An occasional newsletter and community round-up, shining light on the art and science of powerful market positioning.
Hello there my friend
At winter lands and brains are wrapped in beanies, I’m dreaming of warmer climes and going global this month. The strength of our economy relies on more of us getting up and getting out of New Zealand. Yet it’s not as straightforward as that. Despite the stories we tell ourselves about export success, only a tiny fraction of NZ companies actually scale internationally.
I’m planning on debating this topic in more detail with this wonderful community at our next drop-in clinic on 12 August – more on that at the end of this email. If it’s on your mind too, book yourself in here – I’d love to have you in the mix.
Stay warm. I’ll see you all out there,
Andy
Hope is not a strategy
I was asked recently to proffer my favourite piece of advice for young New Zealand entrepreneurs with global ambitions. Slightly chocked by the harsh reality of appearing old, I mentally scrambled for something sage-like to say. “Hope is not a strategy” I stammered, regaining some composure.
Later, on idle reflection, I pondered how much popular wisdom is passed around that is actually really bad advice.
The problem with 'build it and they will come'
My personal bugbear is “build it and they will come”. For leaders of companies opening new global markets, it is too often interpreted as “build it and hope they come”.
It is the assumptive “they” that irks me in this quote. “They” are the fabled cashed-up customers in premium global markets. Eager to pay more for what New Zealanders sell them, because of the quality of the landscapes and stories in our promotional marketing. The more we show them who we are, the more we’ll make them want us. This global sales game must be easy, right?
Well... yea nah. Global is hard.
Where are our exporters?
Let’s look at the numbers:
NZ earns ~$99B from exports annually.*
91% of that value comes from just 625 companies.*
Only 1 in 12 businesses earn any international revenue at all.
While our domestic market is sub scale, but our global brand remains strong, that’s a staggeringly small number who venture overseas to grow. Plainly we are missing an opportunity.
It’s not (just) an export problem
Many are quick to blame the tyranny of distance, and I agree that they have a point. Our little slice of paradise is a very long way from our major markets, but I don’t buy that excuse. For example. Our tech exports are frictionless, but that sector accounts for less than 9% of our international earnings.
Frankly, this issue is old news. Every new government rediscovers this “hidden problem” and makes it their priority to fix. Taking the same old resources and spinning for a different shade of political argument, but little changes apart from the org-chart at NZTE. I spend much of my time positioning companies in new global markets, so perhaps I’m particularly sensitive to political rhetoric. But I’ve listened to this government’s repeated call to lift our export game and I have a feeling we may be fixated on the wrong problem.
I don’t think we have an “export” problem, we have a "scaling" problem.
Shifting from 'export' to 'scale'
Internationalisation is often the only viable way for NZ businesses to scale. But we imagine their needs solely through the tactic—"open a new market"—not the strategy—"scale sustainably".
International growth is a critical step to scale, but by conflating the two, we miss the opportunity to offer leaders the best support and resources they need.
Shifting our own mindset from doing “export” to delivering “scale” is a radical first act as it changes the way we perceive the barriers to success. Nailing your first global market should be a right of passage for every founder or director.
So through this new lens, can we more clearly see what leaders need to take this step? Is it ambition, opportunity, skills, capital or even culture change?
If we’re really going to change the fortune of our country, we first have to change the way we each see the world. Putting this fresh perspective into action is a responsibility that we all share.
Bring it on.
*$98.9B, YE Sep24, Quarterly MFAT data
When scale gets stuck: the XV story
So what does it look like when a business shifts gears and starts scaling intentionally?
This case study with XV, a global sports innovation and investment firm, shows exactly that.
They went from a slow, uncertain capital raise to confidently going to market with a $55M offer, thanks to sharper positioning, targeted messaging, and a reframed strategy.
Whether you're facing a specific positioning challenge or just want to learn more, this interactive session is your chance to ask questions, share your experiences, and hear how others are approaching their positioning.
I’ll hold the space, but the real magic comes from the conversation. You’ll get just as much from the ideas, challenges, and reflections shared by others.
If you know anyone who might enjoy this read, feel free to pass it on or suggest they sign up here.
3Green is a Commercial Strategy Practice in Aotearoa, led by B2B market positioning expert Andy Mitchell.
If you’d like to discuss your business’s market position, schedule a free 15-minute call with me. I’d love to hear what’s happening for you and explore how I can help.
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