GOING INTERNATIONAL ENTERING FOREIGN MARKETS Matthias Grabner Sector Manager Technology ADVANTAGE AUSTRIA
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1 GOING INTERNATIONAL ENTERING FOREIGN MARKETS Matthias Grabner Sector Manager Technology ADVANTAGE AUSTRIA
2 PART 1 : IMPORTANCE OF EXPORTS FOR AUSTRIA
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4 More than half of Austria s wealth is generated through exports
5 Importance of International Trade for Austria EUR bn exports of goods in 2016 (-0.2%) EUR bn imports of goods in 2016 (+1.5%) EUR 54,3 bn exports of services 2016 (+3,7%) EUR 44,1 bn imports of services 2016 (+3,9%) Total Services
6 Importance of International Trade for Austria Exporte lt. Statistik Austria in Mrd. EURO Importe lt. Statistik Austria in Mrd. EURO Exportquote Waren lt. Statistik Austria in % 109,4 113,7 Exportquote Waren fob+dienstleistungen in % 131,0 132,0 130,7 121,8 123,5 125,8 128,1 129,8 131,5 133,5 135,7 131,1 139,4 143,2 52,1 55,4 55,4 53,2 53,0 53,1 52,2 53,0 38,2 40,7 40,2 39,0 38,8 38,7 37,5 38, **) Source: Statistik Austria, WIFO, **) WIFO-Prognose
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8 Austria s ICT sector 18,444 companies 108,628 employees (4% overall) 21.2 Billion EUR revenue (5% of all companies) Average 8.3% of revenue spent on R&D Fastest growing sector overall Added value rate of 1 : 2.35 on economy overall
9 9 Austrian ICT main fields of business Hardware retail 2,0% 2,8% 7,8% 1,3% 0,2% 6,8% 6,0% hardware installation and maintainance 12,7% 17,0% Development, customization, installation and maintainance of standard software Development and maintainance of individual software software retail Providing 8,2% Outsourcing 1,8% 1,2% 2,8% Support Consulting 29,4% Hosting Source: KMU Forschung Austria
10 10 Austrian ICT Customer structure 78% 9,7% 9,0% 42,7% 18,9% 16% 3,2% 7,8% 8,7% 6% Austria EU Other Private Manufacturing Telecom & Media Other Public Finance Energy Source: KMU Forschung Austria
11 Importance of International Trade for Austria 56,000 exporters 52.2% GDP s export ratio, 6 in every 10 Euros HRK export per capita EUR bn (stock) Austrian FDI abroad, employing 801,000 EUR bn (stock) inward FDI, employing 251,000
12 PART 2 : ADVANTAGE AUSTRIA
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14 ADVANTAGE AUSTRIA Our business segments Internationalization Agency Encouraging and developing export strategies Innovation Agency Aim: Boosting the innovative capacity of Austrian companies
15 ADVANTAGE AUSTRIA Internationalisation Agency for the Austrian Economy Encourages international activities by identifying business opportunities abroad. Supports cross-border commercial activities. Globally positions Austria as an attractive business location and a reliable business partner.
16 The Austrian Federal Economic Chamber Entrusted with governmental responsibilities: statutory obligation to promote foreign trade Financed through membership contributions (not tax revenue) Creation of a customer-oriented service organisation ADVANTAGE AUSTRIA Austria s official trade promotion organization Business development Knowledge transfer at home and abroad
17 Who offers export support? Austrian Federal Government Business framework Trade policy Export credit guarantees and financing Austrian Federal Economic Chamber Austrian Federal Economic Chamber and its international arm: ADVANTAGE AUSTRIA AUSSENWIRTSCHAFT PLUS ADVANTAGE AUSTRIA platform together with regional chambers of commerce International network of service centres and marketing offices
18 Who offers export support? Private agencies Prisma Kreditversicherungs AG, Coface Austria, etc. Consultants Principal bankers, forwarding agents, etc.
