The most dramatic change witnessed in the business world over the last few decades has been the exponential increase in the range of both products and services in supply. At the same time, the economy has undergone a process of globalisation, which has obliged companies to internationalise their activities. In turn, this internationalisation has caused a multiplier effect, prompting a veritable explosion of supply “from all across the world, all over the world”.

In this setting, where survival alone is no mean feat, companies and products “travel” from country to country with their intrinsic merits and skills, but taking with them a permanent point of reference, the “Made in ...”, understood as the products manufactured and services rendered by the brands associated with a country, regardless of their geographical origin. Therefore, the perceptions which international customers may have of “Made in ...” are critical; in terms of international competitiveness, they can be an added value or a dead weight.

And, in a new and far more complex context, it is no longer enough simply to “know the customer” and gear their supply solely towards meeting his/her requirements. Any competitor in any country worldwide is able to do so, if they seriously set their mind to it. Anybody can access this information.

The goal is that it should be the customer who “knows what we have to offer”, who is able to distinguish and prefer us amidst the plethora of competitors bombarding the same potential customers, with each offer claiming that it is “the best”. In this day and age, therefore, an efficient competitive strategy must aim to secure a preferential positioning in the minds of current and potential customers. And, accordingly, the question of “Made in ...” plays a pivotal role in companies’ competitive edge.

Countries that have managed to create positive perceptions have competitive advantages that give added value to their products and services. However, when no perceptions exist, or they are negative, the penetration or permanence of the goods or services they offer face a barrier that may be harder to overcome than a merely technical barrier.

Nevertheless, the role played by “Made in ...”may not be the same in every sector. Its influence will be either positive or negative depending on the line of products or services being promoted. No country offers an “umbrella brand” able to cover the full spectrum of possible activities.

If we look at the auto sector, we could mention the following examples: “Made in Germany” is associated with top of the range vehicles; therefore Mercedes Benz, BMW, Audi, Porsche and even Volkswagen are successful, as they fit in with the perceptions of their country of origin.

“Made in Korea” is associated with low range vehicles; which is why Hyundai and Daewoo are sold on the basis of price. (Although Korea is a good example of the major risk entailed in competing by price alone)

“Made in Japan” is associated with vehicles with an excellent price/ quality relationship, and hence the success of Toyota and Honda.

“Made in Sweden”: thanks to Volvo, Sweden is associated with safe cars, and the other Swedish brand, SAAB, also benefits from this. None of these countries, however, is considered to be a leader in the IT world, for example, or in fashion and apparel or food and beverages.

If we compare the countries with business enterprises, it could be said that “Made in ...”is the reference point for distributors, integrators and opinion makers – the “corporate brand”. In the same way that brands of products, services and/or companies are reference points for final buyers.

The key is for the perceptions people have of brands’ and companies’ to be tuned to those of “Made in …”. In this way, a synergy is generated that produces a multiplier effect.

Today, a country’s brand has increasingly become a strategic concept strongly linked to the capacity of its products and services to penetrate other economies: those in which “Made in ...” brings added value.

Ever more frequently, a country’s external image is associated with its position of power in the world – basically, its economic power. Factors unrelated to economics, such as institutional and political, cultural and social factors have a practical application if they have an impact on the well-being of the population, i.e. if they create wealth. In other words, their impact depends on whether they manage to exert a direct or indirect influence on the economy.

Being aware of this situation, the leaders of public and private institutions, together with Spanish society in general have no choice but to work towards creating differential and positive perceptions of Spain to be projected worldwide.

Indeed, Spain’s ties are becoming increasingly more relevant in sectors that have been traditionally less associated with its image, such as telecommunications, financial services and energy, particularly renewable energies, even fashion. Nevertheless, the strongest associations continue to be with the leisure sector, as reflected by tourism, cultural and historical heritage, and gastronomy.

However, image is the perception of reality, it is not reality itself. Spain needs to capitalise on the tools at its disposal in order to reconstruct its “Made in Spain”. In the following pages, we a brief overview will be made of a series of factors typifying Spain’s presence on the international scene (mainly economic factors, but also political and cultural ones), although it is not the intention to make a precise assessment of “Made in Spain”. The aim of this book is to produce an inventory of the objective resources available for Spain to make its mark on the world.

There is no disputing the fact that over the last 40 years, Spain’s performance in both the European and world context has been exceptional. The following relevant facts are evidence of this:

Spain is one of the countries which has performed most strongly and most positively over the last 25 years, making it now one of the most open and prosperous countries in Europe.

In recent years, Spain has been at the lead in the economic growth of the largest Eurozone countries, having consolidated its macroeconomic balances with substantial falls in real interest rates, external debt, inflation and unemployment.

Latest projections by the IMF and the OCED indicate that in the years to come, the Spanish economy will continue to grow at a much faster pace than the other EU-15 countries.

Spain’s history, cultural ties and legacies, plus its enviable geo-strategic position, make it an ideal link between Europe and Latin America, North Africa and the Middle East. In fact, Spain is a “bridge” for reaching over 1 billion potential customers.

Spain is the natural interface between Europe and Latin America by virtue of its shared language and the far-reaching cultural and business relations. Spanish companies have also carved out important positions in Europe, the US and Asia, particularly in China.

Spanish multinationals are internationally-recognised leaders in infrastructures, utilities, telecommunications and banking. The UK’s main airports are managed by a Spanish company, included in this book, which is in turn the leading company worldwide in its sector.

The ports of Algeciras, Valencia and Barcelona are close to and have excellent communications with Africa and the Middle East, leading to extremely smooth trading relations with these regions.

According to UNESCO, Spain ranks second in terms of “World Heritage” sites, accounting for 37 (Italy has 39) of the total of 788 worldwide. These and other facts have pushed Spain to the top spots in many rankings, giving it an extremely significant position in the global context:

Data Indicating Spain’s Global Role

World’s 8th largest GDP.
8th ranked economy of OECD countries.
6th largest exporter of Commercial Services.
16th-ranked exporter of goods.
4th-ranked exporter of books.
6th largest international investor.
2nd largest investor in Latin America, after the US.
World’s leading olive oil producer and exporter.
World’s 3rd ranked wine producer and exporter.
World’s leading sparkling wine (méthode champenoise) producer and exporter worldwide.
3rd largest vehicle manufacturer in Europe, after Germany and France.
2nd most popular tourist destination worldwide (60 million tourists/year), after the US.
3rd ranking footwear producer and exporter worldwide.
Ranked 2nd in life expectancy, behind Japan.
Ranked 5th safest OECD country, after Iceland, Luxembourg, Japan and the UK.

Sources: World Bank Development Indicators 2006,World Trade Organization (WTO) Report 2006, Asociación Nacional de Fabricantes de Automóviles (2006),World Tourism Organization (WTO) Report 2006,World Health Organization (WHO), 2006.

A country’s solvency is a fundamental part of the image it projects to the world, and, in this respect, Spain’s joining of the European Union has not only helped to consolidate the Spanish economy, but has also led to acceleration in its internationalisation process.

Unfortunately, the reality shown by these data is not reflected in the perceptions that world opinion makers have of Spain.

Annually- released country rankings, ranging from that made by the World Forum’s for the annual meeting in Davos to those of Multinational Consulting Firms, clearly show that, as far as economic and business matters are concerned, their “perception” falls far short of the reality.

By and large, Spain is seen as the favourite destination by Europeans for their holidays or short breaks. At most, Spain is credited with some weight in the leisure sector, but not in the field of business.