Shape Technology
Managing Director: Malcolm Jenkins
Turnover £11 million; 95% overseas orders; Agents in 27 countries
The aim of Shape Technology is to provide an unrivalled service to our metals industry customers to enable them to meet and exceed the ever-increasing demands for quality products and customer service. Shape Technology is constantly developing and enhancing its products and services by combining advanced process knowledge with the latest technological developments.
The knowledge held by Shape Technology spans over 30 years experience in rolled product instrumentation to provide a continued first class technical and support service to its rolling mill industry customers throughout the world.
Company History
Shape Technology was formed in January 2001 by two major industry players. Shape Technology has now expanded to include the Vidimon Shapemeter Group of VAI, the engineering division of The Broner Group, the Width Measurement and Crop Shear Systems of European Electronic Systems (EES) and the Gauges and Systems division of Integrated Photomatrix Ltd (IPL). The extended product range ensures a strong and secure future for shape and width measurement products and services, specifically developed for the metals industry. Shape Technology specialises in providing: Width Gauges, Spray Systems, Shapemeters, Crop Shear Control Wire Rod & Bar Gauges, Edge Defect Detection, Spares & After Sales Support
* Shape won the Dorset CCI 2004 John Parsons award for having the best plan for improving international communications.
* Shape were awarded second place in the National Business of the Year Award 2004 with a new category of "highly commended" being added to reflect their success
* Shape has been awarded the 2004 Dorset Enterprise & Skills Award for Commitment to Student Development.
Shape's Strategies for Success
At a recent meeting overseas business forum event held for the Dorset CCI, Malcolm Jenkins, Managing Director of Shape, outlined 4 strategies as a guide to success in the international market, languages and culture were high on the list of elements in each category:
1. Right Approach
The strategy has to be right. Do not underestimate the importance of language and culture in your estimations. Will you set up a local company or an office? Do you require a sales agent? Would it be better to enter a joint venture with a local firm? One of the first things to do is attend Trade Shows in the country you are targeting, agents will flock around you if you have a stand, and you will get a feel for the market and competitors. You must be proactive and fast to seize an opportunity. If possible hold an informal meeting prior to answering formal meetings or tenders. Thoroughly research the new market and once you have identified an agent and a strategy, ensure you have a local language website. Being patient enough is essential. Shape now has 40% of its orders from China, this took 4 years.
2. Right Person
Finding the decision maker in different countries can be a frustrating process. Many firms and cultures operate differently. In Asia for example it is important to create a relationship with your clients prior to doing business, whole meetings can go by without talking shop, whereas in the USA you may only have 15 minutes to sell the technical aspects of your product and that will be it. The use of interpreters can be decisive, and you may decide that in order for the person to understand your work they need to visit the firms HQ. You must think carefully about your language, your customer experience and the business image. Slow doesn't always mean bad however, as it can take time to develop contracts. The thing is to plan in advance and review regularly. With some agents you may pay expenses and a lower commission or visa-versa, and you must ensure they know your product and culture well.
3. Right Country
Which are the next stable growth markets? Conduct comparative cost analysis. Find the regional manufacturers and agents, assess the size and nature of your market, research thoroughly, set up a local website. Do you have the resources and time to invest in the medium term? What about the unforeseen costs such as exchange rate fluctuations, local contract variables, rules and regulations, training, travel costs, health and safety aspects? Language barriers can be easier to overcome than trading rules. It may take more than 3 months to be paid by a European client once a contract has been agreed whilst the negotiation with an Asian client may be relatively longer but payment can be much quicker.
4. Right Time
The timing of an attempt to break into a new market is crucial and needs to be thought out during the strategic planning phase. In many markets sole proprietors may own vast swathes of industry. You must take into account that some clients might have the need for a whole batch of products to be delivered at once or it could be over several months. What business cycle are the emerging markets in? It may take a lot longer than anticipated and you must decide how long and how much it is costing you to remain in the race to establish new markets, the former Republics of the USSR are an example of these markets.
Visit the Shape Technology website at www.shape-tech.com
