering • Hired Aggressive & Experience Engineers in UK • Productization • Initial manufacturing
SPI Goes to Market • Focused on Largest & Most Influential U.S. Customers • Developed relationships with new system development • Design-in of SPI components • “Placed Bets” on Very Limited Number of Small Innovative Companies • Help SPI develop our technology • No significant revenues resulted • Provided later contacts and credibility
SPI Rises after Market Crash • Fiber Optic Telecom Market Crashed • SPI Reassessed It Technology Base • Repositioned Company • High power fiber laser company • Industrial, aerospace, and military focused • Secured Large Development Contract • DARPA (US Government) • Leverage on US corporate base • OEM Contracts • Spectra Physics – announced • Other in the works • Development Contracts • Expand technology base • Build credibility
Secrets of Success - People • Unique work personality • Independence • Teamwork • International experience
Secrets of Success – Time and Geography Management • Time Shifts • Early mornings • Late nights • Working in Multiple Locations • Conference calls – must be effective • Get together frequently • Voice mail and e-mail – different uses
Secrets of Success –Key Strategic Issues • Go-to-Market Model • Transaction driven • Relationship driven • Distribution Strategy • Distributors – leverage others contacts • Direct – access to decision makers • Differentiation
Secrets of Success –U.S. Base of Operations • Silicon Valley • Highest concentration of tech firms • Highest concentration of experience executives • Highest concentration of venture capitalists • International environment • Elsewhere in United States-Particular Market Focus • New York – financial industry • Detroit – autos • Washington DC – Government • Houston – oil
Don Spalinger don.spalinger@spioptics.com 408-866-0472