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| Tim Harcourt, Chief Economist,
Australian Trade Commission |
Exports
Rugby lessons for business
What has scoring
tries at the Rugby World Cup 2003 finals got in common with Australian business?
Are there lessons from Australia’s success on the field that can be
applied to our exporters?
Going global
Rugby has gone professional in recent years, and has used its marketing
appeal as a global sport. The professionalism of the World Cup and the
development of the Tri-Nations and Super 12 competition is part of this
story. Regular open competition between nations allows teams to benchmark
themselves against the world’s best, learn new skills, and develop
their own core strengths and capabilities.
Australian businesses that go global lift their standards
in the same way. Austrade research shows that exporting companies are,
on average, more profitable than their non-exporting counterparts. They
also have better growth prospects, and more highly-paid, highly-skilled
and highly-productive staff. The bottom line is that if you have the right
attributes, going global pays off. The international stage brings global
returns to Rugby teams and exporters alike.
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| Ready to party: inbound tourism
for RWC 2003 is an export gain |
Coach class
The second Rugby World Cup lesson for trade is the importance of coaching.
Many northern hemisphere sides have employed antipodean coaches of world-class
quality. Investing in skills, training and team building, and having the
right preparation for the conditions at hand, are important to ultimate
success.
In the same way, Australian exporters tend to invest heavily in education
and training to boost the skills of their employees. They also use a high
degree of teamwork in their workplace practices, and undertake extensive
preparation through market research and R&D. The legendary methods
of 1999 World Cup winning coach Rod Macqueen in both Rugby and business
are testament to this crossover of skills and techniques.
Networking
Thirdly, there’s the importance of networks and resources. It has
been important for Australian Rugby to build strong links with Rugby con-federations
around the world, and for Australian players to have regular contact with
other talented officials and players.
| Beer sales up!
What are the economic benefits of Rugby World Cup 2003?
There are both direct and indirect effects to consider. In terms
of direct benefits, the hosting of RWC 2003 is worth A$800m-A$1bn
to the Australian economy, according to the Australian Rugby Union,
based on the expenditure of international and interstate visitors,
and also on participating teams’ transport, logistics and
accommodation.
Of course, some economists prefer to examine value-added measures,
given that some expenditure on Rugby will ‘crowd out’
expenditure on something else. But even conservative estimates show
that there are ‘net’ benefits from holding a major sporting
event like Rugby World Cup 2003.
For exports, benefits accrue in terms of sponsorship, media broadcast
rights, and tickets sold to overseas Rugby fans.
However, the main export benefits come in terms of inbound tourism.
Recent estimates show that there will be 40,000 or more tourists
visiting Australia for the Cup alone. This will mean fuller hotels,
sales of airfares (domestic and international), and no doubt a large
boost to domestic beer sales!
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In the same way, exporters who get access to international
networks are able to benchmark themselves against the world’s best,
and these companies tend to be more successful over time. Austrade provides
that network for small companies new to export.
Rugby Business Club Australia was itself established to
leverage the business networks tied alongside the Rugby World Cup, organising
business briefings and networking sessions around Cup matches. Austrade
re-search shows that 50% of new exporters enter world markets ‘accidentally’,
through a chance meeting or other ‘random’ events. Meeting
on a plane or at social events can lead to international business deals
– and many occur at the time of major sporting events.
Rugby World Cup 2003 rates as the third largest sporting
event in the world, after the Olympics and the Soccer World Cup. Twenty
countries will vie for the Cup in 48 matches across 10 Australian capital
cities and regional centres over six weeks of competition. An estimated
40,000 international visitors will come to Australia to watch the Tournament
and a cumulative four billion will be tuning into televisions around the
world. Rugby Business Club Australia is designed to allow Australian ex-porters
and potential exporters to meet international clients and customers.
So there you have it. Australian business and Rugby World
Cup 2003 do share common characteristics. The main lesson is that in exporting,
as in Rugby, good coaching, intensive training, preparation, strong networks
and resources – and having a good grasp of your bargaining capacity
in the global market place – can earn you rewards that match your
hard work and talent. So let’s hope for a good competitive Rugby
World Cup 2003... with a Wallabies victory!
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