Opportunities Missed? The "Vision Thing" in Latin America

I had the opportunity to speak with an executive for a major IT systems company headquartered in the USA recently about Latin America. It was a very professional and pleasant conversation, between two people who know the region, speak the major languages and understand how much progress the territory has experienced in the past few years (and decades). The result of our conversation? A bit of sadness, a bit of frustration and a lot of head-shaking as to "why?"

What caused these reactions? After all, this was a conversation about a well-established company that has major activities in the USA, Europe, Asia and other parts of the world. This is a leader in serving customers with sophisticated and complex technology services, and doing so with a great deal of excellence, commitment and long-term staying power. Well, the reality is that somehow, the company is nearly uninvolved in Latin America.

To be fair, the firm does have some projects in the region, and has bought into some existing operations in different parts of Latin America. Nonetheless, when a particular deal came along that would have opened up new capabilities, delivered a strong client portfolio and was to be had at an attractive price, involving two of the most vibrant economies in South America, the judgement was made by a CFO to "kill the deal". The reason? It was in Latin America, plain and simple.

While this discussion went on to other elements about why Latin America is such a strong regional opportunity for high-tech firms (and many others), it remained on my mind, causing just a bit of consternation. After some thought, it seemed apparent to this writer, that the company in question simply has a problem with the "vision thing" (to paraphrase a recent leader of the free world and a leader of a major computing company known by its initials). Latin America is just a "rounding error" in the total numbers generated by this particular IT company. It's not a vital piece of future business, nor is it an essential element in the strategic growth of the organization --- yet. Could that be ready for a change or will this reticence continue and multiple opportunities be missed?

Evidently, at present, they just don't seem to register the phenomenal growth, quarter-to-quarter going on in Brazil, the excellent economic security that has been re-established in Colombia, the strong growth in Peru, the stable, steady-eddy performance in Chile, and even the re-bound in Caribbean nations, and yes, Mexico, too has begun to recover from its dose of swine and economic flu in the past two years.

A key question then, is what is the "vision thing" and what does it take to make a business sit up and take notice of Latin America? Well that's perhaps a post for another time on this same blog, but suffice it to mention that based on my many years of experience in the region, there is a lot of business to be found, profits to be generated, and plenty of customers (and partners) who will commit deeply and for the long-term to your business just as soon as you show your seriousness, commitment, persistence and willingness to work with the "locals". It's a matter of seeing the forest and the trees, or perhaps better said, having "vision" and being willing to use it to see the brilliant future in doing business in Latin America.

Want to learn more about doing business in Latin America? Contact me: DCabrera@TopExec.org

Want to comment? Please do so on this same blog (below).

Thanks for reading.

(c) Daniel A. Cabrera, TopExec.org, All rights reserved, 2010.

The Buzz from Brazil, As I See It

Having recently taken a new job that gives me responsibility for marketing high tech solutions for network security throughout Latin America, I have the chance to travel from time to time in the region. As of this writing, I am in Sao Paulo, Brazil, where I have been working for four days, interacting with multiple professionals associated with my employer's product line.

What does the world look like from Brazil, on the eve of Carnaval (which starts on Friday, February 20th and runs through Tuesday, February 24th)? Well, in the big city part of Brazil, represented by Sao Paulo, it looks reasonably good. The newspapers and TV news all report dutifully and with significant interest on the news pouring from the USA about economic crises, and multi-billion dollar solutions for the auto industry, the home mortgage meltdown and various other challenges. Brazil, meanwhile, toils away with its own share of challenges, and the government continues to commit significant purchasing power to helping its citizens deal with fallout from up north. Globalization being what it is, however, there is no escape from the forces of demand and credit drying up, all the same, as one of Brazil's premiere companies, Embraer, announced today it's laying off 20% of its workforce, due to a drop in worldwide demand for its airplane product offerings.

Additionally, the buzz in Brazil seems to be about the 30-60 day wait to buy (and receive shipment of) a new car. Even those wanting to buy a used car have a period of time to wait, due to demand outstripping supply. Restaurants appear busy, but mostly during the lunch hour, not so much at night. People seem to be complaining that money is tight, yet you can't find a ticket for entry into the Sambodromo (where Sao Paulo's Carnaval celebration is held) for less than $800 (USD).

Folks that are aligned with high-tech product offerings appear to be forging ahead with growth plans across the board. Their main concern is the fluctuation in the US$/R$ exchange rate, which causes their customers and themselves concerns about exactly how much they'll be paying to their US suppliers when the bill comes due. Nonetheless, as off-shore HQ offices tell them to gird themselves for "economically challenging" times, they respond by gearing up for more usage of technology, such as video conferencing, on-line chat and presentation services, and the security solutions that are needed to make sure business (on-line) is not interrupted by connection failures, security breaches or other QoS (Quality of Service) problems. This is a good market for my employer's offerings, and I'm happy to be engaged in serving the clients and partners that we have in Brazil.

