In Part I of the Diary of an Exporter, we saw how Dr. Harrison Ofiyai founded Clinotech Inc. and established the company as a Canadian exporter of high-quality medical diagnostic kits to Turkey's health system. In late 1998, as it became clear to Dr. Ofiyai that Clinotech was flourishing in this extremely competitive market, he realized that his company's story had only just begun. Here's what happened next?

By Dennis and Sandi Jones


December 1998
We're shipping Clinotech products to distributors in Turkey! Not samples or evaluation kits, but actual exports! I was worried about product delivery earlier this year, but the solution was to have our distributors use their own Turkish freight forwarders, who have shipping associates in Vancouver. Between them, the forwarders and shippers handle everything from our loading dock onward. We don't have to get involved at all, which is exactly how I want it. I want to focus on the business and let the experts handle the logistics of shipping.

On the marketing side, I learned that some Turkish hospitals needed products my Canadian manufacturer doesn't make. I had to scramble around a bit but I found two U.S. companies who can supply the products with the price and quality Clinotech demands. Now I have three suppliers, which gives me a margin of security if we run into any problems.

Everything looks good for 1999 - I've been looking at expanding into new markets for some time now. Jordan's my first target and my second is Iran because of the strong business links to other Middle Eastern markets. I'll have to find reliable distributors before I can go ahead, but fortunately I know people in both countries and can use them as contacts.

Once underway, he and Clinotech never looked back, and now the company produces top-quality medical diagnostic products and distributes them to hospitals, medical laboratories and pharmaceutical companies around the world.

Clinotech's story is a notable example of how vision, tenacity, systematic planning and entrepreneurship can lead to export success even in the most competitive overseas markets - without extensive financial and marketing support, and even without prior exporting experience.

Early 1999
My approach to finding distributors is working well. I've used it in Jordan and Iran and am now using it Greece, Cyprus, Bulgaria, Azerbaijan and Syria. I ask my contacts to identify the medical suppliers for the local hospitals, then use that information to get a company profile of the supplier. If the profile checks out, I send them a list of Clinotech's products and ask for a business plan showing how they'd handle distribution - who the competitors are, how they'd set prices, what volumes they'd need, etc. After that, I send sample kits for evaluation, get feedback and take it from there.

I owe a lot to my doctor friends in this part of the world. Without that network, building my business would be much more difficult, if not impossible.

Summer 1999
We've been making shipments to Jordan, Syria and Iran for a few months now. We're so busy that I can't be everywhere and do everything myself, so I'm looking for some local representatives. I need business people with a solid scientific background who are willing to work part-time.

One of their first jobs will be to find more distributors because I don't want to be tied to one distributor in any one market. They can confirm that the distributors have the resources they say they do and attend medical trade shows on Clinotech's behalf. I'll ask my network for recommendations.

Late 1999
I've hired some excellent local representatives in Jordan, Iran, Syria and Azerbaijan. I also went to the medical trade fair in Turkey to support my distributors. That worked well, because other international companies often leave it all up to their distributors. I think it's important to be there to represent Clinotech so that I can talk to the doctors, buying agents and to the market's opinion leaders. I made sure I answered all their technical questions, which was valuable to them and to me. In this part of the world where relationships are so important, being there in person is essential. It shows your distri-butors that they have your support and your customers that servicing them is of paramount importance to you.

On the logistics side, I've been lucky that I've had no trouble with permits and customs in any of the countries where I'm doing business. That's because I've made sure the distributors had health ministry approvals and the proper certificates for our goods before they placed their orders. It's this kind of attention to detail that pays off.

Early 2000
We're really busy. We now have representatives and distributors in Saudi Arabia and Kuwait. People obviously think well of Clinotech, because a few distributors we've never even worked with are trying to place orders with us. We've told them that they first need to do product evaluations to establish market acceptance before we'll let them distribute Clinotech kits. That's part of building the reputation I want for the company - consistent, reliable service, with excellent after-sales support and built on a solid scientific background.

We also got our web site up and running. We've kept it simple and added elements such as giving potential distributors a Customer Profile Information section where they can tell us about themselves. This will help us evaluate their status and also identify any weaknesses, so that we can work them out as we build our business relationship.

Spring 2000
I couldn't attend the International Medical Care Exhibition in Dubai in late January, but we had a Clinotech representative there. I'm sure we'll get some business out of it.

I'm still thinking about Clinotech's production side. I can see the day when I'll want to build my own factory and produce the kits in-house. Now that I know there's a broad market for Clinotech products, that's not such a far-fetched idea.

Summer 2000
We now have two Canadian staff members to deal with invoices, shipping, freight forwarders and other non-technical customer service. Senay is overseeing them to make sure things are coordinated. She's also dealing with our contract manufacturers to help them meet the rigorous technical specifications we insist on.

I'm still overseas a lot. In this business - or in any export business, I guess - you have to constantly be there. That's important, because there are new companies and suppliers appearing every year, and you have to make sure your distributors and customers know you're behind them. Otherwise, they could start talking to someone else. Even in Turkey, where we're well established, I keep reminding people about Clinotech - I keep the advertisements going, I make sure our distributors attend both the local trade shows and the international trade shows, and I always make sure they have the latest company information.

Fall 2000
Two years in business now, and Clinotech is still growing. I'm looking at even more markets, and the company's being approached by a lot of potential distributors. The upward trend is clear and I'm pretty convinced that manufacturing our own products will have to be part of Clinotech's future, especially now that sales volumes are starting to justify in-house production. That may not happen for a year or two, but it's certainly on the horizon!

Stay tuned for Part 3 of Diary of an Exporter, coming in our Summer Issue. To learn more about Clinotech, visit www.clinotech.com .

Photo: Martin Lipman