Performing on a worldwide (marketing) stage

Agency Sales,  Mar 2003  

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Entropy is not one of those "made-up" words.

What it can mean is "a measure of a system's capacity to undergo spontaneous change...."

A quick reaction might be "So what?" but more to the point is the fact that Entropy USA, an Elk Grove Village, Illinois-based firm walks the walk of that definition. If there's anything in this world that is changing, it's the way we conduct business. And, to meet the challenge that change presents, Entropy offers customers a new way to consider how they want to compete. The direction Entropy points them in their effort to effectively compete in a worldwide market is to look overseas, to Taiwan and China.

The more than two-decade-- old firm began rather uniquely, with a connection to the amusement industry. According to Jeff Blair, president, "Our company's founder, Henry Yeh, from Taiwan, started the business by manufacturing components for the amusement industry. From there, he and his original partners grew the business by making personal contacts in the USA, and more important, by always supplying high-quality parts within the agreement established. Years later, when I worked for a manufacturer of amusement (arcade) games, our paths crossed. We manufactured and sold games to endusers; Entropy was one of my customers in Taiwan. Mr. Yeh had already sensed the importance of a domestic presence and opened a sales office in Chicago to handle customer service. Though several good people were already established in that office, including Sales Manager Fred Kesselman, to grow the business further it was necessary to increase our USA presence, and the connection was made that I would join the company with this goal."

With that as a beginning, the company has grown today to where it supplies offshore sources for the following industries:

* Electrical and electronic products.

* Plastics and rubber.

* Machinery and automotive.

* Metal.

* Injection molding and parts.

* Vacuum forms and parts.

Based in Taiwan, Entropy International employs over 70 people to support Entropy USA's efforts. With specialists in the sales, engineering, and quality fields, the Taiwan office takes the order from the U.S. office and makes it a saleable product. Working through a strong chain of vendors - and some of its own manufacturing facilities in Taiwan and China -- Entropy International and Entropy USA can bring a project from concept through production. With a staff of 10 at the Entropy USA Elk Grove Village, Illinois facility, all individuals are called upon to provide a variety of functions from administrative, to sales, to warehouse.

Blair explains that Entropy USA is not a rep firm in the truest sense of the term. "We offer manufacturing processes to American customers through a system of vendors our Taipei office has worked to develop in Asia. We're constantly looking to develop a strong network of independent representatives that will continue to extend our interests here in the U.S."

He explains that the profile of the rep Entropy USA looks to conduct business with is an industrial/OEM firm. "We're looking for smaller firms, with personnel on their payroll with a demonstrated ability to stay in close touch with manufacturers and customers. In addition, we're looking for reps that clearly see the advantages of dealing with overseas companies."

While the growth far afield from amusement games all the way to the variety of products cited above might seem a bit unusual, as Blair explains it, the move came quite naturally for Entropy. "From the beginning of our activity in Taiwan, we located suppliers that provided standardized plastics and metal that would fit on a variety of products. Since the manufacturing processes for these products were fairly standard, it was an easy move for Entropy to identify that they could provide products for other industries."

In commenting on what Entropy does for its customers, Blair offers, "In today's globally competitive marketplace, every company must think and plan in a progressive manner to stay ahead of the competition. Some of those who have struggled in the past are now among the most respectable and profitable companies in the world. To achieve such remarkable goals, many western companies have formed reliable partnerships with offshore vendors. Taiwan, the location of many of those vendors, has long been recognized as a country with vast experience in nearly every facet of modern technology."

According to Blair, Entropy assists domestic companies in "joining the ranks of the world's leaders. Entropy International and Entropy USA are committed to rapid economic growth on both sides of the ocean. Our experience and proven reliability assists firms in bridging the gap that once was a roadblock to success for so many others."

For someone like Blair, whose first overseas venture was with Entropy, the challenges of conducting business in a different country could be rather daunting, but in this case, the movement toward "globalization" made the transition quite easy. "The first challenge you might think about is conducting business in a country that speaks a different language, but that has never been a problem. Our principals in Asia require English as a second language." He does add, however, that the task of learning the nuances of an entirely different culture was quite a learning process. "The first thing we had to do was to work hard at establishing relationships. That was very important in developing a long-term partnership.