To Go Global Or To Stay Local
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Data Clear’s Dilemma:
“To go global or to stay local?”
Submitted to: Mrs. Helder
Submitted by: Vanesa Cividini,
Class:2IBMS3
SN: 20030864
Date of Submission: 21st February, 2005
Table of Contents
1-Introduction
2-Problem definition
3-SWOT Analysis
4-Analysis
4.1-Stay Domestic
4.2-Go Global
5-Conclusion/ Recommendations
6-Bibliography
7-Appendix
7.1-SWOT Analysis table
1-Introduction
Data Clear (D.C.) is a pioneer in data analysis software. For a while, D.C. had this market for its own. Now the competition is rising and the company needs a rapid change before the newcomers invade the market.
2-Problem definition
Data Clear has reached the point where drastic decisions are crucial. Should they go global or stay local?
3-SWOT Analysis
Despite of being in the market for such a short period, Data Clear has certainly vast strengths. After only two years, the company has acquired leadership in the market and a record of increasing sales. This is indeed a grand plus. Thanks to its technical expertise, D.C. has made possible the development of a unique product: Data analysis software. This product has surely facilitated the company’s success, but that is not all. Thanks to its youth and the great multiplicity of its staff, D.C. has definitely proved its openness and adaptability. This is a crucial issue when talking of an enduring company.
However, there is no utopia when talking about Data Clear. As the company is still young, there is as well, a long way to go. Despite of its great success, D.C. has a significant lack of experience. This can be quite hazardous when making major decisions. Whats more, there is no clear goal of the company. The staff at Data Clear is highly qualified but there is no actual consistency in the general objectives. Apart from that, the company has a major lack of infrastructure. At the present time there is a deep need for Data Clear to expand. This infrastructure necessity makes it very expensive even to expand locally. When talking about expansion, another important matter is marketing. People need to know the product to buy it. In this D.C. has a big weakness.
Because a company is not an isolated entity, the environment has a critical role in its development. It is in the company’s ability to deal with its environment that makes it thrive or fall off.
Data Clear’s environment presents sound opportunities. One of the most important matters is globalization. This internationalization has made possible the interaction among people, business, products and countries. More and more there is a trend for constant unification. Due to Data Cloud’s innovation and its growing market, this tendency can be very positive for Data Clear. Big markets may open to Data Cloud and it could be recognized and acquired worldwide. All this looks very appealing, but there is still one key matter: it is very difficult for a small company to go global alone. Nowadays companies from all around the world form alliances to make international expansion more accessible. Government intervention is also an important issue. The government can help or put barriers to international expansion. This is a two sided coin and the company has to be well informed to take action.
As I already mentioned, Data Clear is not an isolated entity. It is true that until now the company has been alone in the market, but it is just a matter of time until new companies emerge. Competition will be a grand challenge for the company and it is important that these newcomers do not take Data Clear unarmed. The economical environment can be a great danger also. Nowadays the world is suffering a threatening economical squeeze. This can be very negative for a company that wants to flourish, because the levels of consumption can fall tremendously.
4-Analysis
4.1-Stay Domestic
The United States of America. With more than 293,000,000 inhabitants, this country has the largest and most technologically powerful economy in the world (www.odci.gov, accessed 15th February, 2005). This makes it also one of the greatest markets in the planet. Because of it greatness, companies from all around the globe seek a piece of this outsized cake. But of course as any other market, this is a demanding one and only few succeed. Data Clear is on the way. With only 2 years in business, this company has established itself in America’s market and has been able to reach great sales. This is just the beginning.
Soon competition will arise and Data Clear will have to be strong to maintain its position. Let’s not forget that D.C. is still a new company and needs to strengthen and to acquire more experience and knowledge. With this, the company will be in great advantage with the scantily experienced newcomers. Staying in the US, the company will be able to spread itself and conquer a major part of the market before the competition arrives. This will give D.C. more market strength and will also reinforce the company as a whole.
To stay domestic will also be easier and less expensive than going global. D.C. has already achieved recognition, good reputation and success in the U.S., thus, the company will not have to spend gargantuan quantities in marketing costs as if it goes global.
Staying in the US will also open new doors to D.C. Expansion and diversification can be great opportunities. As the company