In brief, the buzz from Brazil (at least from a "macro"cosm of the economy, like Sao Paulo) is positive, but not 100% so. It remains to be seen how deep the macro economic problems of the world at large will affect this land of extreme potential and tremendous human and natural resource potential. Stay tuned, and thanks for reading. As they say in Portuguese, "Até mais!"

© Daniel A. Cabrera, TopExec.org, All rights reserved, 2009

Making the Case for Credibility - A Latin American Exec Confirms My Comments

As posted in commentary on October 31st of this year, the key to establishing successful business in Latin America is through the hard work and profitable pleasantries of personal relationships.

Recently, I met at length with the G.M. for Latin America of a company specializing in high-tech solutions for security within the Information Technology (IT) industry. The company is on the smallish side, but the products and appliances they offer are excellent, with a fantastic cost/benefit advantage. They compete with some of the biggest and best known companies in networking, security and similar technologies, and they do so without a huge physical infrastructure, local/on-the-ground presence or a well-known brand. As a result, they have to compete with not only the quality and competitiveness of their offerings but more specifically with their commitment to the marketplace.

In what seemed like an echo to the words I wrote here last month, when asked what I thought it would take for his company to expand its success in the region, I told him the following:

• Your company has to be willing to invest for the long-term, in people, talent, product, services
  
  
• You have to be willing to create a presence, and not expect results through once-in-awhile efforts
  
  
• Your credibility is earned over time, with consistency and actions, not words
  
  
• Your brand has to be positioned and nurtured to establish it as worthy of the region's business; you have to earn the right to do business in Latin America
  
  
• You must create value in what you offer, and not just expect pricing or discounting to lead to long-term success
  
  
• You have to become "local" in every sense of the word, and reach your consumers, customers and partners by ways they deem appropriate or useful, not necessarily by your ways

When I finished running down my list of attributes and qualities that in my experience have proven to be tried and true, he said, "I couldn't have said it better! That's exactly what I think about doing business in Latin America." So, in sum, it's not just my experience that underlines these realities in Latin America, but the experience of others that corroborates these realities.

Will every firm take this approach? Certainly not! There will be those that prefer the quicky method, the Wall Street-driven "gotta have it now" approach, but in the end, these will not garner a long-term presence. They will pass through, and their presence will be short-lived. Latin America has changed immeasurably in the past 20+ years, and consumers and buyers throughout the region are far more demanding now about who and how they engage with for commerce, for investment or for any number of other opportunities that continue to arise within the southern neighbors of the United States of America. Which approach is your firm taking? Is it the right one?

Personal Relationships and Business

On a recent radio "article" on NPR, (National Public Radio), the topic was about doing business in Iraq, and all the billions of dollars and euros that are being earned by companies from around the world, mostly non-American corporations. The basis of their earning this business and these revenues? Their willingness to establish themselves, on a personal relationship basis, with the ministries and departments within the Iraqi government, to earn the right to compete for contracts, projects and other investments planned for 2009 and beyond. To paraphrase one commentater: the Westerners are only interested in getting the job done, getting the answer quickly and moving on. The others are willing to stick around and build up the trust and involvement required by these consumers (government or otherwise) even if that means spending a lot more time and effort.

This brought to mind the very real circumstances that exist today in Latin America. It is not simply a matter of having an American executive open up his/her rolodex and start making calls to garner business in the region. Likewise, it's not an effective strategy to drop in for a once-in-awhile meeting or sales call with prospective customers (private sector or government) and expect that meeting or that call to create the necessary elements to winning any substantial business.

Just as in the Middle East, and Asia and most of the world, consumers (executives, corporations, small and medium businesspeople, etc.) are going to insist on establishing with you, your company and your offerings a working, personal relationship. As a friend of mine from Argentina said to me recently, "No one wants to do business with someone who is not committed to the relationship." So, a glad-handing representative from anywhere (even within Latin America) will likely fail to win the business by seeking the quick, easy path to success. Instead, it takes time, effort, actions, investments and a lot of commitment on the part of anyone or any company that wants to earn the right to provide service, products or solutions to customers in Latin America.

Don't believe me? Ask a Latin American what they look for most in a vendor or supplier relationship. Better yet, ask yourself if you're using a long-term approach to building credibility and thus positioning yourself and your company's offerings to best serve the needs and potential wants of your prospective customers in the region. By doing so appropriately, you'll find that success comes to you much more completely, and for the long-term, rather than quickly.

For more information on doing business in Latin America and the world, see:

www.TopExec.org

Thanks for reading, and see you next time.

© Daniel A. Cabrera, TopExec.org, All rights reserved, 2008.