Technology vendors are going global — looking for new markets to make up for downturns in more traditional markets — and rightly so. A recent Forrester survey found that more than twice as many IT decision-makers in emerging markets compared with more mature markets thought that 2009 was a good year for their industry, and that optimism has translated into IT budgets. When asked about IT budgets, 20% or more of IT decision-makers in Brazil, China, and India expected increases in IT spending compared with only 11% in the US.
For many vendors, identifying the specific opportunities is not so straight forward. Which countries show most promise — and for whom? Brazil, Russia, India and China — the BRIC countries — often top vendors’ target lists, with their large populations, growing GDP, and dynamic markets. Vendors have different priorities depending on their own goals and objectives in expansion. And, specific market characteristics, local catalysts, and local business concerns and priorities that drive technology adoption make these calculations more complex.
This presentation reviews various rationales for expanding globally and identifies some of the lessons learned by vendors. We review best practices and discuss a methodology for identifying the appropriate models and data to best make market entry decisions.
- Tech vendors look for new opportunities.
- But, opportunity isn't always obvious.
- Market opportunity assessment
- Strategic models
- Data demands: macro (country parameters), micro (market sizing and competition), metro (city and regional data, within a country)
- Processes and frequency
Vendors mentioned: Atos Origin, Cisco Systems, Comarch, FatWire, FUJITSU, HP, Kaspersky Labs, LinkedIn, Research In Motion (RIM), and Verizon