Global business - interview with OsecIn conversation with Dr. Markus Wyss, Head of Markets & Consulting, and Dr. Christoph Peter, Head of Export and Development

 

Osec informs, advises and guides Swiss companies (primarily SMEs) in foreign markets. As a centre of expertise for the promotion of foreign trade, Osec also advises foreign investors on a move to Switzerland, and therefore makes an important contribution to securing Swiss jobs.
 

How many multinational companies with headquarters in Switzerland are there today? In what direction is this trend moving?

The volume of foreign investment by Swiss companies amounts to over CHF 800 billion. In addition to large companies, several thousand small and midsize companies are also involved. Together, they employ almost 2.44 million people abroad. However, there are also more and more multinational headquarters that run their European activities from Switzerland. In many industries, Switzerland is thus in a leading position.

In what part of the world do you see the greatest potential for grown for Swiss multinationals?

The greatest opportunities for growth undoubtedly lie in the emerging markets. There are above-average export opportunities in countries such as China, India or the Gulf states, which have a high purchasing power. Naturally the US and Germany also remain important markets. But Asia is where the action is. And this trend is likely to intensify in view of the huge debt problems in industrialised countries.

How are international Swiss companies responding to the challenges of a strong Swiss franc?

Most companies are used to dealing with exchange rate fluctuations. It's part of the export business. However, the speed in recent months has surprised everyone. Basically there are three strategies: speeding up innovation cycles, reducing costs, or looking for new markets that are less dependent on the euro or dollar and in which customers are less price-sensitive.

Asia is a growth market. What are the opportunities and risks facing multinational Swiss companies expanding into Asia?

Expansion into Asia is a must for many large companies. Many of these markets are not straightforward from a cultural point of view, and require professional preparation and a thorough market analysis. In addition, the selection of the local business partner is extremely important. Establishing the required relationships takes time and requires patience.

Are some growth markets shifting to other parts of the world?

The global economy is currently very dynamic – just think of the huge challenge presented by the debt crisis in Europe or the US. We are seeing a trend towards shifting exports to more solvent countries. Swiss foreign business policy is promoting this development through the conclusion of bilateral agreements. The forthcoming free trade agreements with India, China and Indonesia will bring many advantages for the Swiss economy and offers good opportunities.

How has collaboration within international companies changed in recent years?

The business world has become more international. International experience is being brought into management teams, executives gain valuable experience in foreign subsidiaries and therefore have their finger on the pulse of trends and developments. In the coming years, this expertise will become more and more important. Many Swiss companies are benefiting from this international culture in our country.

This is a very fast-moving business environment. How is Osec reacting to these rapid changes?

In recent years, Osec has significantly expanded its consulting services and now offers many companies professional support for their export business. We are also trying to adapt our global network to the current opportunities. For example, we recently opened new locations in South Korea and Canada. As a result, we are in an even better position to support the Swiss companies.

Who do you work with?

The Osec business network comprises 18 Swiss business hubs in all the key markets around the world, but we also work intensively with the chambers of foreign trade as well as the 20 chambers of industry and commerce in Switzerland. With its pool of experts, Osec also has around 450 international business consultants who provide support and advice to SMEs keen to export.

What is your strategy for the coming years?

For the coming years, it will be even more important to demonstrate to Swiss companies the opportunities and possibilities for growth in the future markets despite the difficult underlying conditions for export. Osec also wants to intensify communication of the attractiveness of Switzerland as a business location, so that international companies establish a base in Switzerland. This protects jobs and contributes to the further success of the Swiss economy