...$900 million petrochemicals and pharmaceutical market is practically untouched • This US market is their core strength since they have no existing competitors. However, imitation of their product is possible and therefore, they have to maximize the domestic market share and implement tactical and strategic actions. • This market doesn’t entail any the problems that going into the international market implies. For instance, complicating factors such as product customization, familiarization with potential clients and markets, coordinating activities, procuring the necessary skills and talent to implement the strategy effectively, and fresh learning of language, culture, government policies and business risks. Risks: Dataclear has not enough experience with transformation and go global suggests a large change. Moreover, they have no even developed any concrete strategic structure for expansion into new domestic markets, so they are not ready for the challenges involved in building an international business. In consequences, moving abroad implies a very high risk. Therefore, if they want to go global and they have to do it, they have to implement a step-by-step strategy by first cementing a...
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...Case Commentary Should DataClear go Global? With around $500,000 and two driven associates, Greg launched DataClear in about six months and secured immediate customers. DataClear is at its core a software company with an untapped niche demand for data mining financial and telecommunication industries. It is entirely plausible for another group of very smart individuals with a bit of start-up capital and a vision to give DataClear a run for their money. Thus, Greg must captain his company to strategically grow and secure their dominance, build brand recognition, become a formidable incumbent and accumulate capital in order to fight off potential challengers. Going global is a game-changing decision that can offer DataClear a direct path to achieving substantial growth and establishing security ahead of the evolving nature of technology. As a small business of less than 40 employees, DataClear’s manpower resource is likely to be stretched. His executive team certainly appears to have the will and drive to take on this global initiative, but that might not be true for his rank and file workers. Greg’s global penetration strategy should be staged, with each phase building upon the next. Only in the final phase should DataClear focus on international sales. Phase 1: Implement a support oriented operations abroad. Software and engineering in general are highly valued skills overseas, especially in Asian countries. Talented and highly educated individuals are widely...
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...First I would like to analyze the domestic and international market opportunities our industry of-fer, its advantages and disadvantages along with our strengths and weaknesses in this area. Susan has estimated a potential market opportunity, UK and Japan combined, as $1.26 billion, and for the US as $1.5 billion. Out of $1.5 billion US market, the financial and telecommunica-tion industry provide market opportunity of $600 million, and petrochemicals and pharmaceuti-cals provide $900 million. Clearly, both the domestic and the international markets are under-served and under-exploited presently, which means that we have a great first-movers opportunity in both these markets. While the globalization offers great advantages for expansion, we must ensure that this natural enthusiasm is influenced with clear and focused assessment of our organizational capabilities. For instance, to support expansion into both Europe and Asia, we would need to hire staff for sales, service, legal, and management, as well as technical staff to work on back-end upgrades (i.e., adapting the software to accept different data types) and front-end modifications (e.g., mak-ing language changes and interface changes to fit new cultural expectations). All of the new hires will need to be trained, and with only 38 people on board at the moment, there is little capacity to incorporate the additional personnel at a fast rate. We noticeably lack international business experience on the part of our...
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...HBR C A S E STUDY For two years, DataClear has had the data analysis market to itself. But now a British upstart is nipping at its heels. Should DataClear continue to focus on its strong domestic prospects or expand overseas to head off the nascent international threat? by Walter Kuemmerle l A/HY AREN'T THEY BITING?" wondered Greg McNally as he laid V V down another perfectly executed cast. He wasfly-fishingin the most beautiful spot he had ever seen, on the Alta in Norwayreputedly the home of Scandinavia's worthiest salmon. And he had plenty of opportunity to admire the view. No fish were getting in the way. What a difference from the luck he'd had a couple of weeks earlier trout fishing at Nelson's Spring Creek in Montana. It seemed like so much more time had passed since the two-day off-site he had called there, designed to be part celebration ofthe past, part planning for the future. Some celebration had definitely been in order. The company, DataClear, was really taking off, fueled by the success of its first software product, ClearCloud. In 1999, itsfirstfull year of operation, DataClear's sales reached $2.2 million. Now, the following September, it was looking like 2000 sales could easily reach $5.3 million. At the all-staff meeting on the Friday before the off-site, Greg had announced the company's success in recruiting two more great 37 JUNE 2001 HBR CASE STUDY • Go Global-or No? executives, bringing the staff to 38.Tm more confident than ever that...
