Comments on: How can you quickly evaluate international product expansion? http://ask.goodproductmanager.com/2008/05/16/how-can-you-quickly-evaluate-international-product-expansion/ Your product management questions answered Tue, 13 Dec 2011 18:48:32 +0000 hourly 1 By: Derek Britton http://ask.goodproductmanager.com/2008/05/16/how-can-you-quickly-evaluate-international-product-expansion/comment-page-1/#comment-155 Derek Britton Wed, 21 May 2008 16:55:04 +0000 http://ask.goodproductmanager.com/?p=34#comment-155 RA - good point, always always this is about the money. The justification for a new geo campaign is driven by market share or revenue or some other tangible. This is presumably already part of the hypothesis that you are being asked to investigate. If not, it is item 1 for the territory - available market revenue / share. Then you start to layer on the factors affecting performance / penetration per my original note and away you go... thanks for the clarification q though. RA – good point, always always this is about the money. The justification for a new geo campaign is driven by market share or revenue or some other tangible. This is presumably already part of the hypothesis that you are being asked to investigate. If not, it is item 1 for the territory – available market revenue / share. Then you start to layer on the factors affecting performance / penetration per my original note and away you go…
thanks for the clarification q though.

]]> By: RA http://ask.goodproductmanager.com/2008/05/16/how-can-you-quickly-evaluate-international-product-expansion/comment-page-1/#comment-154 RA Sat, 17 May 2008 15:31:26 +0000 http://ask.goodproductmanager.com/?p=34#comment-154 Great insight! Thank you. I noticed that there was no mention of the incremental revenue opportunity. I would think that the stakeholders would be interested in how much more they'd be making even if the numbers are rough, right? Great insight! Thank you.

I noticed that there was no mention of the incremental revenue opportunity. I would think that the stakeholders would be interested in how much more they’d be making even if the numbers are rough, right?

]]> By: Gopal Shenoy http://ask.goodproductmanager.com/2008/05/16/how-can-you-quickly-evaluate-international-product-expansion/comment-page-1/#comment-149 Gopal Shenoy Fri, 16 May 2008 17:16:23 +0000 http://ask.goodproductmanager.com/?p=34#comment-149 Great post Derek. Here are some more I would like to add to the above 1) Pricing: a) It does not necessarily have to be less than the US - the cost of doing business in some of these countries are higher than in the US. b) Take into account, impact on pricing due to currency fluctuations. Try to price in the local currencies (especially now since the dollar is weak) c) How are you going to sell to an MNC that has offices here in US and also in the new geo and they want to do one deal that covers both of their offices? 2) US regulations - Will your product be impacted by any US export regulations especially if it contains things like cryptography. How long will it take to get required sanctions. 3) Local regulations - Entities such as EU have their own requirements of products - this may range from a) you being viewed as a monopoly (ask the small company in Redmond) especially if the local companies feel threatened by your entry b) Information you collect like personal information may be against the local laws In jist, there is a whole lot more to it than it appears at first glance. I would go ahead and do the back of envelope calculation that your company wants, but present what else needs to be done to add more color to the picture. I would be interested in knowing how this went. Good luck !! Great post Derek. Here are some more I would like to add to the above
1) Pricing:
a) It does not necessarily have to be less than the US – the cost of doing business in some of these countries are higher than in the US.
b) Take into account, impact on pricing due to currency fluctuations. Try to price in the local currencies (especially now since the dollar is weak)
c) How are you going to sell to an MNC that has offices here in US and also in the new geo and they want to do one deal that covers both of their offices?

2) US regulations – Will your product be impacted by any US export regulations especially if it contains things like cryptography. How long will it take to get required sanctions.

3) Local regulations – Entities such as EU have their own requirements of products – this may range from
a) you being viewed as a monopoly (ask the small company in Redmond) especially if the local companies feel threatened by your entry
b) Information you collect like personal information may be against the local laws

In jist, there is a whole lot more to it than it appears at first glance. I would go ahead and do the back of envelope calculation that your company wants, but present what else needs to be done to add more color to the picture. I would be interested in knowing how this went. Good luck !!

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