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Go Global or No?

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Submitted By ravilal
Words 2430
Pages 10
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 senior management - a serious shortcoming. Before thinking about going global, we must get smarter about the interna-tional scene and get some real expertise on board. Global expansion will require additional funds and acquiring these funds from the capital market presently would be expensive. It is important to recognize that a global strategy has many complicating factors such as product

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