Question

Topic: Strategy

Business Initiatives In Apac Region

Posted by Anonymous on 250 Points
We are a matured and Indian global players in Engineering services and PLM services with focus on automotive, aerospace, Industry, Off road vehicles, etc. We have presence in UK, Europe and US markets besides domestic market. We would now be focusing on APAC market and would have our office opened in Bangkok by this month end.

I would invite suggestions and advices from experts on devising our business strategy and initiatives.

Thanks and in advance.

Regards,
Sunil Kumar
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RESPONSES

  • Posted by Peter (henna gaijin) on Accepted
    Thailand is an interesting choice for an APAC headquarters. Not where many would often choose. More interesting when you consider your target industries, none of which are strong industries in Thailand.

    Some comments about the region:
    - Asia (particularly East Asia - China, Japan, and Korea) is very much relationship focus. You will need people on the ground in each country (either your own or very strong local partners).
    - The business methods used in each country are very different (from each other, and also from India's). So using local people is pretty much required. But there is also a lot of historical baggage between these countries, such that it often does not work well to have, say, a Japanese person run the region.

    My suggestion:
    - if you have the resources, get good local people or partners in each country.
    - if not, you need to put a lot of emphasis on finding the right person who can bridge the cultures. Here are some generalizations - Americans, Indians, and Northern Europeans are very much get down to business right away types, which doesn't work well (I know - I had to make radical changes in how I was before I could be successful in Asia, and I've also seen an Indian we put in charge of Asia Sales cut sales in half within a year by alienating everyone). These traits have to be overcome in order to succeed in Asia. Someone who is aware of this and has taken steps to change to the local style would be required.
    - the process will take time, as you need to build up relationships. Be ready to go in this for the long run, not just short term gains.
    - pick the low hanging fruit. Go after the countries which are easiest for you to get in to and get benefits from. Based on the industries you listed, I would think Korea and/or China would be your main target markets.
  • Posted by Peter (henna gaijin) on Member
    How about markets of Singapore, Malaysia, Burnei and Australia?
    I don't think any of these are large markets for the products you mentioned, which is why I didn't suggest them. But these could also be good markets for you in that they are more similar business cultures to the ones you currently do business in, so this could allow easier entry.

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