Russian Federation by BTS Software Pty Ltd
Strategic export marketing plan – Situation Analysis
BTS Software Pty Ltd is an Australian software company developing innovative state-of-the-art products.
The latest product released by the company is BTS Software-PMA a Process Mapping software tool targeted at the banking industry.
The product is relatively easy to implement and can be customized by non-technical staff. Additionally, it runs over the existing software modules and infrastructure.
As the local market is saturated by large international outsourcing companies, BTS Software is looking at exporting its latest product to new emerging economy countries.
The company has a permanent productive capacity to sell on continuing basis in foreign markets. The prime motivation of choosing Russia is the fact that the founding director has local knowledge and connections on the government level. The contemporary Russia can be described as a country in economic development Stage 2 (The preconditions for takeoff) and joined the group called Less-developed countries. One of the importing opportunities lies in the area of financial services.
Consumer demand of financial services is increasing, therefore the demand for more efficient ways of providing the service is increasing as well. The innovative idea would serve to reduce the costs and give better ideas how to manage and run the businesses.
The mode of entry has been decided to be contractual licensing agreement to utilize local expertise and keep the marketing costs down.
It is estimated to achieve revenues of around $AU2 million annually by investing $AU250K annually to provide the support and guidance to the local licensee.
BTS Software selling to Russia – the best match between internal capabilities and potential demand (at the moment could be in the stage of unperceived need).
BTS Software Pty Ltd is an Australian based software development company specializing in providing IT services and packaged software products. The company has developed a suite of accounting and estimating software modules specifically for the residential building companies. The software modules have been successfully implemented in some of the largest residential building companies.
Over the years BTS Software has also provided IT services to a number of large corporations in Australia including BP, Shell, Telstra, AIG, ANZ, NAB and others. In recent years the company has concentrated in developing innovative web-based software applications directed at the Banking and Insurance industry(1).
BTS Software Pty Ltd is a privately held SME with 3 directors having shares in the company. An external advisory board of executives with a broad range of expertise is also in place. The advisory board’s function is to assist and provide guidance to the executive directors of the company in their domestic and export efforts.
Market presence and strengths in key target market segments
BTS Software has had a successful launch of its latest web-based packaged software into some of largest domestic corporations.
The strength of BTS Software’s offerings compared to its competitors is based on the fact that the product implementations and maintenance costs are kept to a minimum due to the high level of automation, achieved by incorporating a patented technology.
BTS Software has a 15% market share in the major banks, 10% in the Insurance industry and 20% in the residential construction industry.
Major competitors are Oracle, SAP and High-End CRM system software providers. The software offered by the competitor companies cost hundreds of millions of dollars.
BTS Software’s Major products are:
• Accounting Software and Estimating Software Suite
• Web-Based software Systems - business intelligence, cataloguing and Process Mapping software modules (2)....