Clear has faced a range of problems related to the market conditions and serious competitors that were already in the market. The company had to create effective strategy and Implement it as fast as possible. However, the lack of experience of some executives made a challenge to organize the work, so there were various ups and downs in managing the business and positioning it internationally. Nevertheless, the company seemed to go through all the hard times rather successfully and eventually took it market place, especially progressive in the local market.Issues Short term First of all, when the Issue of launching the business abroad the country, due to the Serge’s lack of International experience It was not strategically clear how It Is better to do it.
The potential income was attractive for the company; still, the step- by- step implementation plan was not established at the beginning. In order to reach the wanted results, it was necessary to increase brand awareness, which would positively reflect on the demand. Considering the current market situation and the well- established competitors there, the company needed large installed base in international market as soon as possible.In order to organize the business abroad In short period of time Declarer had to implement aggressive strategy, however, that was quite risky. Long term The common problem of the software market where Celluloid operated was that the companies gathered the information much quicker than were able to work with it. That caused a range of related problems because the demand should have been testified while the capacity was not enough. New bigger competitors were another additional challenge because the new product had to attract the customers and persuade them to purchase It.
Gulfs, the company’s product launched abroad, was not popular at all. The product was used only by Americans. That was a sign that new strategy should have been designed. The company had to build specialized sales and service infrastructures as well in order to succeed in the market, so it was essentially to expand. New competitor in the market, British upstart, brings along with it new angle of Issues. So Declarer should decide whether to continue focusing on its domestic prospects even though they are rather strong, or to expand Internationally to head off the nascent threat all over the world.
Analysis Competitive Advantage and Sustainability In the local market Declarer does have a distinctive competitive advantage, however, in the international market it is not very appealing to the customers. I would say the competitive advantage, which the company has, is not sustainable because the more powerful and their products are more demanded. Declared has positioned itself as a company that considers the issue moments of others and trying to fix them. That is why it makes the work more operative and resulting.
Still, that is not enough.The customers are looking for more benefits, which the company can give, and if the competitor is able to offer the better value for the same price, the consumer decision is quite predictable. Nevertheless, Declarer had a huge success in the local market with its product Celluloid that had two versions for different industries. So, in inside market the company has a rather big chance to succeed. General and Task (Industry) environment The demand on the products supplied by Declarer is growing, so that is a sphere with a high potential.
Customers become more technologically oriented, so the new products in this sphere would be attractive to them Nowadays, that is a potential sphere that has some big competitors, which actually may take the biggest market shares due to their sizes and reputation, yet, new companies have a good chance to set in the market and take their shares with some new creative convenient products. SOOT and -rows a. Strengths: high demand in the local market; good reputation; good quality of the products; fast operating of the information; etc. B.Weaknesses: no success abroad; low brand awareness; lack of the international experience of the executives; etc. C.
Opportunities: international market; co- operation with other bigger companies; launching of the new products; increasing tendency of the customer demand etc. D. Threats: big competitors; loosing money in the process of implementation international strategy; lack of promotion; etc. Considering the inducted research and analysis, it can be clearly seen that the international strategy is not effective, that is why, needs to be fixed.
Moreover, the company has a success in the local market, so it may be reasonable to put the efforts to promote inside the country. Business level Strategy and Corporate Strategy The current strategy of the company is to enter foreign markets and to succeed there. The corporate main strategy is to provide high quality product to its customers.
Team As Approach I consider that the Team-A approach is a rather potential one and should be tried. London and Tokyo markets still do not have big competitors in the sphere, so Declarer could enter the markets and take significant market shares there.Moreover, in this way, the company presents itself as a pioneer what brings additional benefits with it. However, that might be rather costly for the company that is why, before establishing new offices, it should be properly planned. Team Bi’s Approach In my opinion, considering the current market position of the company, it is a very good idea to create some Joint ventures, and Benson seems to be a perspective ratter for Declarer. First of all, it has a good reputation among customers.Secondly, both companies are technologically strong so would beneficially complement each other.
Accordingly, to Bi’s approach, autonomous software distributors should be used in each country. That is a kind of outsourcing and might work very well for Declarer. Alternatives strongly persuaded the company has enough capacity to be a serious competitor in the sphere in international market, he would prefer to stay in the local market and concentrate his attention there for as long as possible. Right to the end, Greg was not sure whether it is worth to go internationally or not.
He believed that it would give a lot of new opportunities for the company and almost double the total profit, but admitted that it would be very risky and they eventually lose a lot of money. Nevertheless, the potential profit is worth the risk and trying. Criteria The main criteria would be the time during which the establishing the business internationally would be paid back. Moreover, the total spending that the company should make to succeed. The alternative of placing business abroad and expand it veer the local market would be the best one.However, it causes some challenges, which should be dealt with. Implementation The best what the company should do is to stay in the local market and promote it mainly for the people living inside it.
When the company is confidentially established in the local market, it is possible to go internationally. Still, I would suggest Declarer to stay in local market and become a kind of national product instead of chasing foreign markets. Eventually, it could increase the brand awareness and get more customers.