Avoiding invasive tactics when conquering markets
Fernando Ferrer. BS, MBASeptember 29, 2012
New York City-Microsoft Building
Avoiding invasive tactics when conquering markets
AbstractEntering into and succeeding in Global, Latin-American and Emerging markets demands not only a deep analysis but real international experience, a wide range of skills, and culture sensitivity. This presentation outlines the global perspectives of the organizations and their leaders, tackling then business in Latin America and in the life science market.
Fernando Ferrer. Multinational Partnerships 2
from Domestic … to Global business
Domestic
International
MultinationalGlobal
3Fernando Ferrer. Multinational Partnerships
Globalization is a continuous process of worldwide interconnections
A global business strategy should be doing everything the same everywhere
What works in one country,
fails in another. Because national
differences still matter.
4Fernando Ferrer. Multinational Partnerships
if national differences still matter, What can a Global firm do?
Think globally
Embrace diversity Decentralize
Set few standardized
polices
Create links around the processes
Manage tradition and
change
5Fernando Ferrer. Multinational Partnerships
Diversity of experience
Skills to build successful partnerships
Cultural sensitivity and awareness to get the message across
…and a Global leader?
6Fernando Ferrer. Multinational Partnerships
Heading to Latin America
understand the environment from different perspectives
Global
Country
Industry
Internal
8Fernando Ferrer. Multinational Partnerships
Latin American Alliances
9
CELAC - Comunidad de Estados Latinoamericanos y Caribeños
Mercosur - Mercado Común del Sur
CAN - Comunidad Andina de Naciones
SICA / SIECA - Sistema de la Integración Centroamericana
Caricom - Comunidad del Caribe
ALBA - Alianza Bolivariana para los pueblos de nuestra America
OEA - Organización de los Estados Americanos
NAFTA - North American Free Trade Agreement
Bilateral free trade agreements with other Nations and Economic Alliances
Fernando Ferrer. Multinational Partnerships
similar hurdles faced in established markets …
…but they need to be addressed with Fresh Eyes
entering into “new” markets
regulations., quality,
compliance
pricing, market access &
distribution channels
resources and infrastructure
competition, costs
market awareness & promotion
10Fernando Ferrer. Multinational Partnerships
Fresh Eyes
understand the market’s dynamics
use bottom up approach
11Fernando Ferrer. Multinational Partnerships
address the countries’ demands
commitment, flexibility
clear objectives,strategy, organization, people,
resources, skills
deep and rigorous analysis to take informed decisions in an ambiguous multicultural
environment
12Fernando Ferrer. Multinational Partnerships
connect with the targeted Country and Region from different perspectives
invest in learning
Economical
Social
Political Technological
Industrial
Natural Environment
13Fernando Ferrer. Multinational Partnerships
avoid invasive tacticsconquer the market by understanding it:
business development
show cultural sensitivity
engage with the local culture and community
spend time with international
customers
lead with Senior decision-makers
demonstrate local commitment
understand the rational and the
emotional culture
partner & learn with local experienced
organizations
divide risk by partnering with players that are looking to grow
through innovation
building trusts takes time
14Fernando Ferrer. Multinational Partnerships
specific market approach
eliminate complexity in the processes
15Fernando Ferrer. Multinational Partnerships
lead the change against “Not Made Here”
16Fernando Ferrer. Multinational Partnerships
Procedures, controls and ensuring quality, ethics
and compliance must support business
development and innovation
Planning & Decision Making
Organizing
Leading
Controlling
17Fernando Ferrer. Multinational Partnerships
Regional & Country Strategies aligned with the Corporation and the Market
Business Models, Plans and Life Cycles
• Organic / M&A , JV , Alliances / Distribution , PartnershipExpansion & growth
• Revenue / ProfitFinancial goals and cash flow
• Proprietary / Generics / Holistic Approach Product portfolio and Marketing strategies
• In-company / outsourcing - mixed / investments , infrastructure Commercial & Industrial organization
• Global / Country / AccessPricing & Served markets
18Fernando Ferrer. Multinational Partnerships
Expansion & Growth models
Organic
High Time and Resources consumption
Gain experience
Follows the Corp model
M&A, JV, Alliances
Time Savings
High Cash Investment.
Integration is key
Distribution, Partnership
Less Investment & profit
Communication and alignment
different needs, benefits and time to market
19Fernando Ferrer. Multinational Partnerships
• select the products that make sense to the market
• new expensive therapies are difficult to commercialize
• different demographics and diseases from US and EU
• Wide range of registration timelines and requirements
Product Portfolio / Product Mix
20Fernando Ferrer. Multinational Partnerships
• For pricing approval, Governments are requesting pharmacoeconomic studies showing benefits
• discounts and exchange rates of local currencies affect the forecast & marketing plans
• autonomy among the Business and Therapeutic Areas avoid the bargain of the portfolio
• invest on developing partnerships with the multiple distribution channels
Price and Place
21Fernando Ferrer. Multinational Partnerships
• push and pull messages locally tested and validated throughout multilevel channels
• local market research and holistic vision including all the stakeholders
• follow and innovate on the traditional and digital channels
Promotion and Communication channels
22Fernando Ferrer. Multinational Partnerships
• impact on Latin American and Emerging markets must be considered at early stages
• production scale is key for cost leadership and market share after LOE
Integrate Clinical, Technical, Operational and Growth Strategies
23Fernando Ferrer. Multinational Partnerships
• remain global and differentiate yourself from local competitors
• protect Brands and IP from non-international practices or corruption
Brands and Intellectual Property (IP)
24Fernando Ferrer. Multinational Partnerships
• resources in headquarters providing dedicated support and guidance to the local business
• local organization fully dedicated to the local operation
• integrate the organization across the boundaries
• higher demand of experienced talent, exchange rates and inflation impact the HR costs
Human Resources (HR) and Structure
25Fernando Ferrer. Multinational Partnerships
• achieve profit as the ultimate goal• invest within the local communities • think long term
Bottom Line
26Fernando Ferrer. Multinational Partnerships