Notes on Compsis Case Study.

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Compsis are a business of which is already well established within the Brazilian market; despite this, in order to improve, grow and branch out it is clear that the company must expand further than that of their current domestic market. Recent revenue figures show declines within some areas of the business, for example the SICAT division’s revenue has decreased by nearly 75% going from 44.2 million in 2002 to 10.4 million in 2004. These figures help to point out that the business could potentially be at risk if continues to operate in the same way with the same business model. Despite their current situation happening as a result of delayed government action, regardless of whether it improves or not the company will always be in a somewhat risky and unstable situation with limited knowledge, contacts and customers. The two obvious markets that emphasize the most potential are probably the U.S and large emerging economies such as India and China, The U.S obviously offers the one key aspect that Compsis needs; an extremely vast potential target market with millions of people using toll services every day. Americas already developed and available market would complement the services Compsis has to offer, especially with their newly developed software and possible lower prices. Compsis’ potential to provide high quality and a range of services indicate how successful they could become once established in a range of different economies; especially the U.S. where toll road projects in most states has continued to increase. Their two levels of auditing and overall financial supervision combined with the various interlinked services they are able to offer (SICAT, ATMS, SMV, SGM) means once established they can differentiate and offer a higher quality service for lower prices. Because of this and their lack of current disposable income it would seem most appropriate to invest in some sort of partnership; the most practical would be with a business such as Transcore. By...
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