|
Top 3 in 3
I have defined a vision for
Welocalize which I call "Top 3 in 3." What this means is that within the next
three years, Welocalize will become one of the top three companies in our
industry. In order to achieve this,
we plan to double our size in the next 18 months to approximately $60
million in sales (Phase 1) and double yet again in the following 18 months
to approximately $120 million in sales (Phase 2).
Our plan is dependent upon
acquisition of competitive, like-minded companies. Eugene McGinty and Andre
Pellet, both Vice Presidents of Welocalize and
both former Presidents of Connect and M² Enterprises, respectively, are
leading our Mergers and Acquisitions (M&A) practice. Leveraging from previous M&A
experience, they have developed a detailed acquisition strategy. The
strategy includes acquiring specialized skill sets and talent such as
software testing and in-country translation teams, targeting of companies in
specific geographic locations and targeting of companies with customers in
select industries.
Why embark upon an M&A
strategy and what benefits might Welocalize and our clients realize? There are two reasons:
- Market Forces
- Opportunity
Market Forces
Free-market forces are very
efficient in driving the need for more responsive and efficient companies
in every industry. As industries
mature, the organic growth rate of the industry as a whole begins to slow
down, and the only way a company can continue to achieve a better than
average growth rate is by stealing market share from a competitor. Stealing share is a long and laborious
process, so to accelerate their growth, companies are motivated to
consolidate and acquire market share as opposed to stealing it.
As more market share is
acquired, critical mass is achieved and the company can begin to leverage
its larger competitive profile through the sheer size of its sales force
and more efficient delivery platform.
Larger, more sought-after contracts begin to flow its way. As market share consolidates at the top,
smaller companies find it harder to compete, wither and fail, or find a
small specialized niche that supports a life-style business.
If the larger company is
managed well, its cost of goods sold and sales & marketing expenses
decrease. With the subsequent
increase in net income, the company can then either reinvest to develop
even more competitive services or return the value to its shareholders, or
a combination of both. A
well-managed company balances its reinvestment and return needs and becomes
the market leader. Very satisfied
clients and investors is the result.
I believe that market forces
are currently driving exactly this scenario in our industry. Thus, in order to remain competitive, to
satisfy our clients with more efficient and responsive services and to
achieve the appropriate financial success necessary to support reinvestment
and growth, Welocalize has committed to leading consolidation in our
industry.
Opportunity
We are a service-based
business. Our assets are our people,
and the best way to attract industry-leading talent is with the most
attractive opportunity. A company
that is healthy and growing is able to offer interesting challenges, career
paths and unique opportunities for personal growth and reward. The cycle of success becomes
self-perpetuating. A successful company
attracts successful talent, which in turn makes the company even more
successful. This is our goal at
Welocalize.
In summary, I restate the
question, why grow? The answer is
clear. Market forces and competitive
opportunities drive consolidation.
Companies that are unable or unwilling to consolidate become
non-competitive and lose value.
Welocalize is determined to increase value creation for both our
clients and shareholders year-over-year.
We aspire to greatness and a market-leading position. Our vision is "Top 3 in 3."
E. Smith Yewell
CEO
smith.yewell@welocalize.com
Welocalize at Localization
World Shanghai: March 20-22, 2007
As a
leading sponsor of Localization World, Welocalize is attending the Shanghai conference
this month in full force. With up to
10 representatives and 4 speaking engagements, we are leading discussions
on integration, compliance and production in China.
Throughout
the conference, Welocalize personnel and executives will be on hand to introduce
and discuss our new Hybrid Delivery ModelSM.
Our dual-shore production approach
combines the best of two models by offering local
expertise and management with cost and time-efficient production performed
offshore.
On
the first day of the conference, Willem Stoeller, Vice President of
Enterprise Applications and Media/Telecommunications practices, is
co-hosting a presentation on GB18030 compliance and certification for
software products in China. With valuable input from Dirk Meyer,
Senior Program Manager at Adobe, the presentation will focus on definition,
process and business drivers for obtaining certification. From internal
testing to post-certification monitoring, Mr. Stoeller's
recommended 5-step model will guide you through the certification process
and highlight best-practices and long-term benefits. Mr. Stoeller is also
leading a pre-conference workshop on application of standards and models in
localization.
On
the same day, Andre Pellet, Vice-President of Welocalize, is moderating a
point/counterpoint discussion on Localization M&A. Intended for
language vendors, this session will define the M&A environment within
the localization industry and provide interested parties with information
on the options available, the benefits/draw-backs of each and the overall
process of M&A. Attendees will
leave this panel with a better understanding of the requirements for
eligibility and a long-term plan suitable for their business.
In another
session, Chris Grebisz, Chief
Operation Officer of Welocalize, is participating in a similar
point/counterpoint discussion on the growing demand for Asian localization.
More specifically, this session focuses on the shifting relationship
between language service providers (LSPs) and
multiple language vendors (MLVs) in response to
increasing business in Asia. With the influx of Asian localization
needs, both LSPs and MLVs
must rethink their strategy and determine an appropriate course of action,
whether it be refining or diversifying their target market, or
participating in the consolidation trend.
Mr. Grebisz will provide valuable insight on integration with LSPs in China
from an operational point of view, stressing the cultural challenges as
well as inherent production benefits.
We
look forward to sharing our new service offering and discussing pertinent
industry issues and trends with peers and customers alike. For any questions on the Hybrid Delivery ModelSM or on program details for
Localization World Shanghai, please contact your account executive or send
an email to caroline.gouin@welocalize.com.
|
