GO GLOBAL OR NOT?
Data Clear undoubtedly has a market overseas. However, the question is how will the company’s global expansion be initiated or will the company postpone on expanding globally for now? This is the dilemma that Greg McNally-CEO of DataClear is facing right now. The company is in the stage of export management where the CEO seeks to invest overseas and exporting is seen as an opportunity for new business.
Greg designated two teams to report to him their recommendations on how the internationalization will go about. Group A recommended the Sales Branches Stage of Internationalization. Group A’s suggestion was a bold move, it entails big costs and the company should hire managers that are highly experienced, who is knowledgeable on this product and knows the market so well. Group B recommended the Export Department Stage of Internationalization. Group B has a more conservative recommendation that the company should look for a good local partner for distribution. Though there is a market internationally, since DataClear belongs to the SME type of businesses, the main issue here is, does the company have the resources to expand? How much will the company finance for the expansion? And is the current market mature enough to look for another target market globally? from there you can enumerate the options. Based on this case, I think the company is threatened and is panicking by news on VisiDat- a direct competitor’s launch; they want to react on this so suddenly that they haven’t yet thought of the risks and factors underlying the said expansion. I think expanding globally is a good step as soon as the company has already established a good foundation on its current market and has already established a global brand recognition like what other software companies did, but nonetheless as we see, VisiDat saw a potential that they can still penetrate the market that DataClear is leading now. DataClear should...