International Expansion
Open a subsidiary?
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1
Distribution Models
•  Direct
Inside sales
Field sales
•  Indirect
Exclusive distribution
•  Company branded
•  Non branded
Non exclusive distribution
Single tier
Multi tier
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2
Japanese market
Map of Japan is in the public domain.
Source: Wikimedia Commons.
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•  Tough market to
crack
•  Home of Sony,
Matsushita & others
•  Requires localization
•  Specific cultural
requirements
•  Demanding
customers
3
Customer Relationships vary
by market
•  Broadcasting market
unique
•  Mission critical
•  Very demanding
•  Technical expertise
required
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4
Direct
Pros
•  Control
•  Inspection
•  training
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Cons
•  Expensive
•  Little leverage
5
Direct
Field Sales
Image removed due to copyright restrictions.
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•
•
•
•
Good for complex sales
High base salary for reps
Likely to sell high ASP
Uncapped commission
plan
6
Inside sales
•
•
•
•
•
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expensive
Less
Training
required
for lower asp
Good
turnover
High
Transactional
business
7
Opening a subsidiary
•  How should you
price the product?
•  What is the revenue
ramp?
•  Can it be profitable?
•  How long?
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8
Opening a subsidiary
•  Is the subsidiary
strategic?
•  Where do you put
sales reps
•  How do you comp
them?
•  Who do you hire?
Men
women
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9
Which Sales Culture?
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10
Indirect
CITRIX.COM/BECOMEAPARTNER
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11
Indirect
Pros
•  Coverage
•  leverage
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Cons
•  Lack of control
•  Training
•  mindshare
12
What Makes a good partner?
•
•
•
•
•
Focus
Market coverage
Previous experience
Like product
Customer
relationships
•  Technical expertise
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13
How to recruit partners
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14
MIT OpenCourseWare
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15.387 Entrepreneurial Sales
Spring 2015
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