Chinese-based commercial drone manufacturer MMC has increased their business by over 500% in the last two years. Since introducing the first hydrogen fuel cell drone last year, the company’s orders have skyrocketed to over $10 million. Their power line stringing solutions, tether systems, and unique plug and play payload system are moving towards the top spots in the commercial markets. How do they do it?
All Business is Local
Like politics, says author John Quelch, “All Business is Local.” Nobody understands this better than a global business – and MMC has modeled their growth on the concept. MMC does not only sell products overseas, they’ve established joint venture factories in more than five countries. These partnerships, says MMC, run deep.
“We rely on open, cooperative and local partnerships to expand,” says Leo, Liu, MMC’s CEO, “MMC’s deep cooperation with our partners has allowed us to grow much faster – we count on partners for their understanding of local needs and markets. It allows us to develop better technology and better service for our customers.”
MMC’s cooperative agreements don’t stop at product distribution. Partnerships with their joint venture factories include technology transfer of drone assembly and testing and hydrogen fuel cell manufacturing. They cooperate with partners on product development to meet specific customer demands, raw material cost controls, and navigation of local regulations. Bringing production local means that MMC can develop understanding of local industries: from government and law enforcement to commercial applications like oil and power. Understanding local needs and barriers to entry means that the company can provide targeted service offerings for customers, appropriate for their application and service requirements.
The Enterprise Advantage
While MMC’s neighbor in Shenzhen, DJI is the undisputed leader in recreational drones, the common distribution method used by DJI and other mass market products doesn’t translate as well to the commercial market. For industrial, military and police drone customers, companies need to take an enterprise approach to products and services. Joint partnerships with manufacturing facilities means that MMC can offer the customization of their solutions and service offerings – offered in a culturally appropriate format – that large enterprise expects.
The Challenge of Cooperation
Engaging in deep local partnerships is not easy – but it’s worth it. Opening the doors to the development process and engaging in deeper cooperation present challenges. Technology transfer is never simple; customization can be costly. But the results demonstrate the benefits that can be achieved from bringing your business to your customers.
“We intent to continue to go our own way,” says Leo, “We plan to establish more joint venture factories and build strong local industries. Cooperation with local businesses has paid off in all areas: from research and development to after-sales support.”
MMC is a global leader in the manufacture of commercial drones. MMC drones are used around the globe in industrial and military applications including surveillance, security, inspections, power line stringing, mining and others. For more information, please visit www.mmcuav.com or e-mail firstname.lastname@example.org