How to Continue Your Global Expansion Marketing Plans in this Recession
A Perspective and White Paper from Ruth Stanat
Ruth Stanat, President and CEO, SIS International Research

During this global financial meltdown and tight credit times, it is important to develop a perspective on the timing of your global expansion plans. Having founded SIS International Research 25 years ago, I believe there is a new era concerning global expansion strategic initiatives during recessionary periods.

History Repeats Itself

The 1980s

During the 1980s, the financial markets were on a “roll.” Clearly from 1984 – 1988, US and European firms were beginning to develop both offensive and defensive global expansion and protectionist plans. For example, while the Japanese automotive firms were expanding in the US automotive market, US automotive firms began to order competitive intelligence research on the “potential loss of their market share” in the US. On the other hand, US firms were looking to expand their business in Europe and Asia to capitalize on the potential global expansion plans for their firms.

Then, the US Stock Market Crash of 1987 and the Recession of 1990 put a damper on these international expansion plans. During this period, most firms downsized and “resized” to stay afloat and “deferred” their international or global expansion plans until times got better. On the other hand, a few forward-thinking firms started to monitor and track the potential growth in Asia Pacific, specifically the little dragons and potentially, PRC – then called, the Peoples Republic of China.

The Early 1990s

During 1990, I had the privilege of being invited to speak in Beijing in 1990, the year after the Tiananmen Square crisis. I experienced an interest in marketing from the intellectuals in the audience as to how they could gather “ market intelligence” on other global economies. After my speech, they copied the details of my speech and my first published book, The Intelligent Corporation, published by Amacon in 1990. At this point, I could see that China was “very hungry” for information on “intelligence gathering” and interested in global expansion.

1990 – 1992 The Recession

During this period, very few firms launched or continued their global expansion firms during this rightsizing or downsizing period. On the other hand, I spent these two years traveling to other 100 countries to expand our firm in Asia, Latin America, Western and Eastern Europe and the Middle East.

I was “laying the groundwork” for the big surge or global expansion to come later ... at some point in time. I must admit, that this took some courage on my part during this period of time. I allocated most of my travels and resources toward Asia and specifically, China as I envisioned that this “would be the next mega market”, based on the demographics of the country.

Most importantly during this period was the “fall of the Berlin wall” which injected the transition from communism in the Eastern European Bloc. However, it is interesting to note that Western Europe launched market research programs to expand in Eastern Europe during this time frame.

1993 – 2000 The “Johnny Come Lately Period and the Period of Catch Up”

During this period, most international [not global yet] manufacturing firm began a “gold rush” to the Asian and European markets. International research [not the term “global research”] flourished at an exponential rate. Firms approached us with 20-30+ countries to research their market entry/market opportunity strategic initiatives. In fact, we had to conduct a very focused strategic opportunity analysis which narrowed the focus of global expansion market opportunity for these firms during this “gold rush” period.

2001 and Beyond – “The New Era of Global Terrorism”

After September 11, 2001, the world changed. However, terrorism and anti-globalization efforts have not stopped global research and global market intelligence initiatives. Instead, it re-focused these initiatives to “least risk” regions or countries for global market expansion efforts.

2002 – 2008 – The Golden Age of Global Expansion - The Collaborative Era

During this period, companies “rushed” to the Asian, Latin America, Gulf and the Emerging Markets to expand their products and markets. Both market research and market intelligence flourished during this period. Both clients and research suppliers “partnered” and “prospered” during this period in this global expansionary period. During this period, research firms increased their expertise in the local emerging markets and developed enhanced analytical shills to meet the demand of their clients. In short, this era accelerated global travel for both clients and suppliers as there was a need to “gather market intelligence and research” on the ground.

2009 and Beyond

SIS International Research is currently celebrating our 25th year of our successful global market research and market intelligence practice. The drying up of the world credit markets, the demise of the US housing and automotive markets, and the nationalization of global banks have “rocked” both the financial, manufacturing, retail and service sectors. To this end, most firms are again, downsizing for survival and have “shelved” their global expansion plans.

The Dilemma

Having seen this before, I can only say that only the brave and smart firms will see an opportunity in this global meltdown. During this global downturn, the following are actions that multinationals can take to not only preserve but also expand their market position in global markets.

Market Research and Market Intelligence Considerations for 2009 and 2010

1. Consider utilizing the findings from previous primary research conducted in 2008 and evaluate their findings. Formulate a strategic analysis or plan from these findings from this costly research.

2. Instead of commissioning costly global primary research during 2009, consider commissioning cost effective business or market intelligence projects in select regions or countries.

3. Consider focusing on monitoring what your competitors are doing during this deep recessionary period. This competitive intelligence monitoring will likely yield you great dividends during the economic upturn, when it occurs.

4. Consider commissioning focused competitor profiles during this period on specific competitor and markets to avoid “being surprised” during the upturn.

5. Be prepared for the eventual “upturn” –when it happens. In this case, it may take until the fourth quarter of 2009 or the mid to late year of 2010, or beyond. However, some interim market research and market intelligence is better than “no intelligence” during this period.

---------

Copyright (C) 2009. SIS International Market Research. Opinions and views are not necessarily those of SIS International and its affiliates.

Not for reproduction under any circumstances. Not advice for decision making. SIS assumes no liability for reliance on the information on this site. No representations are made to the facuality, accuracy, timeliness or relevance of the information. See this site's privacy policy for more information.