ELIXIR TECHNOLOGY—ENTRY INTO MIDDLE EAST
PART 1 Introduction
This statement is to demonstrate how we decide to enter the Middle East, and what actions we will take to consolidate our market share step by step. PART 2 SWOT Analysis
To get more information about our potential market, we did analysis as followed Strength:
High-performance product: ER's new bi-directional text rendering allows to write from right to left and was scalable both upward and downward. Company's agility and cultural appreciation give a ready capability to adapt to new or changing circumstances. Elixir had the successful entry experience when it explored Japan market. Elixir offers competitive price, up to 50 percent less than its competitors. Weakness
We don't have sufficient information about the middle east, and we are not sure whether our product can be adapted to the new market. We don't have insurance to adapt to a different culture and ever failed to enter China market. 3. Company rules should be renewed according to religious belief which will add our unnecessary cost. Opportunities:
1. UAE is in its period of rapid economical development and promising to be a software-importing region. 2. There are fewer competitors who are doing exactly what Elixir is doing. 3. Elixir had received direct product enquiries from the United Arab Emirates (UAE). 4. Singapore's Economic Development Board is planning a trade mission trip to Middle East. 5. The UAE, long recognized as the leading commercial and trading center of the Arabian Gulf, has the strong purchasing power. What's more, the non-oil sector of the economy like IT economy and services are growing at a rapid pace Threaten
1. We don't have sufficient cultural insight into the middle east market, and different religious belief may cause uncertain conflicts which may cause fluctuations of company value. 2. We don't have an existing partner who can help us both localize our software and do distribution. 3. Local software companies have competitive advantage over us and they master more information about market than us. We have no idea about market size or customer needs so there is no support for us to make any marketing decision. The small scale of population results in low consumption level which will have negative effect on our sales. PART 3 Issue statement
Our analysis revealed the following key issues that need to be resolved. How to enter the Middle East market?
Sub issues that need to be addressed include
1. How to choose partners and build distribution channels?
2. What is the time of entry?
3. How to define target market?
4. How to set our product price?
5. How to carry out the promotion plan ?
6. How to operate human resources management?
7. How to generate enough revenue on a basis of long-term consideration. PART 4 Strategic alternatives
How to enter the Middle East market?
A. We can enter the Middle East via Malaysia
1. Singapore and Malaysia are neighbors and share a common history. 2. Some companies in Malaysia have culture insight from operating in a Muslim country. 3. Cooperation with a medium size company may help achieving broader distribution. 4. Malaysia is perceived as Southeast Asia’s “gateway to the Middle East”. 5. The trade policy in Malaysia is free.
1. It takes some time and effort to find and get to know the potential partners. B. We may partner with a large European technology firm which has a strong presence in UAE. Strength:
1. We can get to know the local market in a short time with a low cost. These are achieved by the help of the European firm who has a strong presence in the Middle East. 2. People living in the Middle East prefer to do business with someone they are familiar with. Partnering with the European firm can shorten the time for us to get familiar with them. 3. It is more likely to ensure good market coverage and less financial exposure. Weakness:
1. The large...