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International Business Expansion

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Thoughts and considerations for expanding internationally: culture, localization, culture and business models.

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International Business Expansion

  1. 1. CONFIDENTIAL & PROPRIETARY MATERIALMARKETING & STRATEGY FORINTERNATIONAL EXPANSIONGerardo A. Dada, Head of Global Product Marketing@gerardodadaAmerican Marketing Association - San AntonioSEPTEMBER 22nd, 2012 @rackspace / @SanAntonioAMA / @gerardodada
  2. 2. AGENDA CONFIDENTIAL & PROPRIETARY MATERIAL  Rackspace and the Cloud  Our International Journey  Why Expand Internationally  Where to Start  Business Models  Localization  Top Mistakes to Avoid @rackspace / @SanAntonioAMA / @gerardodada 2
  3. 3. RACKSPACE® HOSTING CONFIDENTIAL & PROPRIETARY MATERIAL 4,500+ WE SERVE OVER $1 RACKERS 60% OF THE BILLION $$$$ FORTUNE® 100 Annualized Revenue 190,000+ CUSTOMERS 84,000+ SERVERS 22,085+ VM ≅70 PB STORED GLOBAL FOOTPRINT 120+ COUNTRIES8 WORLDWIDE DATA CENTERSPORTFOLIO OF A LEADER HOSTED SOLUTIONS Gartner Magic Quadrant Dedicated - Cloud - Hybrid for Managed Hosting @rackspace / @SanAntonioAMA / @gerardodada
  4. 4. WHAT IS THE CLOUD? CONFIDENTIAL & PROPRIETARY MATERIAL • Utility - Pay only for what you use • Instant on • Shared – investment is distributed • Transparent • No Upfront Investment - OpEx vs CapEx Bottom Line: The cloud provides business agility and allows you to focus on your business @rackspace / @SanAntonioAMA / @gerardodada 4
  5. 5. RACKSPACE’S GLOBAL JOURNEY CONFIDENTIAL & PROPRIETARY MATERIAL GLOBAL FOOTPRINT 120+ COUNTRIES 8 WORLDWIDE DATA CENTERS 2 SUPPORT CENTERS The Rackspace strategy does not change We aim to be the service leader in every market we serve @rackspace / @SanAntonioAMA / @gerardodada 5
  6. 6. WHY EXPAND INTERNATIONALLY CONFIDENTIAL & PROPRIETARY MATERIAL • Have you exhausted the local market? • Good Reasons: growth, opportunity • Are you committed? – Management Buy-in – Investment and resources – Patience @rackspace / @SanAntonioAMA / @gerardodada 6
  7. 7. WHERE TO START? CONFIDENTIAL & PROPRIETARY MATERIAL • Market Planning and Opportunity Analysis • Market Sizing - Addressable Opportunity • Legal Framework – Taxes, Customs and regulations - NOM, ISO, UL , PII • Demographics and business environment – Business may be centralized in one of a few cities – Propensity to buy in retail: touch & feel the products – Practicality of Ecommerce: credit card adoption, shipping efficiency and trust@rackspace / @SanAntonioAMA / @gerardodada 7
  8. 8. BUSINESS MODELS CONFIDENTIAL & PROPRIETARY MATERIAL • Centralized versus localized model – Think globally but act locally – “Glocalization”: finding the balance between the two • Selling internationally from one location • Indirect models – Distributor, agent, reseller, etc. • The core business strategy may not change (i.e RAX) • Global web presence – How to do it right @rackspace / @SanAntonioAMA / @gerardodada 8
  9. 9. RACKSPACE.COM/ES CONFIDENTIAL & PROPRIETARY MATERIAL @rackspace / @SanAntonioAMA / @gerardodada 9
  10. 10. LOCAL HOSTING IS BETTER CONFIDENTIAL & PROPRIETARY MATERIAL(IS IT?) @rackspace / @SanAntonioAMA / @gerardodada 10
  11. 11. LOCALIZATION CONFIDENTIAL & PROPRIETARY MATERIAL • More than translation • Religion • Language is different – UK vs US English • Understanding history • Culture impact on logos and colors Examples: Orkut in Brasil and Baidu in China TIP: balance local and corporate resources @rackspace / @SanAntonioAMA / @gerardodada 11
  12. 12. NISSAN IN LATIN AMERICA CONFIDENTIAL & PROPRIETARY MATERIAL Nissan missed the fact that ‘moco’ means booger in Spanish… 12 @rackspace / @SanAntonioAMA / @gerardodada
  13. 13. NIKE IN THE ARAB WORLD CONFIDENTIAL & PROPRIETARY MATERIAL Nike learned the hard way the fire design on their sneakers looks very similar to the Arabic word for Allah @rackspace / @SanAntonioAMA / @gerardodada 13
  14. 14. CULTURE CONFIDENTIAL & PROPRIETARY MATERIAL • History and attitudes between cultures – Good and bad (Malinchismo) • The importance of titles and hierarchy – Business cards in Japan – Judging by looks and formality • Importance of relationships and trust – In many countries business in done in person – Use of Alcohol and importance of social events @rackspace / @SanAntonioAMA / @gerardodada 14
  15. 15. CULTURE CONFIDENTIAL & PROPRIETARY MATERIAL @rackspace / @SanAntonioAMA / @gerardodada 15
  16. 16. COMMON MISTAKES TO AVOID CONFIDENTIAL & PROPRIETARY MATERIAL #1 – Insufficient commitment from management #2 – No business or market plan & priorities #3 – Underestimating emotions and relationships #4 – Not understanding culture #5 – Going after too many opportunities at once #6 – Expecting quick results @rackspace / @SanAntonioAMA / @gerardodada 16
  17. 17. CONFIDENTIAL & PROPRIETARY MATERIALTHANK YOU Gerardo A. Dada @gerardodada www.TheAdaptiveMarketer.com RACKSPACE® HOSTING | WWW.RACKSPACE.COM

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