"We really couldn't have done it without Austrade. Their support has been absolutely fantastic."
– Graham Edelsten, Chief Financial Officer, Auran Holdings Pty Ltd |
The gaming industry is global by nature, so Australian PC gaming company Auran Holdings Pty Ltd found the
world was watching as it took its fledgling steps. In 1997, the newly formed company made a global impact with its 3D game Dark Reign: The Future of War, which was released simultaneously in 58 countries and five languages. Now, the maturing Auran has partnered with Austrade to design a sustainable strategy for international expansion.
Following the release of Dark Reign, Auran spent two years developing Auran Jet, an engine for designing 3D graphics. The technology – funded by an R&D Start grant – diversified the company's product range, giving Auran the opportunity to market games as well as the software used to create them.
The company also used its new technology to develop Trainz, a recreational train simulation program so realistic that it is now used for professional train driver instruction. Trainz has also gathered an international following with over 600,000 users worldwide and a thrving online forum.
Currently Auran is finalising development on Fury, a stand-out online combat game that created much industry excitement upon its unveiling at E3 2006 and will be launched internationally in 2007.
With a wide array of products, Auran realises the importance of a planned approach to export.
"In early 2002, we sat down and created a strategy that involved mainly focusing on the markets of South East Asia," says Auran Chief Financial Officer Graham Edelsten.
"Around that time, I was speaking about our product at the World Congress on Information Technology's business forum, when I was approached by an Austrade representative from Taiwan. He told me there was a market for our product in Taiwan and explained the services Austrade could offer to help us succeed."
Auran commissioned Austrade to conduct market research in Taiwan, generating 12 potential client leads. With Austrade's assistance, Mr Edelsten arranged nine meetings with the identified companies and travelled to Taiwan for face-to-face negotiations. The result was the first of several US$100,000 deals for Auran in the country.
"Suddenly, after a few years of frustration, we have become inundated with demand and it seems as though all the effort is finally paying off," the CFO says. "We really couldn't have done it without Austrade. Their support has been absolutely fantastic."
Mr Edelsten recommends a specific recipe for overseas success:
- Start at your local Austrade office and explain your product and business strategy.
- Request market research on potential international destinations.
- Organise a sales visit to the specified region with Austrade's help.
- Have Austrade arrange for a representative who speaks the native language.
- Take advantage of Austrade's debriefings and follow-up services.
"I'd attack it that way every time," he says.
Mr Edelsten also identifies trade shows as a crucial factor in international exporting. Auran has attended the E3 technology exhibition in Los Angeles for the past seven years.
"Presence is everything at these events. Even as a small business, you have to find a way to attend. It is absolutely critical that you're out there and people are seeing you year after year. You have to go and keep going."
Auran currently has an office in Sweden with six staff assisting with the development of Fury and as the company expands, Mr Edelsten expects to eventually establish offices in Los Angeles, London, Korea and Taiwan.
"We want to be a global player and continue creating killer applications on Australia's shores and beyond."