19 ADVANTAGE AUSTRIA Facts and figures More than 110 offices in 70 countries 27,000 Austrian clients 70 years of experience 800 employees 80 nationalities 1,200 ADVANTAGE AUSTRIA events 1,000 ADVANTAGE AUSTRIA publications Global business support
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22 ADVANTAGE AUSTRIA Our Services Knowledge International market expertise better than Google Platforms Showcase the competence of Austrian companies abroad (fairs, events, web) Partners Trusted partners for internationalization (Sector Experts, Distribution Partners, Service Providers)
23 KNOWLEDGE app, social media, notification services weekly e-publication, 5 printed magazines/year over 1,000 publications (country reports and updates, sector profiles, reports on legal matters, magazines) Events (meetings with Trade Commissioners, Exporters Day) One-to-One consultancy by our 800 employees
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25 PLATFORMS FRESH VIEW (glossy brochures about sectors) Events in Austria: market place, B2B-Meetings Presentations abroad: Austrian Pavilions at world fairs, Catalogue Displays, Austria Showcases/Presentations) International Group Missions for Austrian companies abroad (trade missions, fact-finding missions) Establish networks of Austrian subsidiaries abroad (AUSTRIA CONNECT)
26 Smart technologies from Austria for the cities of the future
27 Austria s International Business Platform 200 country sites 28 languages (special focus on Eastern European languages) 1,000,000 visitors per year Market place with profiles of 15,000 Austrian businesses Business opportunities with detailed company information Listings of all events abroad including company profiles Overview of 30 industry sectors
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29 PARTNERS Support for new exporters (Export Centers in all 9 States) Consultancy for Pros (internationalization, export financing, technology consultancy, networks) at Vienna Headquarters Trade Commissions (market entry, in-market support, investment advice, international procurement, crisis intervention)
30 ADVANTAGE AUSTRIA Events (2017) Type of Event Austrian Pavillions 68 Group Stands (joint fair booth) 54 Trade Missions 75 Fact-finding Missions 70 Forums 258 Austria Showcases 68 Catalogue Exhibitions 85 Matchmaking Events 54 Others 553 Total 1.285
31 ADVANTAGE AUSTRIA Information for foreign markets 1 million visits per year International newsletters: 30 Trade Commissions on five continents Various print publications: FRESH VIEW, etc.
32 Market Entry Support Market potential and pricing structures General legal information Import procedure, distribution structure Competition assessment, market share Provision of business and credit information Identifying potential distributors First point of contact, organizing market visits Follow-up action
33 In-Market Support Organizing business trips Scheduling appointments, accompanied-meetings service Credit checks on foreign companies Support with preparation and submission of bids or tenders Intercultural consulting Evaluating the target market, market reports Distributor relationship management
34 Investment Advice Legal and tax framework Recruitment of staff Business location assistance Finding sector specialists
35 International Procurement Sourcing advice Export requirements Supplier contacts Finding quality control consultants Payment terms
36 Trends in Internationalization
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44 PART 3 : GO INTERNATIONAL
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46 Strategic Goal of go international V (April 2015 March 2019): Safeguard Austria s 5 th place among EU-28 exporters (per capita) Motivate and train SMEs to become exporters Cluster 1 Accompany established exporters into new markets Cluster 2 Focus on the export of knowledge-intensive services Cluster 3 Support Austrian foreign direct investors in high-growth markets Cluster 4 Communicating Austria Cluster 5
47 Results to be achieved until 31 March 2019: Number of new exporters: 8,000 Number of Austrian exporters, who are assisted in tapping into new markets: 6,000 Number of Austrian services companies, which are accompanied onto new markets: 2,000 Number of Austrian foreign direct investors, who are accompanied onto foreign markets: 1,700 Number of international visits on global web portal advantageaustria.org: 3.5 mio
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53 Number of Exporters Start of the "go-international" program
54 Any questions? Matthias Grabner Sector Manager Technology & Health, ADVANTAGE AUSTRIA
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