Go Global - or No?

Submitted to:
Kathmandu University School of Management
GEM 671 Global Business Management Date: 2012 July 3

Go Global - or No?
Executive Summary: DataClear was established in spring of 1998 after realizing the gap of information collection and analysis in different organizations. This emerging company has been offering two versions of its product targeted to telecommunications sector and financial service sectors. ClearCloud, product of DataClear, was able to fill gap arose due to recent technical development and able to address crucial issues like detecting fraud patterns in Credit card companies. In short span of time, company managed to have good presence, having sold $ 2.2 million in first year of full operation and about to achieve around 150% growth in current year. In recent days, however, company is facing challenges mainly from British

start up VisiDat which is about to launch new product. Greg is scratching his head about how to move further. On one hand, big global player in market may challenge if it decides to remain as it is. On the other hand, going global can cause loose in light of lack of internationally experienced work force and capital. Analysis/Issues: Looking at the growth pattern of the company, we can clearly notice the impression company has been giving by their innovative product. Currently, company is operation in roughly $600 million market of US telecommunications and financial services. When Greg came to know about the potential move of competitor VisiDat, he realized the challenges and scratching head for different alternatives. DataClear has pool of talented and experienced people from various sectors. CEO Greg McNally has 15 years of work experience in Borland and Oracle as a software developer and product manager. Susan Mskowski is competent sales staffer, having work experience in financial sectors. Company has recently recruited a 20 year experienced R&D manager at DuPont as a Business Development Manager in his company. These staff, however, are

lacking international work experience which company might need in future if it decides to go

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Go Global - or No?
global. Susan MsKowski is only Staff with notable international experience that too in Asia which comprises huge diversity. Besides the financial and telecommunication sector company has huge potential to enter into the unreached sectors like chemical, petrochemical and pharmaceutical industry. Current version of ClearCloud could be adapted to these industries without much hassle, as goal of the software is to help in analyzing data. Market research has also shown that ClearCloud has latent demand even outside US. A British startup Visidat has become headache of the company in recent days. Visidat is about to launch new product for targeting similar market targeted by DataClear. In the organization, some employee, including Susan Mskowski, are favoring for going global. Tom, however, was opposing ideas citing different obstacles that might be faced in other countries. In group discussion, one group proposed to set up office in Britain while another group suggest to establish venture in concerned country for sales of their product. Greg has not been able to make proper decision in the dilemma amid various alternatives. Greg might make mistakes to go global without assessing the SWOT of the company as he seems to have ego problem to beat VisiDat than to become successful company. As analysis has already cleared about problem exist in the organization. The major dilemma faced by manager is whether to go global or operate in local market currently they are serving. Even in local markets, they have option to operate as it is or to enter into other industries. In foreign markets, on the other hand, company has option to go full-fledged or to use joint venture. Though the product has potential to compete in global market, lack of international experience, lack of enough capital may hinder to go global. Remaining on the same market, on the other hand may also trouble the organization.

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Go Global - or No?

Recommendation: Globalization has become inevitable for almost all companies. But that doesnt mean, every organization should plunge into global market without assessing strength, weakness, opportunity and threat of internal and external environment. After analyzing the case, I would like to suggest to Greg not to hurry to go global. The company not only lacks qualified human resources to go global, but also lacks proper information about international market and the cost associated. Besides, Company needs huge amount of capital to go global. In my opinion, company should first capture the other unreached sectors of local market like chemical, petrochemical and pharmaceutical industries. Newly appointed experienced Business Development Manager may help a lot to enter into chemical industries as he has 20 years of working experience. Additional business developer with good experience should be hired to effectively enter into respective industries. In long run, however, it should plan to go global as ultimately software developer organization like DataClear have to target global customer. After capturing local market, company should start hiring people with international expertise in different sectors. At first stage of international operation, company should enter into English speaking country where product can be sold without modification. Company should also work out for the cost benefit of different option to go into international market. In order to solve, problem of financing need, DataClear should offer IPO and go global in next 3 years.

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