We must continue to analyze the differences in each global environment and adapt to these differences. –Russell Lewis

Lewis’ advance was a spray-on polyurethane liner. The liner’s most obvious use is found in truck beds, where drivers need a protective, watertight covering. The liner could also be applied to many other surfaces to protect them from impact and corrosion–but only if Lewis opened new markets for the product. Today Rhino Linings sells to the automotive, military and industrial sectors through 1,400 independently owned dealerships in more than 50 countries. The company’s annual sales have reached more than $100 million in less than 10 years.

Rhino Linings manufactures equipment and products in San Diego and Louisiana and sells them to its dealers around the world. The company and its dealers are almost wholly symbiotic.

RUSSELL LEWIS, founder of San Diego—based Rhino Linings, realized the value of overseas expansion.

When he began to formulate a plan for expanding internationally, Lewis found that he already had some insight. He worked in various countries during his summer breaks from school, and even that limited exposure led him to develop a familiarity with business and cultural issues.

But when Lewis initially ventured overseas with Rhino Linings, he stumbled out of the gate. He first tried to export a traditional dealer-distributor model, he says. "This did not work. They would sell one product, but not really support it and get the follow-up business. We found it was not enough to sell [them equipment] without providing ongoing support."

Lewis had to shift his American way of thinking about how products and services are marketed to empower his overseas dealers. "We learned that the U.S. is very transactional; people don’t need to know us to buy our product," he explains. "In other countries, sales are more relationship driven; they don’t buy until they know you. We had to learn how to build relationships in these countries. It has taken a while for us to learn how to do this, but we are stronger for it now."

RHINO LININGS USA Challenges: To expand a polyurethane liner business and create a network of independent dealers who can address marketing and product needs in many nations.

To build the Rhino Linings brand, Lewis works with his foreign dealers to incorporate local advertising methods. Without access to American-style mass media in smaller countries, Lewis and his executives work carefully to tailor the marketing messages used for each locality. "The United States has many large pickup trucks, but this market does not exist in some countries in Europe," Lewis explains. "There we have to focus on larger commercial vehicles. Our partners help us become known in each area, and help us select a strategy that works. Now that we have learned how to do this, we can accelerate the process as we move into new countries."

Indeed, Lewis’ globalization strategy rests not in exploiting cheaper capital costs overseas, but in creating collaborative partnerships in which both the parent company and the dealer, no matter how far flung, benefit. Today Rhino Linings’ trademark is registered in some 120 nations, and Lewis devotes the money and time to bolster his dealers’ efforts. "It is hard to service a dealer in another country," Lewis admits. "Our global environment is very much like a family business, with incredible loyalty and commitment to each other. We provide support, and they help us build the Rhino Linings brand on the local level."

Lewis plans to continue to invest heavily in his overseas dealers, in terms of capital, time and expertise. He knows all too well that international business is not a one-size-fits-all venture. "We must have employees and dealers that believe in our products," he says. "We must continue to analyze the differences in each global environment and adapt to these differences. Running a business is not just about selling a product; we must be able to support our dealers. This is what makes Rhino Linings successful." –Dennis T. Jaffe

Art by Eric Tucker.