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...HBR C A S E STUDY For two years, DataClear has had the data analysis market to itself. But now a British upstart is nipping at its heels. Should DataClear continue to focus on its strong domestic prospects or expand overseas to head off the nascent international threat? by Walter Kuemmerle l A/HY AREN'T THEY BITING?" wondered Greg McNally as he laid V V down another perfectly executed cast. He wasfly-fishingin the most beautiful spot he had ever seen, on the Alta in Norwayreputedly the home of Scandinavia's worthiest salmon. And he had plenty of opportunity to admire the view. No fish were getting in the way. What a difference from the luck he'd had a couple of weeks earlier trout fishing at Nelson's Spring Creek in Montana. It seemed like so much more time had passed since the two-day off-site he had called there, designed to be part celebration ofthe past, part planning for the future. Some celebration had definitely been in order. The company, DataClear, was really taking off, fueled by the success of its first software product, ClearCloud. In 1999, itsfirstfull year of operation, DataClear's sales reached $2.2 million. Now, the following September, it was looking like 2000 sales could easily reach $5.3 million. At the all-staff meeting on the Friday before the off-site, Greg had announced the company's success in recruiting two more great 37 JUNE 2001 HBR CASE STUDY • Go Global-or No? executives, bringing the staff to 38.Tm more confident than ever that...
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...November 20, 2014 Case Study: Go global – or no? (DataClear) By Freddy Valbuena In the hands of Greg, relies the decision for DataClear Company to go global or not in the short time. DataClear is successful in the business in the US with $600 million annual domestic market for its current product, with possibilities of expanding its current market of telecommunication and finance service industries to chemical, petrochemical, and pharmaceutical industries that can add $900million more to their operations. They should focus on these opportunities but now they have a threat, VisiDat is emerging and they have a contract with Shell one of the main companies in its industry but there’s no prove that VisiDat software is better than DataClear’s that have been very successful in the US. DataClear should not panic; they have some options that need to be considered before making a decision that could send them to failure. First they know that to enter the chemical, petrochemical and pharmaceutical industries they need to do some investments to adapt the current software, they also know that to go abroad they do not need to do a lot of changes since they have customers who have operations in other continents and are using them, but overall, expanding the business globally can have another implicated costs and more important they are taking higher risks since they do not have the expertise to work in other countries. In my opinion DataClear should first, take advantage of the opportunities...
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...Question 3 How should dataclear reasses its strategic approach to international expansion ? 2 options : * Don't go international right now. First establish itself BIG in the US. They have protection with the cultural distance and their knowledge of the market. Too big of a risk to expand : high costs, high risk w/ cultural distance. This means : ok there is the first-mover advantage but they should concentrate on building up their teams and also potential alliances. Meaning, have a clearer and more focused assessment of their organizational capabilities. Their actual decision making process has flaws, develop more precise strategic options and move when times come. DO NOT RUSH IT. Plan an international expansion in 4-5 years. . Moreover, they lack of international business experience, before even thinking of going global, DataClear management team should get smarter about international market (issues, challengers, opportunities) and get some real expertise. Maybe gather more funds, because at the moment the company is short on funds considering the numerous costs that would create an international expansion. To do so, with limited manpower, they should remain in telecom and financial service market until it takes over a third of this market wolrdwide. (domestic market offers indeed many benefits for DataClear : doesn’t demand new cultural awareness, and awareness of gvt policies and business risks =sizeable costs) * Instead of investing lots of money into...
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