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Is a US office central to entering the market?

Of all the considerations to think through entering the US market, how high is having a local office? We work with a lot of companies who want to establish themselves here and some rank this as most important and others feel this is not important at all (both have been very successful I would add). I think it depends on the model – of the mindset that “there are no best practices since your company / situation is unique”. Here’s what a few on LinkedIn thought:

Cindy Mazza wrote:

Good question and your right the model has a lot to do with the approach. Having been on both side of the ‘desk’ as a merchant and in manufacturing I find that most U.S. companies like to have someone in the U.S. to speak to in real time if a problem arises. 24/7 Blackberry use has helped to make this less pervasive but in the long run having a person who the customer feels connected to makes sense if only for peace of mind.

On the other hand if most of the customer base has a global viewpoint and is very experienced working and traveling globally then it may be possible to not set up a U.S. office. It really depends on the industry. Personally I would set up the office to handle process work and give my team somewhere to base when visiting the U.S. then if it was not used take it apart later.

Tara Baten wrote:

Great question. Many people feel comfortable knowing the team they are working with is local – whether it is in the same city, state or country. The benefits are many – time zone considerations, responsiveness and simple awareness of what the trends are and latest news in the US. It all boils down to the simplest element of customer satisfaction and retention – relationship building.

Brett Jarvis wrote:

In addition to the other comments, which are valid regarding customer service and the logistics of transacting business, you also have to deal with the mindset. You need to consider whether the U.S. markets in question will even consider a company relevant to them at all if they don’t have a presence here.

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One Comment


  1. More responses keep coming in for this topic:

    Brad Mumbrue wrote:

    Others have touched on this, and I agree that it depends on the business/industry model. How high touch is it? Do you need a sales and customer service organization on the ground?

    Other things to consider:
    How well known the company is globally? Have potential American customers heard of the company, is it on their radar in other markets?

    What kind of risk is the company able to bear by expanding in the US? Do they just want to test the waters and observe what happens and the potential for growth? Or can they plunge in with a major investment in capital, marketing and staff without endangering core markets?

    Does the company have experience expanding outside of its home market? What lessons can it draw on?

    Eric Seymour
    June 29, 2009

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