Conclusion

Through an abductive research approach, I have investigated how Innovation Centre Denmark in Shanghai can position themselves to reach Danish entrepreneurs, who are interested in establishing/expanding their business related activities to Shanghai.

The thesis have been structured in chapters that consist of the traditional steps in a marketing planning process, which have been modified to provide the theoretical frame to interpret, analyse, understand and evaluate ICDK’s position on a strategic and tactical level. Each chapter depended on the previous in an increasingly sophisticated process with the ambition to interpret the different perceptions and understandings that exist about entrepreneurship in Denmark and China, especially within Shanghai, to provide the most valuable insights for ICDK to position themselves in a favourably way.

The analysis has a starting point in a macro-perspective at national level and how opportunity-driven entrepreneurship can contribute to national growth and development in the overall society. Through the SWOB analysis, the general national economic development in Denmark and China was analysed to find entrepreneur related opportunities and barriers.

Denmark

Copenhagen has developed a thriving entrepreneurial ecosystem, partially due to favourable

legislative and regulatory policy as well as general public support resulting in increased interest in

and ambition to become an entrepreneur. Despite that, very few start-ups have achieved to grow

into large businesses that can contribute to national growth and job creation. Denmark has a small

domestic market that hinders many startup businesses from growing into large and profitable

businesses, which means they have to enter foreign markets. There is an increased focus from the

Government to foster entrepreneurship in order to generate growth.

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China is the world’s largest economy, both in terms of population and total economic outcome.

However, China has experienced a declining growth. In the 13-5 plan, the CPC emphasize their ambition to develop China into an innovation-driven economy to secure a slower but more sustainable growth to overcome current national challenges. The CPC also acknowledge how foreign entrepreneurship can be a part of driving development, create innovative solutions and create jobs.

In conclusion to subquestion 1. The Danish entrepreneurs should consider going to Shanghai if they have a viable idea for the Chinese market and are geared for a fast-paced and increasingly competitive environment. Shanghai has some very interesting opportunities for Danish entrepreneurs. However, it is not recommended that danish entrepreneurs go there on their own or without having created a market study, since Shanghai is so competitive, different and complex to navigate in.

ICDK

By having an entry point like ICDK in China it provides another way to strategically strengthen the sino-danish collaboration, especially within the areas of ICT, life-Science, and clean-tech. Moreover, it also acts as a way to ensure that Danish research and innovation is among the world leaders.

In relation to entrepreneurship, ICDK aims to position themselves as a highly specialised, knowledgeable and skilled partner, who can open the right doors and pave the way for Danish entrepreneurs to navigate in a complex, culturally different and highly competitive market like Shanghai. ICDK recently presented a new Partnership Model as a visualisation of the services they offer entrepreneurs. It is Brandtoft’s ambition to increase the level of value ICDK provide to entrepreneurs through a relationship approach.

As analysed in the SWOB, ICDK have some significant strengths and resources available to them, 1) They are supported by the Government, 2) They are present in an interesting growth market, 3) They have skilled Chinese employees specialised within relevant sectors that are in high Chinese demand, along with 4) a large network of valuable collaborative partners.

However, ICDK has not formulated a specific marketing strategy or target group within the Danish

entrepreneurs. Furthermore, I found several misalignments between their high ambitions and current

capabilities and resources.

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ICDK has a weakness in terms of being confused with the Trade Council as well as an overall weak competitive position. As a consequence they risk to assist entrepreneurs outside of their purpose and scope. Through a segmentation and targeting analysis, I conclude that ICDK should narrow their focus to target R&D entrepreneurs within ICDK’s sectors. By using a concentrated targeting approach to target R&D entrepreneurs, ICDK have the ability to differentiate themselves, while at the same time position themselves in alignment with their capabilities and available resources. This is also a way to provide a stronger basis to customise their services to better fit the individual entrepreneur’s needs and wants.

As a conclusion to subquestion 2, ICDK should use a differentiation focus strategy, where ICDK differentiate themselves from competitors in terms of sector specific offers within a narrow target market. Also, this is in line with their concentrated targeting approach. This makes sense for several reasons: first because it is in line with their overall purpose. Second because they have an annual goal to assist 30 businesses, where only 15 of them should be entrepreneurs. Third, according to the national growth strategy to foster innovation and national growth, it also makes more sense to assist entrepreneurs that are searching for more sophisticated R&D related opportunities. Fourth, other accelerator services mainly target entrepreneurs, who are interested in a share of the B2C consumer market and ICDK are not be able to match their level of experience, capabilities or business network.

Marketing objectives and goals

Based upon the findings from the SWOB, their overall KPI’s and targeting analysis, I propose four marketing objectives and nine marketing goals to enable a more focused and clear purpose with their “Partnership Model”.

Positioning strategy

Through the 7’P in the marketing mix, I analysed ICDK’s services, distribution channels, promotion efforts, participants, physical evidence and process. This enables an evaluation of how ICDK can position themselves favourably towards entrepreneurs, make them believe they will achieve the benefits they are promised, and consequently are inspired to buy the services. I found several key messages ICDK could use to position themselves favourably.

Shanghai may be perceived to be too risky to do business in, due to a lack of market knowledge,

complex legislative policies and many cultural and language differences. This is exactly what ICDK

must frame in a way that position them as the specialised and knowledgeable partner, who knows

all the critical elements of success. ICDK should position themselves as a reliable partner, in order

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to accommodate the fear of failure. Moreover, ICDK could also communicate their value in terms network and collaboration with various business liaisons, which can act as additional sparring for the targeted Danish R&D entrepreneurs. Moreover, it is possible to get a 70% subsidy on many of their services, which may act as a selling point since many entrepreneurs are very price sensitive.

Channels

ICDK does not use their distribution channels to the fullest potential. ICDK currently uses their webpage as their primary channel to communicate to entrepreneurs. The webpage has a very complex and intransparent structure, which makes it very hard to find information about the services.

Furthermore the text does not clearly state, what intangible value ICDK is able to provide besides from assistance. I conclude that it does not provide the image they aim for. If they aim to position themselves as partners that sells services that is going to make it easier for Danish R&D entrepreneurs to enter the Chinese market, there is a lack of alignment between what they aim for and how they actually communicate it. Since the entrepreneurs do not know the quality of the services beforehand, their representation of the Partnership Model is a part of convincing the entrepreneur about the level of quality and outcome. It is highly recommendable that ICDK considers to allocate some more resources to either update the content on their current webpage or make a separate webpage aimed specifically towards relevant entrepreneurs and stakeholders.

ICDK uses social media in terms of LinkedIn. I conclude that other channels, such as Facebook or R&D related entrepreneurial networks, would be more effective for ICDK to use. If they made a separate webpage specifically aimed at promoting the Partnership Model, they should also make a social media profile to post specifically about their services and entrepreneurship. This would be a part of giving them a valuable voice in the entrepreneurial ecosystem and enable them to influence related parties. ICDK is already hosting some events and should continue to do so in order to meet relevant R&D entrepreneurs and build relationships.

If ICDK communicate their ambitions through the key messages to R&D entrepreneurs, while at the

same time improve their distribution channels it would create a better alignment between their

internal identity, purpose and external image. The use of integrated marketing communication is

likely to provide a clearer image and create alignment between their level of ambition and

capabilities. It is crucial that ICDK continuesly monitor, measure and evaluate their efforts in order

to assess of what elements that works well, and what could be improved or revised.

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