Japan Distribution Strategies

TSI has set up 37 companies with Japan distribution over the past sixteen years, including 26 design automation companies covering the full range of circuit creation, verification, simulation and analysis, analog I.P., wireless, and subsystems.  We have established Japan distribution for Barcelona Design, Leda Systems, Bridges2Silicon, Synchronicity, Beach Solutions, Manhattan Routing, Rio Design Automation, Athena Design Systems and many others. Our reputation and relationships enable us to start at the level of the President of the trading company and work down through the rest of the key people. TSI works closely with Itochu Techno Science, Innotech, DSM Solutions, Marubeni Solutions, and other top quality trading companies.

By writing a Positioning Statement, which describes the Company's business strategy, we start a structured, disciplined, focused and, therefore, predictable process that assures the Japan distribution project will be successful. We solicit selected "A" players and move forward only after there is a positive response to insure the best channel partners are candidates.

TSI knows the limits these organizations will tolerate for financial, administrative and infrastructure commitment to the client, which simplifies and expedites the selection process. Indeed, I have a template of a Business Agreement for each trading company.

In summary, TSI brings the following to the Japan distribution "party":

1. greatest experience setting up the Japan distribution channel
2. broad and deep relationships with all the "A" level trading companies as well as the status of all the EDA players
3. a disciplined methodology that assures success
4. intimate understanding of the best possible business terms that can be negotiated with the trading company
5. a cost effective model to get the supplier into the Japan market!

All of these attributes above strongly suggest involvement of TSI:

1. dramatically increases the probability of finding a top quality Japan distributor
2. enables the execution of a Business Agreement in the shortest amount of time
3. increases the certainty of getting an "A" level trading organization
4. ensures the best possible terms will be negotiated with the trading company.

Initial Business Creation and Startup

TSI has assisted entrepreneurs with the creation of a viable business as well as later on with the development of the Company. At the earliest stage, TSI meets with the founders and helps fashion the technology into a viable product and business strategy. Depending on the capital requirements, venture capital firms or individual sophisticated investors may be approached. Then, TSI remains involved and supplies the unique business, marketing and sales strategies that are required until a full management team can be installed. TSI particularly focuses on

1. Finding initial top quality customers for the Company's products to validate the value proposition,
2. Distinct positioning versus that of the competition,
3. Market segmentation definition that will enable the Company to become a viable participant and attractive to long term investors, and
4. Providing the path to Japan distribution, as described above.

Examples of relationships and clients where this process has been undertaken in whole or in part, include Sunrise Test Systems, Simplex Solutions, Snaketech, Circuit Semantics, Reshape, Bridges To Silicon and others. Contrary to venture capital firms, as an example, TSI usually works intensively with no more than five organizations at a given time, preferring to focus its broad operating experience in a more concentrated manner.

Market Assessments

Market studies have been undertaken that include assessment of

* The regulatory trends and environment,
* Market growth of the competing technologies and standards in the U.S., Europe and Japan
* The competitive position of components and systems manufacturers, and
* Trends in system designs and economic pressures on the various suppliers.

Then, the client's technology and products are positioned and the extensions defined that will enable long term participation in the target segments.

Clients for whom we have conducted market assessments include M/A Com, Avantek, Powerwave Technologies and other organizations.

James Girand
E-mail: call for e-mail address
590 E. Crescent Dr. Palo Alto, CA 94301
650-326-9401 (phone) 650-269-1403 (cell) 650-325-5217 (fax)