International expansion for business

Topics: Government, Customer service, Marketing Pages: 7 (2605 words) Published: April 27, 2014
1. Is international expansion a necessity for a company’s long-term survival in the ISP business? Why or why not?

“The business of providing Internet services for consumers, known as ISP is a business that does not need face-to-face interaction in order to survive. Not only does it not need human interaction, it does not necessarily need to be on the same continent in order to deliver these services to consumers. ISPs are very low cost to establish and can be very simple to run. However, when a simple business such as an ISP competes with others in the same market, they often need key advantages over others in order to survive. The decision to expand internationally is one in which will now be discussed. “

“Like any new business prospect, the decision to expand globally will need to take into account many factors. There are numerous factors that will play in deciding whether or not to expand, however among the most important are, expertise and knowledge, of not only the product, but also the targeted area. With these, a company can make the educated decision to enter a market whilst at the same time analyse if the set up costs and capital investment are proportionate to the potential profit from the new region. Knowing these costs and what they will do to the short-term performance of a company are crucial when analysing the potential to enter the global market.”

“Another crucial factor in going global is a company’s management strategy. This strategy will determine everything from choosing the right people for the right jobs, i.e. the selection of appropriate expatriates, right through to developing cultural awareness programs to ensure their product will be received appropriately in the new market. Management must also analyse the potential new market and determine the climate. Is the market flooded? Can the infrastructure hold up with the new service? Can the socio-economic climate accommodate an ISP? These questions are what management must be well grounded on and have answers or strategies to overcome in order for an ISP to survive effectively on a global scale.”

“If an ISP chooses the wrong market to enter, the company can take a financial blow that could see operations in the parent nation affected or stopped. However, with the right management strategies, an ISP can look to taking over companies that may have faltered in this area. An effective strategy to entering the global market is takeovers. An ISP can enter a market via takeovers to quickly acquire customers and capital. These are not what have made the previous company fail. Management and customer service is usually where a company falls short and ultimately fails abroad. “

“Looking at the above considerations, it is necessary in the long-term for an ISP to enter the global market. However, the long term in the cyber context can be much longer than a regular consumer service. Once a company has the grounding and knowledge of their parent nation, they can then look to new countries to tap into and deliver the same service. Globalisation has created an environment, especially in a cyber context, where people need and desire the same things; this is no different for Internet services. Developed countries are now focusing on Internet speeds and capabilities more than ever. If an ISP can deliver a high quality service with effective management and customer services, there is no denying that they won’t succeed abroad. “

2. Consider the case of an Australian ISP wishing to expand internationally. Develop Criteria for market selection and determine a list of five countries that fit those criteria. Then determine the order in which these countries should be entered.

“When developing a set of criteria for market selection, a lot must be considered and tailored to suit individual companies by providing a set of specific criteria that pertain to the individual needs of that company. For an Australian ISP to select five countries to target, they...
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