Exploring the West Coast of North America - BNA
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Exploring the West Coast of
North America
A research on how to enter the North American architectural
market with the Innovators of BNA International
Royal Institute of Dutch Architects – BNA
BNA International
Caroline Gentner
558119
June 17th 2018
Amsterdam, NetherlandsStudent: Caroline Gentner
Student number: 558119
Course: Graduation 2018
Study programme: International Business and Languages
Faculty: Economy, Management and Law
Institute: HAN University of Applied Sciences
Graduation internship
Company: Royal Institute of Dutch Architects (BNA)
Jollemanhof 14
1019 GW, Amsterdam
Chamber of Commerce number: 40531539
Duration of internship: 5-02-2018 – 12-07-2018
Supervisor HAN: Edwin Vermeulen
Supervisor BNA: Mathias Lehner
Examiner: Ids van Dussen
Second assessor: Marloes Vollenbroek
Date, place: June 17th, Harmelen
1Preface
Before you lies the dissertation on how to enter the North American architectural market with the
members of the BNA (Branchevereniging Nederlandse Architectenbureaus). It has been written to
finalise the graduation process, which includes an internship at a company, of the study programme
International Business and Languages at the HAN University of Applied Sciences. The report has
been written from February to June 2018.
The report has been written at the request of the BNA (Branchevereniging Nederlandse
Architectenbureaus), where the internship took place. Based on the yearly report of the team
‘Internationalisation’ Creative Holland, China, Germany and the United States are promising markets
when it comes to the Dutch Creative Sector. China and Germany have already been explored by
multiple Dutch architects, therefore, the opportunity of seeking out opportunities in the United States
presented itself.
The extensiveness and thoroughness of the research has proven to take more time than expected.
Unfortunately, getting in contact with respondents at possible partners (architectural firms in San
Francisco) in the chosen market was close to impossible, which has made the field research of this
report very narrow. Contacted respondents often did not take the time to even respond or responded
that they were not authorised to give certain information or any information at all. Having tried through
multiple ways of communicating (LinkedIn, the director of the BNA, e-mail), have failed to show any
results. However, no result is a result as well. Contrary to this, agencies like the AIA SF, the SF City
Planning Division, RVO, and others were very cooperative and interested in the cause.
I would like to give special thanks to my supervisors Mathias Lehner and Edwin Vermeulen for their
guidance and advice during the process. As well as my mother, Linda Gentner, for her input and
feedback.
I hope you enjoy your reading.
Caroline Gentner
Amsterdam, June 14, 2018
5Management summary
The goal of this report is to give the group of members, hereafter Innovators, of the BNA insights in
how to enter the North American market with their architectural services, within the next three years.
BNA (the Royal Institute of Dutch Architects) is an association based in Amsterdam. Their goal is to
support architectural firms with their practices on all levels. BNA International is a separate division,
that supports Dutch architectural firms who want to take their practice abroad. This research focuses
on the group of members (Innovators) of BNA International that have indicated that they seek
opportunities on the North American continent.
The Innovators consist of 6 architectural firms, who are all operating on a national and international
level. Together, the group hosts over 200 architects who are specialised in sustainable building,
building for a higher quality of life, architecture, urban planning, and landscape planning. The group is
known for its award-winning design, a hands-on mentality, open to innovations, and working closely on
the 6 unique USPs of Dutch architecture (water management, infrastructure, innovative housing,
urban planning, transformation and complex assignments).
To choose the best region within North America for the Dutch architects to enter the market with, the
choice of East of West America has been made in the Graduation Proposal. From there, five cities
were chosen to further analyse. After two different filters, San Francisco came out as best and most
promising market on the West Coast of North America. San Francisco offers opportunities for Dutch
architects on several levels. Though the city has a strict planning and regulation system, it is in need
of more affordable housing and buildings. The culture in the city is different from the rest of the US,
since it is known to be a more free and diverse city, with a hard-working but laid-back mentality at the
same time.
Internal and external analyses show multiple strengths, weaknesses, opportunities and threats. The
most viable strengths and opportunities are the fact that the Innovators value the whole environment
and quality of life, the support of the unique Dutch USPs, and the value of sustainability and working
with BIM/BREEAM/ and LEED. As well as the most requested projects in San Francisco being aligned
with the Dutch USPs, the high (affordable) housing shortage, and the number of potential clients or
partners. On the contrary, weaknesses and threats have also been determined. Weaknesses for the
Innovators are that they lack knowledge of the foreign market as well as that they lack a network to
work with, and that sustainable design can be costly (time/resources/money). Threats in San
Francisco are that one cannot design without a licensed US architect, the high construction costs and
labour shortage, and the strict city planning.
