The document discusses a French biotechnology startup company that is exploring international expansion opportunities across multiple markets and applications of its technologies, including markets for rice processing, oil extraction, food drying, and baby powdered milk. The company is considering different partnership models for each market based on factors like market size, critical success factors, and types of local partners needed. It must focus its limited international strategy resources due to being a small startup.

1. Case Study #1 :
-Biotechnology startup company from France
-International development axes
#1 : markets
# 2 : production
# 3 : technology / R&D
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2. ABCAR DIC PRocess: a French biotechnology
startup with many different markets.
http://www.abcar-dic.com/index.php?id_site=2&id_page=
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3. Applications of Technology :
- Rice : improve quality (and retail price) of upon harvest
[Markets : Thai, Vietnam rice processors, world’s 2nd & 3rd]
- Oil extraction (palm…) : with application on biofuels,
etc. [Markets : Indonesia, Malaysia]
- Fruit and vegetable drying :
- For food industry : high quality ice creams, etc
- For food retail : create range of fruits and veggie snacks
- Baby powdered milk : bacteria destruction & vitamin
preservation.
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4. Summary of Rice Oil extraction Food Baby
markets: powdered milk
Market A few Asian countries ; a A few Industrial Many possible A handful of
handful of actors ; large users only : actors , many actors
potential mkt easy to markets worldwide
negotiate either 80/20 (Nestle, Mead
(Mitsubishi rule or chose Johnson…), with
Corp…) ; large easiest SUPPLY strong
potential mkt ‘LANE’ technology
culture
Critical Achieve long R&D in Achieve control of Capacity to achieve
success collaboration with powerful supply of raw quality
factor actors having poor Ditto materials / requirements of
technology culture, and a capacity to deliver clients during test
different business culture required quantities phase
(Asia, mass market, low to supermarkets…
emphasis on quality…)
Type of ALLIANCE with Powerful Ditto JV with (1) CONTRACT
partnershi technology broker familiar farmers, (2) (technology
p for with rice industry and Asian wholesaler of transfer) with 1
culture (=> Mitsubishi
O’seas fresh of these world
Corporation)
activities fruits/veggies, leaders (
4
(3) distribution royalties)
contract with

5. Innovation Strategy of ABCAR
Goal : for each major application (rice, oil
extraction, fruits/veggie, powdered milk) , (1)
market research, (2) identify & negotiate with
potential partners.
Constraint : the company is a startup, therefore
has limited resources for its int’l strategy.
Therefore…
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6. PROBLEM : too many possible applications/markets!!!
Supply Processing Factory Final market :
Supermarkets
(Europe, USA, Asia)
Sept
Sept
Nov.
fruit snacks
Where to locate ?
1- cheap labor?
2- presence of local J.V. partner
? 3- Low transport cost (raw material)
4- Low transport cost (finished product) Requirements :
-Steady supply over the year
-Flexibility (quantities)
Innovative contract with farmers :
Pre-purchase harvest
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7. […] H.Q. (France)
Rep. Office in ASIA :
(1) Booming region (market + sourcing)
(2) Location in MALAYSIA : centre of Asia, presence in key
markets (oil), presence of multinationals (Nestle)
Rice : Palm Oil : Fruits & Powdered
Veggies: Milk
Identify Decision Maker :
Timing : complementarity with other party’s « strategic clock » (competition on
market, individual’s carreer moves…)
Fit technology / « client »’s market .
Negotiation Process:
FIT: fine-tune match between technology offered & other party’s needs
Marketing strategy TRIAL & ERROR : eg Fruits & Veggies : product in its retail
form OR for INDUSTRIAL usage (Hagen Daazs…)
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8. [powdered milk]
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9. March March March March March
2005 2006 2007 2008 2009
-very interested in -Sends engineer to
technology ; French startup tp
-Executive has no evaluate facilties and
authority to recommend technology
to H.Q. (USA, Indiana). -Start technical
Result : only info exchanges betw. R&D
Xchange on Technology units (France- Indiana)
1st meeting
BMS Q.C. Executive Commission
becomes Head Technology
executive, large study on
of Q.C. at H.Q. transfer
Philippines BMS milk contract?
factory Technology transfer : powders .
-French startup grants right to build machines using its technology ; no
investment required.
-French startup receives royalty [ x % per ton of milk processed in each factory
worldwide]
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10. [powdered milk]
(1) Client evaluates technology :
Modify technology Modify technology
test test test
time
H.Q. (France) Contract
( technology transfer)
H.Q. (Mead
Number of plant where technology is to be installed
Johnson, USA ) Revenue model ( $ xx /ton) * number of years
Intellectual Property agreement
Possible role in technology upgrade
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11. What does theory say about :
Forms of International Behavior ?
OUTWARD FORMS INWARD FORMS
Export Intermediary Import Intermediary
Export Agent « LINKED » FORMS Buying Agent
Export Direct Strategic Alliance Import Direct
Sales Office O’seas Cooperative Manuf. Buying Office O’seas
Licensor O’seas Countertrade Licensee in Home country
Franchisor O’seas Franchisee in Home Country
FDI to supply FDI to source
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“International Marketing – An SME perspective”. De Buca, Fletcher and Brown, Prentice Hall, 2004, p249, Fig 7.5

