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DataClear Company Analysis: Global Market Position
Short Term and Long Term Issues
Having been one of the pioneer companies in data processing, the DataClear Company was a real need in the world of software about ten years ago. The company experienced its ups and downs knowing exactly what the users wanted at the specific tie of the software product development. One of the short-term issues they faced when advertising their ClearCloud software product was conveying its significance to the users who needed it. So, the information was to reach its target audience. The company started as a very perspective business and by 1999 the sales reached $2.2 million. The long-term goal was to make the sales level up to $60 million in 2002.
The Advantage of DataClear
There is one clear advantage that distinguished the DtaaClear Company from all others within the market: the telecommunications industry and the financial service provider are their double focus. The double covering of the development branches makes it possible to attract and meet the demands of much more customers, hence make more profit. Another significant advantage is the ability of Greg McNally to lead fizzy teams. His team leaders wonderful potential was perfectly seen when there was an advanced data analysis package developed under his supervision.
SWOT Analysis
Providing services to the clients in the spheres mentioned above would make a company build specialized infrastructures which would involve employment increasing. This opportunity of enlarging the company will challenge and at the same time provide new opportunities to sell blockbuster products across the geographic spectrum. The strengths here are the professionals and the prolific minds of the employees taking important positions Tom Birmingham, for example. The main weakness and the threat are the competitive companies within the market. There is no way DataClear can control the quantity and quality of the entrepreneurs entering the market. And so, the visit was a major threat for DataClear after the testing of the beta version of their soft.
Business Strategy and Corporate Strategy
According to the business strategies of the company, they have to go global right now. Unless they direct all of their forces to make the companys products globally merchandized, they will face either loss of potential or complete dissolving. Hence, the corporate strategy should involve the consolidation of the current position of the company in the domestic market. This will largely give strength and resources to embark on global advancement in the future.
Porters Five Forces Model Analysis
Using Porters Five Forces Model for analyzing DataClears position on the global market, it is possible to say that the current ability to enter the global mass production bargaining power of suppliers is not at the highest level of prearranging, although the position within the domestic market is pretty solid. The bargaining power of customers is a very important microenvironment and is strong within this sphere of investigation. And although there is an unpredictable threat of new entrances to the field and hence the threat of substitute products by newcomers into the industry, there still is a high possibility for DataClear to succeed because of their good results domestically and cohesively set work with talented professionals along.
Susans Team A
I would disagree to take Susans approach in globalizing the company due to several reasons. The first reason is that it is pretty hard to win the customers attention across Europe taking Britains office as the headquarters. First of all, there are other companies solidly based within the local market. And secondly, they would need a very good human resource management program to recruit and teach employees all over Europe with different foreign languages. This is additional time and expenses, whereas their primary goal is to survive and appear to be better economically and technologically than the main threatening company at home.
Team Bs Approach
Before taking action, it is important to understand what initial goals are and what the perspectives are. Therefore, forming alliances with other parties in Europe is more beneficial and not that risk. Moreover, Benro Company with its data-mining package should be a really good perspective as a complementary produce distributor. Creating a joint venture with them might not only be cheaper than starting invading Europe on their own, but also it can be mutually beneficial for both of the firms.
Greg McNallys Alternatives
The alternatives are never too good when it comes to choosing the best of the worst. So, after the two teams prepared nice presentations and there seemed to be a clear way out of the situation with competitiveness and globalizing, Greg faced another alternative: have much trouble and, most likely, lose or remain a domestic company and be happier. Sarah Pappas said that it was much easier than she had thought at first but then the emergence problems with the companies began to emerge.
Criteria to Determine Final Decision
It is essential to estimate the number of funds they have to use for the situations when risk ventures fail. There should be a substantial sum of money to put to action when there are unexpended expenses or the distribution doe sot go well. Another point to consider is the threat of new entrants on the European territory and already-established companies level of repute. The third thing to think of is the authenticity of the product they are going to distribute to the European market. If ClearCloud is unique enough not to get competitive newcomers in further two years a least then the risks are low.
Which Alternative Should Greg McNally Endorse?
Sometimes it is better to take risks rather than not do anything and then regret what you did not for your entire life. Besides, if look at the situation more profoundly, the possibility to be crashed by VisiDat is very high, and staying at the domestic market only would be a slow giving up of themselves to the opponent. However, the nature of the product and the opportunity to unite with the complementary company in Europe seems to be a good way out and Greg should take up this opportunity, especially if recruiting abroad is no problem.
My Choice Implementation
Since the company and its success largely depend on the people and managers working, I would rather put experienced workers there to the positions temporarily or permanently to teach others work. Recruiting good engineers from reputed companies is a choice that is never at a loss because those people can contribute greatly if they suit the companys requirements and are offered a good salary for what they do. Besides, allying with a small but reputed company abroad can is both beneficial for them and us since they have good relations with the firms locally. After all, it has to be started somewhere! Why not make it a small company in Britain or Tokyo?
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