‘DataClear’ is an IT company, which has faced a dilemma associated with global expansion. The organization is involved in data analysis market. It seized a good opportunity to sell specific algorithms to companies to manage their information flow. The enterprise has positive cash flow, but it confronted a serious competitor that has gone global and concluded a successful deal. Although ‘DataClear’ has no experience in foreign operations, at the same time, it is going to attract additional capital to continue its grow and development. The material form legal memo writing services is dedicated to the company’s dilemma associated with going global.
Strategic Threat
‘DataClear’ is competing with another IT company, which has already expanded its activities to the foreign market. Moreover, it successfully sells its product for $500,000 and wins the competition. At the same time, the employees from ‘DataClear’ cannot make a decision about going global. Moreover, their behavior shows strong objection to any changes. For example, they explain that the company produces a complex product, which is difficult to understand at the foreign market.
On the one hand, it is typical of IT enterprises to have a high level of risk. Usually, novelties need much time to pass adaptation stage and become understandable for customers. However, competition in this area is fierce, which demands quick solutions and constant development. Regarding ‘DataClear’, the competitor proves that expansion of the foreign market is possible. Moreover, the company is aware of its high potential and a chance of doubling sales. On the other hand, workers realize that their product needs additional adjustments to enter another market.
The company’s employees do not want to take additional responsibilities. They anticipate pitfalls in each considered option while going global. For example, they can pool their forces with other company that has already settled at the foreign market. Additionally, the director refused to expand in the past by reason of own fears. As a result, the competitor initiated expansion and the leader wants to repeat the same mistake again.
Expansion to International Market
‘DataClear’ cannot ignore the competitor’s strategic moves anymore. It also cannot exclude existing possibilities at the international market. Such policy makes additional potential entries to the market easier. A big market abroad creates many options for new-comers and existing companies, and, thus, the demand will find suitable propositions.
However, the company should begin with its corporate culture. It should develop leadership behavior to attract a foreign customer. Leadership starts from the top, and, therefore, Gregor must overcome his fears. All employees usually do not want changes. Later, they need even more time to adapt to them. Thus, the company should introduce the expansion gradually and promote it anyway.
A big advantage is that workers know their major product ‘ClearCloud’ in details, which shows their professionalism. They understand its complexity and know potential markets for it. In fact, Japan has a suitable area, which accepts IT products of high quality. The employees recognize that Japanese customer is able to notice special characteristics of ‘ClearCloud’. Moreover, developers have already tested it at the local market, which proves its potential and useful activities.
Also, ‘DataClear’ has blocked its development, because it applies the same strategy for a long time. Moreover, it does not hire new workers who would have additional skills for international operations. New strategies, including expansion, will break the comfort zone of current subordinates. However, they need to learn how to overcome difficulties associated with changes. Only this way, they can develop themselves and become professionals.
Strategies for Going Global
Regarding the fact that employees of ‘DataClear’ have no experience in working abroad, the company should hire new workers with intercultural competence. However, they will also need some time to adapt to new corporate culture. For this reason, the effective strategy for ‘DataClear’ includes cooperation with a company that already has an office in the potential market. Such organization will know local legislation as well as local customers’ preferences.
The second step should be an additional training for current employees. It should promote not only new knowledge about international market, but transformational leadership as well. For example, many team tasks will help people smoothly undergo different organizational changes together. Such approach will diminish resistance to change and strengthen employees’ confidence in their own professionalism. The third step should include the development of new marketing concept for the better understanding of the product. The complexity of ‘ClearCloud’ must be presented together with its quality. However, potential target audience should acquire good knowledge about the product to be ready to invest in it. Thus, new marketing strategy cannot exist without risk management. Risk managers must consider the high level of failure in IT industry, especially at the unknown market. It is advisable to evaluate such risks before attracting investors. Nevertheless, the company should invite sponsors in any case to reduce the constant stagnation and promote development.
‘DataClear’ should expand to the foreign market. Otherwise, new competitors will take advantage of it and start implementing expansion as soon as possible. The company is aware of a high demand for its product abroad. Thus, it cannot waste time anymore. The leader must overcome his fears and promote the culture of strong leadership. The employees want to avoid changes connected with expansion by all possible means. Thus, they must participate in a special training designed for intercultural competency and motivation