These SWOTs have been put into a confrontation matrix, of which two strategic options have been set
up. These two strategic are the following:
SO1: The Innovators should use their advantage of valuing the entire environment and quality of life in
designs to enter the market in San Francisco where there is an increasing importance of the human
factor in buildings, the quality of life and green building. As well as an open, diverse and hard-working
culture. The number of potential clients and partners makes the market as well as the members
attractive and accessible
SO2: The Innovators should use the advantage of being known for the six unique Dutch USPs to
tackle the high (affordable) housing shortage in the city, use their knowledge in designs for the most
requested projects. This can be done since the culture in the city of SF is open, diverse and hard-
working, as well as the number of potential clients and partners for and with which the Innovators can
work.
Analysing both options according to the SFA model, the second option showed to be the most
promising option, and has therefore, been chosen to continue with. After this, the entry decision model
6has been filled in to choose the best entry mode for the Innovators. This proved to be an intermediary
mode of a strategic alliance/partner.
Based on these choices a marketing strategy has been set up. This results in different strategies for
B2B and B2C. The promotion of this marketing strategy showed to be most important, as the
Innovators are not yet known in the foreign market. This goes further in the marketing communication
mix, where promoting the Innovators is shown. This promotion can be done by visiting events in San
Francisco and contacting larger institutions such as the AIA SF, to generate brand awareness.
Baring these promotional steps in mind, an implementation plan has been set up for the next three
years. This plan is divided in four phases: What do we offer? What does the foreign market offer? How
do we create brand awareness? How do we enquire work? Within these steps several actions to
achieve these phases are described per quarter for three years. Taking average costs in mind for
these different steps, the average costs for entering the new market in the first year will be €18.000, in
the second year €17.900 and €31.100 in the third year. These costs can differ per firm and the firm
can choose whether they take all the described steps or take more or less steps. Therefore, this
financial plan is merely an indication of costs that could occur.
If these phases are implemented by the Innovators, it brings along certain organisational changes.
Though these aren’t major, they do have to be taking in mind. Organisational changes at the
Innovators can be changes such as appointing an employee with a new title suitable to be responsible
for the new business in San Francisco. This employee has to be able to speak English and be made
aware of all the differences when it comes to doing business in San Francisco. Should it occur that no
one at the firm is qualified enough, the firm has to reach out to people who are. The employee should
be aware that its new position brings along frequent visits to San Francisco and he or she should not
forget that the new business is not its sole responsibility.
As far as organisational changes for BNA go, these will not be major either since BNA International is
already operative. However, there are a couple of aspects where BNA can aid the Innovators in. BNA
can arrange trade missions together with RVO and hereby strengthen its own position as well as that
of the Innovators. It can also host a stand at fairs such as the San Francisco Design Week. This is
already something BNA does in Germany at the Expo Real. In doing so, BNA can again strengthen
the position of Dutch architects as well as that of the Innovators specifically. Lastly, BNA can establish
a relationship with parties such as the AIA SF to promote the Innovators on a greater level by
addressing them through the ‘Royal Institute of Dutch Architects’.
To conclude the research, this advisory report shows many opportunities in the market of San
Francisco, though it can be a tough market to enter. It is advisable to recognise the differences and
similarities and be aware of all aspects of doing business. Finding the right partner will play a big role
in this, but it can be a very profitable market for Dutch architects.
