Alex mc guire why export 300312 workshop 6 - part 1

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Alex mc guire why export 300312 workshop 6 - part 1

  1. 1. Digital 2012:Internationalisation WorkshopPart 1- why Export? Alex McGuire
  2. 2. INDEX Why Export? Alex McGuire, SDI What’s Going On David Hartley, Scottish Enterprise How we are doing it! Gillian O’Neil, Moviecom.tv How SDI can help Alex McGuire, SDI Questions?
  3. 3. SDI GLOBAL REACH Background Started in 1981 Joint venture: • Scottish Government • Scottish Enterprise • Highlands & Islands Enterprise People 230 staff: • 22 overseas offices • industry specialists • local staff throughout Scotland
  4. 4. Digital Growth…………..a world of opportunity Games: • +10.2% growth in 2011 to $38.4 billion • by 2016 forecast to grow to $62.4 billion • USA = 41.3% of global games software market value Mobile Phones: • +20.3% growth in 2010 to $132.5 billion • by 2015 forecast to grow to $218.0 billion • Smartphone adoption fuelling huge growth in mobile apps market Internet Access: • +14.5% growth in 2010 to $238.3 billion • by 2015 forecast to grow to $333.6 billion Internet Users: • in 2011………………..2.3 billion users………….32.7% of world population! • Asia 44.8% • Americas 22.4% • Europe 22.1% • Africa 6.2% • Middle East 3.4% • Oceania/Australia 1.1%
  5. 5. Digital v Physical Exporting Some things remain the same…………need to understand/articulate: • Intellectual Property…are you protected? • Pricing model………..will it support intermediaries? • Supply chain dynamics……what is your value proposition? • Channel options………..buyer not necessarily the user • Market selection criteria • Regulatory environment………………disclaimers! • Marketing…………..social media & networking….and more traditional forms e.g. exhibitions, PR • Payment……………will you have security of payment, protection from currency fluctuations? • Fulfilment…………….can you meet demand in terms of resources…..both people and money? The difference…………..Digital economy may not afford the luxury of step/incremental/evolutionary growth. Good idea/Great technology………….often is not enough to guarantee success! Born Global…………………………….fully formed and developed!
  6. 6. Benefits/Challenges Benefits • businesses who are exporting are more productive • by exporting become even more productive still….a virtuous circle • businesses in growth mode and that embrace innovation more likely to export……..clear intrinsic links Challenges • Scotland is small in economic terms with c5.2 million population • 5,500 current exporters………..only 5% of UK total • 3/1000 of World GDP….OR………99.7% of opportunities outside Scotland! Barriers to exporting • lack of awareness of opportunities • lack of strategic approach • lack of internationalisation skills Scotland needs: • more “new” exporters • existing exporters to be braver

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