Greg McNally, the CEO of the DataClear had owned the data analysis market for two years to itself. But British VisiDat had starting to compete by producing beta testing of data analysis package. DataClear had the potential to expand their business in other industries such as the chemical, petrochemical and pharmaceutical or expand overseas to prevent their business from going down and beaten by the competitor. Issues
As the British VisiDat starting to sell similar product, the data analysis package market will not owned to the DataClear anymore. Worst, if the VisiDat are entering the global market, the DataClear performance will badly pressured if they did not take any action quickly. The CEO of DataClear are in dilemma if the company should go global or not. They had to choose either not going global and expand their business in other industries such as, chemical, petrochemical and pharmaceutical or focus on data analysis software market and expand to Europe and Asia.
Problem solving tools
STRENGTH * Leading software company * Experienced and high skilled staff * Good performance| WEAKNESS * New company * Lacks experienced to go cross-borders * Do not have international sales strategy * Lacks of international management experience| OPPORTUNITIES * Joint venture with Benro| Threat * Competitors * High cost across border * Difficulty to transfer equipments and installations * Language and culture difference * Staffing local experts|
The CAGE framework
Attributes creating distance |
Cultural distance| Administrative distance| Geographic distance| Economic distance| 1. Different language 2. Different social norms 3. Different ethnicities| 1. Absence of colonial ties 2. Absence of shared monetary or political association 3. Government policies 4. Institutional weakness| 1. Physical remoteness 2. Weak transportation or communication links...