Transcript Belkin - HEC Paris

Best in France Case Study
Belkin Corporation in France
Andrea GANDINI
Andrei KOTOV
Cristina JARRIN SILVA
Xiyin CHEN
December, 2003
Belkin Corporation
• Belkin is a privately held company with its headquarters
located in Compton, California.
• Leading technology company that provides connectivity
solutions to the B to B and B to C Computer and
Consumer Electronics Market. Industry Leader in B to B
E-commerce integration.
• Belkin is considered one of the fastest growing privatelyheld companies in the U.S.A., with wholly owned
subsidiaries : Belkin Corporation, Ltd., located in
Northampton, United Kingdom, and Belkin Corporation
BV in the Netherlands that supports the rest of the
European continent.
Belkin Corporation
• Diverse product offering: USB modular hub systems, KVM
switches, surge suppressors, wireless accessories, cabling
accessories.
• Service offering: Bar coding, turnkey product development,
e-commerce integration, just in time management, private
labeling and custom molding of cables and enclosures.
Belkin Corporation
• The company was created in
1983, reaching $ 100,000 of
sales. In the year 2002 the
company reached sales of $
460 millions worldwide and
projects sales of $ 500 million
for the year 2003.
Why it came to France
• Cautious approach to International Growth. The office was
not open until there was a certainty of reaching a critical mass
in terms of revenues.
• A native French Management was considered a critical success
factor for the office operations.
• Belgium was also considered to open locations, but France
offered better advantages in terms of logistics and
coordination.
• The French market is an essential strategic point for the
development and growth strategy of the company.
Why it came to France
• Belkin’s French operations were opened in 2000, as a
subsidiary of the UK organisation. This office is a purely Sales
and Marketing Office, as all logistics and finance are located
in the UK.
• Belkin opened a Representation Office in France at is a key
strategic point to market its products in the area. In fact,
Belkin will achieve 14 Million Euros of Sales in France in
2003, with the expectation that the French Region will deliver
approx. 80 Million Euros in Revenues by 2008.
Company values
• Cultural challenge related to work ethics in France, which
differed from the American perspective.
• The core of the sales strategy of the company had to be
changed to fit the French prevalent view.
• To instill the company’s values in the French Unit, Belkin
created a consulting team of Senior Managers, denominated
“Mc Belkin”.
Company values
Belkin Core Values
•
•
•
•
•
•
•
•
•
•
The more senior the manager, the more expert on the presentation,
implementation, and execution of the model.
We don’t focus on selling products, we focus on providing VALUE to the channel.
Everyone participates because you have to DO IT so you know that it works, and
so you speak with passion and authority.
We focus on the most important channel partners and largest opportunities.
We take responsibility for our channel partner’s results.
We become the channel partner’s best supplier.
“No” means nothing to us.
We only look at “sell through”, not “sell to”.
We always have “Sell Through” data on hand.
We benchmark, set expectations, and measure results for all of the elements that
deliver VALUE.
Company Products
•Belkin doesn’t manufacture any of its production in France due to cost
issues.
•95% of the products are produced in the Far East.
•There are no perspectives in the near future to produce in France, as the
company has cost and technology advantages in the Far East and the United
States.
Company's clients
• Clients are classified in four major channels: Retail,
Mail Order, Distribution and Value Added Resellers,
and Original Equipment Manufacturers.
• The major expectation from clients is that Belkin
will be a “Subject Matter Expert” in the categories
that the companies manufactures and sells.
• French presence helps satisfy costumers’ demands as
retailers expect regular visits to shops and
continuous communication with client’s personnel in
French.
Constraints in France
• The most important constraint was the Legal System, which
was perceived as “complicated” by the Senior Management.
• Rigid Labor Regulations.
• Higher Cost of Employment.
• With practice, they also discovered that changing the role of
an employee or his or her reporting structure is more difficult
in France than in any other of their subsidiaries.
Adaptation to France
•
Adaptation of the company’s Strategy for France:
–
Having a French base allows them to truly make sure
that their products have a chance for success in
France.
–
This includes adapting their Marketing Strategies
based on feedback from French colleagues as well as
Field Surveys, all the way down to testing the
products in the region where they will be sold.
Adaptation to France
•
Creation of the “Pan European Business Development
Team”, which aims to adapt the company not only to
France, but to all the European Markets in which it
operates.
•
Facilitates the integration of the Managers throughout
the region, and allows the share of expertise, know-how
and cooperation.
•
It is a regional adaptation of the company’s policies
regarding Management Development, Workforce
Planning, Communication Policies, Motivation and
Training.
Key Constraint Costs
• Human Resources costs are higher than any other region
that the company operates.
– These has been the key constraint experienced as they grow
the team in France and the Legal Structure changes.
– Costs of dismissals are higher compared to other European
locations.
• Cost of transportation and traveling in France are
increasing.
• Communication constraints.
It is perceived that the
integration of French managers is more difficult. Even
though they are fluent speakers they don’t feel comfortable
with English.
Key Benefits
• The presence in France is the most important reason why the
company opened its office.
– French Clients feel much more comfortable dealing with a
company that has a base in France. They believe that is shows
commitment to the Region.
– The local presence has allowed to significantly increase the
customer base.
• Responsiveness:
– Having the sales people based in France allows to the company
to be much more responsive (quick and more efficient) to their
customer needs.
• Recruitment:
– Natural advantages at recruiting in local market: language and
knowledge of local market and existing client relationships in
France.
Essential Advice
• “It is very important that the Senior Manager who will run
the French operations be inducted into the company values
BEFORE he implements the operations”
• “It would be wise to have in-house counsel to guide you
through the complications of opening and managing an
office in France”
• “Hire an experienced HR manager BEFORE you hire
anyone else – will save a lot of pain down the line”
• “Any company opening an office in France will have to do
so with an OPEN mind, expecting differences and
integration difficulties”
We Thank
Rohit Nartlehy
Pan Euro Relationship Manager
Permanent Location: Amsterdam
Phone: 316 21 89 68 11
E-mail: [email protected]