7Table of Contents
Ephorus ............................................................................................................................................. 2
Assessment form 3
Agreement form HBO Kennisbank 4
Management summary .................................................................................................................................. 6
Introduction ................................................................................................................................................... 12
Company description .............................................................................................................................. 12
Research question .................................................................................................................................. 12
Research objective .................................................................................................................................. 13
Definitions ................................................................................................................................................ 13
Restrictions, Constraints and Scope ...................................................................................................... 13
Restrictions ........................................................................................................................................... 13
Constraints ............................................................................................................................................ 13
Scope ................................................................................................................................................ 14
Changes in the Research Proposal ....................................................................................................... 14
Reflections on research methods........................................................................................................... 14
Desk research ..................................................................................................................................... 14
Field research ..................................................................................................................................... 14
Reliability ............................................................................................................................................. 15
Representativeness ............................................................................................................................ 15
Validity ................................................................................................................................................ 15
Theoretical framework ................................................................................................................................. 16
1. Which cities on the West Coast would fit the members best to export their service to?................ 16
1.1 Country Analysis Approach by Leeman ............................................................................. 16
1.2 Country Selection model of Veldman .................................................................................. 16
1.3 Comparison and conclusion ................................................................................................. 17
2. Which model in literature about cultural differences would prove most suitable to show the
cultural differences between North America and the Netherlands? .................................................... 17
2.1 The Six Cultural Dimensions by Hofstede .................................................................................. 17
2.2 The Seven Dimensions of Culture by Trompenaars and Hampden-Turner............................. 17
2.3 Hall’s high and low context cultures ............................................................................................ 17
2.4 Comparison and conclusion ........................................................................................................ 18
3. How can the marketing mix be implemented best for the Innovators? ........................................... 18
3.1 7P’s of Booms and Bitner ............................................................................................................ 18
3.2 4 C’s ............................................................................................................................................. 18
3.3 SIVA Model ................................................................................................................................... 19
3.4 Comparison and conclusion ........................................................................................................ 19
1. Internal analysis ....................................................................................................................................... 20
1.1 BNA .................................................................................................................................................... 20
1.2 Members that are interested in the North American market .......................................................... 20
1.3 The Innovators .................................................................................................................................. 20
8Persona ............................................................................................................................................... 21
1.4 Dutch architecture ............................................................................................................................. 21
1.6 Strengths and weaknesses of the group ......................................................................................... 22
2. City analysis ............................................................................................................................................ 22
3. External analysis...................................................................................................................................... 22
3.1 The macro environment of San Francisco ...................................................................................... 23
3.1.1 Demographics............................................................................................................................ 23
3.1.2 Economics ................................................................................................................................. 23
3.1.3 Social.......................................................................................................................................... 23
3.1.4 Technological............................................................................................................................. 24
3.1.5 Ecological ................................................................................................................................... 24
3.1.6 Political ....................................................................................................................................... 25
3.2 the meso environment of San Francisco......................................................................................... 25
3.2.1 Customer Characteristics ......................................................................................................... 25
3.2.2 Industry Characteristics ............................................................................................................ 27
3.2.2.1 Architectural service industry ................................................................................................ 27
3.2.2.2 Construction service industry ................................................................................................ 28
3.2.2.3 Infrastructure industry ............................................................................................................ 28
3.2.3 Competitor Characteristics ....................................................................................................... 29
3.3 Architecture in the Netherlands versus San Francisco .................................................................. 31
3.3.1 Architectural process in the Netherlands ................................................................................. 31
3.3.2 Architectural process in San Francisco ................................................................................... 32
3.4 Legal aspects of architecture in San Francisco .............................................................................. 32
3.5 Opportunities and threats ................................................................................................................. 33
4. Culture in San Francisco ......................................................................................................................... 34
4.1 Brief culture of the Netherlands ....................................................................................................... 34
4.2 Brief culture of the United States ..................................................................................................... 35
4.3 Culture in San Francisco .................................................................................................................. 35
4.4 Conclusion ......................................................................................................................................... 36
4.4.1 Opportunities and Threats in cultural differences ................................................................... 37
5. SWOT ....................................................................................................................................................... 38
5.1 SWOT ................................................................................................................................................ 38
5.2 Confrontation matrix.......................................................................................................................... 38
6. Entry strategy ........................................................................................................................................... 39
6.1 Strategic options ............................................................................................................................... 39
6.1.2 Strategic option selection.......................................................................................................... 40
6.2 Entry strategy .................................................................................................................................... 40
7. Marketing.................................................................................................................................................. 41
7.1 Market Segmentation........................................................................................................................ 41
7.1.1. Business to Consumer ............................................................................................................. 41
