9. MiX Telematics goes global
“In its original form, Matrix Vehicle Tracking would have been nearly impossible to take global, as the market need is unique to South Africa. However, fleet management systems are purchased in all markets around the world.”
Vital stats:
- Starting as a consumer business in South Africa in 1996, MiX Telematics has grown into a company that operates in more than 120 countries, with an international footprint that incorporates owned-businesses, value-added resellers and service points on six continents.
- Brendan Horan is the MD of MiX Telematics (Africa) and Stefan Joselowitz is the founder and CEO.
MiX Telematics’ global expansion began with a merger with OmniBridge, a company that designs and manufactures hardware and software solutions for businesses to better manage their commercial fleets.
At the time, OmniBridge’s customers included fleet management, bus and coach, and logistics companies, and their products were sold in more than 75 countries. A further string of acquisitions, including Tripmaster (US) and SafeDrive International (Australia and UAE) gave MiX Telematics offices in key markets around the world.
A common reason that many companies fail to succeed in foreign markets is that they don’t take into account the unique local operating conditions. MiX Telematics’ localisation strategy centred on a standardised fleet management system with enough customisation options to meet the needs of clients in different countries, allowing the same product to be deployed and customised without having to do any special integrations.
“A degree of localisation is an important consideration in any expansion strategy, but you do need to find a balance. If you totally adapt your product or service to your local market and change everything on offer, you lose any cost or integration savings that you may have. On the other hand, if all services are standardised in every market there’s a high chance that local needs won’t be met,” says MiX Telematics (Africa) MD Brendan Horan.
Top lesson:
One reason that international expansion efforts fail is a tendency for companies to enter a new market with a fixed plan and major investment. A better approach is to start small. A focus on learning and developing a new, market-specific strategy that emerges over time, and is based on real data, will allow the company to determine what works in each market, ensuring sustained success. It also takes less investment, because the growth can be slower and more organic.