12. What does theory say about :
The stages of Market Research process ?
RESEARCH PROCESS INTERNATIONAL ISSUES
Geography + distance
Problem Identification Culture
Lack of market knowledge
Define Research strategy Construct & Measure & Sample equivalence
Data collection Secondary data :
(accuracy, comparability, reliability, source)
Primary data :
researcher and respondent bias
Analysis and Interpretation Results : comparability & local biases
Disseminate results Avoid Culturally offensive conclusions
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“International Marketing – An SME perspective”. De Buca, Fletcher and Brown, Prentice Hall, 2004, p162, Fig 6.1

13. Problems with secondary data : the most important
sources of information by country, by order of importance.
JAPAN S’pore TAIWAN KOREA
Customers Government Customers Customers
Govt Political contacts In-house surveys In-house surveys
In-house surveys In-house surveys Competitors Personal contacts
Personal contacts Customers Govt Business contacts
Local Surveys Business contacts Personal contacts Political contacts
HK China Etc …
Customers Customers
Personal contacts Political contacts
In-house surveys Newspapers
Trade Associations Personal contacts
Magazines Magazines
Business contacts
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“International Marketing – An SME perspective”. De Buca, Fletcher and Brown, Prentice Hall, 2004, p173

14. Challenges against accurate data :
1- lack of local resources and skills (developing countries )
2- Official sources can be trusted?
China : complex, multi-level, vertical reporting system encourages optimistic
reporting of economic data
3-Information kept secret by competitors.
China : why is cost of freeze drying so cheap ?
4- Hidden barriers to entry.
Japan : why is it difficult to introduce technology?
The case of Bluetooth Watch for children at Tokyo Disneyland
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“International Marketing – An SME perspective”. De Buca, Fletcher and Brown, Prentice Hall, 2004, p175

15. Case Study #2
-I.C.T. startup company from France
- development axes
#1 : markets
# 2 : production
# 3 : technology / R&D
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16. The company, its technology and
products
Stage 1 : a simple watch for young children
Stage 2 : a bluetooth/wifi watch for value added
services (education, entertainment)
Stage 3 : a social network for young children
Breakthrough stage 4 : Internet access security
( corporate & consumer markets)
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17. Stage 1 : A time-teaching watch for children
below 6 yrs of age
Traditional analog or digital displays are not
adapted to young children’s psychology of time
(positioning oneself in time eg at one precise
moment of the day ; understanding of ‘time
budget’, eg the ‘amount’ of time available before
going to bed).
An original time display technology :
- key moments’ in the day (meal, shower, nap, play,
bus ride, study...), a combination of 2 pictograms :
• activity (a pillow for the nap...)
• phase of the day (a round and shining sun at
noon...).
The child : (1) memorises sequence of activities, (2) capable of anticipating which
activity comes next, (3) estimate the time remaining before next activity starts.
(1) Laboratoire de psychologie expérimentale,
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(2) U.P.R.E.S. E.A. 2114, Université François Rabelais, Tours, France.

18. children <6 yrs : the market
An attractive market.
From TV to toy industry, from food to consumer electronics companies, the market
for young children (less than 6 years old) has tremendous attraction : the market
size (75Mn children between 3 and 6 years of age in the developed world only ), its
very high annual renewal rate (30% per year ... hence preventing saturation) and
the increasing share of their budget that middle classes are spending on their
children’s welfare, leisure, education.
Market size (developed countries) 75 Mn
Market yearly renewal rate 30%
Amount spent annually on child < 6 years old () $7000
[1] US DOA 2004 (Department of Agriculture) :
Very little innovation...
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19. Estimating the market …
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20. Stage 2 : Bluetooth/wifi watch
Cause : Make pictograms customizable from a PC
Unplanned result : INNOVATION
http://en.prim-time.fr/http://en.prim-time.fr/
Sets ALARM (buzz, SMS) when out of range
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21. DOMOTICS sensor
Sensors at hazardous spots
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22. Similar concepts
(1) Map-based location
(3) ‘PROXIMITY’ monitoring
GPS + 3G
Cellphone for kids
Bluetooth / RFID
Wifi
(2) Input/Output
monitoring
NFC (RFID)
Wearable
TAG
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23. Sensors at
Sensor
hazardous spots
WARNING
GATE
GSM
WARNING
GATE
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24. Partenaire Finland
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25. Stage 3 : a social network for young children
http://www.iht.com/bin/printfriendly.php?id=7914803
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26. Stage 3 : a social network for young children
Educatif
Ludique
Espace publicitaire
http://en.prim-time.fr/
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27. Stage 4 : access authentication to internet, information
systems
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28. Summary of markets:
Pictogram watch Bluetooth Watch Social site Internet access
control
Market / Worldwide / Worldwide / Worldwide / Worldwide :
channels Supermarkets, bundling with pay-per-click large
ecommerce, telcos; White-label ; revenue model corporations ;
timepiece retailers social networks
/ royalties (Facebook, …)
Market size 1 Mn/y * €15 net 3 Mn/y * €10 net (eyeball-based €100K - €1Mn
margin + royalties margin revenue) per corporate
client
Technology Fully owned / Fully owned / major Fully owned ; Fully owned /
+location + minor devel. ahead webdesigners central database
Production development (diabetes, …) ; (anywhere : to be located in
ahead . partners in any labor-cost basis) tax friendly area.
Production : OEM developed country. ; worldwide
(no IP risk) Production : OEM ( partners with
IP /cost arbitration) original content
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29. USING A COMPANY OWNED SALES FORCE
• Advantages • Disadvantages
– far greater control over sales – relatively larger resource
and marketing effort commitment
– facilitates formation of closer – higher exit costs
manufacturer-customer
relationships – increased exposure to
– can be used to identify and unexpected changes in
exploit new international political/social environment
marketing opportunities of host country
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