97.1.2 Business to Business ................................................................................................................ 42
7.2 Market Targeting ............................................................................................................................... 42
7.2.1 Business to Business ................................................................................................................ 42
7.2.2 Business to Consumer .............................................................................................................. 42
7.3 Market Positioning............................................................................................................................. 42
7.4 Value Proposition .............................................................................................................................. 43
7.5 Marketing Targets ............................................................................................................................. 43
7.5.1 Business to Business ................................................................................................................ 43
7.5.2 Business to Consumer .............................................................................................................. 43
7.6 Marketing Mix .................................................................................................................................... 44
7.6.1 Product ....................................................................................................................................... 44
7.6.2 Price ........................................................................................................................................... 44
7.6.3 Place........................................................................................................................................... 45
7.6.4 Promotion................................................................................................................................... 46
7.6.5 People ........................................................................................................................................ 46
7.6.6 Physical evidence...................................................................................................................... 46
7.6.7 Process ...................................................................................................................................... 46
8. Marketing communication ....................................................................................................................... 47
8.1 Target Group ..................................................................................................................................... 47
8.2 Marketing Communication Goals ..................................................................................................... 47
8.2.1 Attention ..................................................................................................................................... 47
8.2.2 Interest ....................................................................................................................................... 47
8.2.3 Desire ......................................................................................................................................... 47
8.2.4 Action ......................................................................................................................................... 47
8.3 Marketing Communication mix......................................................................................................... 47
8.3.1 Networking ................................................................................................................................. 47
8.3.2 Promotional materials ............................................................................................................... 48
8.3.3 Website ...................................................................................................................................... 48
8.3.4 Political economical trade missions ......................................................................................... 48
8.3.5 Awards and Contests ................................................................................................................ 48
8.3.6 Press releases ........................................................................................................................... 48
8.4 Implementation .................................................................................................................................. 48
8.5 Budget ................................................................................................................................................ 48
8.6 Monitoring .......................................................................................................................................... 48
9. Financial and legal aspect....................................................................................................................... 49
9.1 Financial aspects .............................................................................................................................. 49
9.1.1 Implementation plan..................................................................................................................... 49
9.1.2 Financial plan ................................................................................................................................ 50
9.2 Legal aspects .................................................................................................................................... 51
9.2.1 Contracts ...................................................................................................................................... 51
109.2.3 Liability ......................................................................................................................................... 51
10. Organisational consequences .............................................................................................................. 52
10.1 Innovators ........................................................................................................................................ 52
10.2 BNA .................................................................................................................................................. 52
11. Conclusion and recommendation ......................................................................................................... 53
11.1 Conclusion ....................................................................................................................................... 53
11.2 Recommendations .......................................................................................................................... 54
Bibliography .................................................................................................................................................. 55
Appendix ....................................................................................................................................................... 64
Appendix 1: Graduation Proposal .......................................................................................................... 64
Appendix 2: Country Analysis Approach ............................................................................................... 87
Appendix 3: Country Selection Model by Veldman............................................................................... 88
Appendix 4: The Six Cultural Dimensions ............................................................................................. 89
Appendix 5: The Seven Dimensions of Culture .................................................................................... 90
Appendix 6: Hall’s High and Low Context Cultures .............................................................................. 92
Appendix 7: 7Ps of Booms and Bitner ................................................................................................... 93
Appendix 8: 4Cs Marketing Mix.............................................................................................................. 93
Appendix 9: SIVA Model ......................................................................................................................... 94
Appendix 10: The Innovators.................................................................................................................. 96
Paul de Ruiter Architects .................................................................................................................... 96
UNStudio ............................................................................................................................................. 96
Arcadis Nederland .............................................................................................................................. 96
Mecanoo architects............................................................................................................................. 97
MVRDV ................................................................................................................................................ 97
NEXT Architects.................................................................................................................................. 98
Appendix 11: Persona six members ...................................................................................................... 98
Appendix 12: City analysis...................................................................................................................... 99
Filter 1: ................................................................................................................................................ 99
Filter 2: ................................................................................................................................................ 99
Appendix 13: Top 20 Architectural firms San Francisco .................................................................... 100
Appendix 14: Culture in San Francisco Survey Questions + Answers.............................................. 101
Appendix 15: Confrontation Matrix....................................................................................................... 106
Appendix 16: SFA Model ...................................................................................................................... 107
Appendix 17: Factors affecting Entry Mode decision ......................................................................... 110
Appendix 18: Contact SF Planning Department ................................................................................. 112
Appendix 19: Implementation plan ....................................................................................................... 112
Appendix 20: Financial cost overview.................................................................................................. 114
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