T HE Y ORK G ROUP

1. THE YORK GROUP We make going global easier

2. Little Things Can Mean A Lot

3. Forces Driving Globalization Emerging Markets Market Transparency Investor Requirement Geographic Diversity

4. Anyone Can Go Global • Going global is not a problem • The real challenge is to do it profitably.

5. The Start of “International” Thinking A guy from Korea we met at a trade show wants to be our distributor there. They speak English, don’t they? Always wanted to go to Paris – why not set up our European HQ there? Canada is just another state… so, we could sell from here! China is huge. Let’s set-up an office in Beijing We just sold a big license to Ford, and they want us to support an installation in Brazil You know it’s summer there during Christmas!! My cousin Vinny lives in Australia and knows people in the computer industry

6. Going Global Market Entry Strategy

7. Market Entry Options Domestic Company Direct Indirect ? Selling from Home OEM Subsidiaries Market Partners Resellers International End User

8. Direct vs. Indirect

9. Two Basic Channel Models Either

10. Why Don’t Resellers Sell? • Portfolio mentality • A lot of “nice to haves” • Strategic product inertia • 2 products keep the company alive • Internal business processes • Must happen quickly – or inertia takes over • The sales process must be influenced • Lead generation is the key • Salespeople take the path of least resistance • Agree and monitor milestones • Slipstream into the “flow” by taking small steps

11. Distance Profits Trust Distance and Profits

12. Product Evaluation Letter of Intent Initial Contact Marketing Plan Follow-up Final Contract Schedule Training Manage the Prospect Pipeline Recruitment Process Partner Application Identify Potential Partners

13. Going Global Market Selection

14. Europe Today

15. A Single Europe? HEAVEN HELL • French cooks • British police • German engineers • Swiss organizers • Italian lovers • British cooks • German police • French engineers • Italian organizers • Swiss lovers

16. Ease of Market Entry

17. Japan • Keiretsus • Understanding • Patience • Implementation • Drinking

18. Korea • Indirect market • Often overlooked, despite its size • Cell phones, broadband and gaming • Structural instability, political and economical • North Korea a real wild card

19. Why China?

20. Challenges in China • Not a developed market for many products • Piracy and counterfeiting • Immature distribution systems • Lack of local management talent

21. India • 2nd largest emerging nation in world • 3rd fastest growing economy in the world • 3rd largest GDP in Asia • 4th largest market in terms of purchasing power (a middle class market of 300 million) • TV audience of 400 million people • Service sector contributes 45% of GDP

22. Sunrise Sectors • Telecommunications : USD 37 billion • Retail : growth rate of 37% p.a • Health Care • Entertainment : largest film industry in the world • Banking and finance • Insurance : only 20% insured • Biotechnology : next wave

23. India Market Entry - Challenges • Infrastructure hassles (transportation, power outages, low telephone penetration) • Indian bureaucracy (inefficient & sometimes corrupt) • Conservative mindset • Diverse market (16 official languages, 6 major religions, ethnic diversity) • Piracy

24. Summary - Keys to Success • Market intelligence and data • Know what you are getting into before going • Plan for 2x as much time • Budget for 4x as much money • Hire locally – the American mindset is different • Foreign managers are just that… foreign • You’re not from around here… are you? • Look “international” – product and marketing • Simple things… like having a “.eu” • Partners and alliances

25. THE YORK GROUP Thank you! Any questions?