Go Global

Group-13
Shubham Nigade – 84
Apurv Patwardhan - 20
 Success Up Till Now & The
Dilemma
● Company has Achieved $600 million dollar market in US in
telecommunication and banking sector.
● 20 Installation outside US.
● Dilemma- The competitors are going global, should they also go global?
 ANSOF’s Matrix
Market
Existing NEW

Market Penetration • It has available demand.

• Have achieved success. • The market can add up to $900
Existing • Not much scope for increasing million .
profits . • Chances of market abroad is also up
• Foreign competitors are likely to to $600 million.
enter this market . • In domestic expansion cost is
Product

• No cost to be further incurred. negligible .

Product Development.
• Up gradation in the existing product
will be the only scope .
NEW • Not much significant in increasing
the market size .
• Expansion abroad will cost $500000
a year.
• Expansion cost will mount to $2
million.
• Has market of about $660 million.
• Highly profitable and good for brand
name.
 ANSOF’s Matrix Suggests

● Staying in the domestic and in the same market will block the growth of the
company.
● Need for globalization is must due to increase competition.
● Diversification will help the company stay in the market.
 Market Driver For Globalization

● Customers in telecommunication and financial

services where about $600 Million in foreign land.
● Petrochemicals and others put together have
potential of about $660 Million.
● Both put together has potential of about $1.26
billion.
● Demand for the product is already their.
 Cost Concerns For Globalization

● Entry without joint venture in foreign market will cost about $2 million for new
product development.
● Salaries and infrastructure will cost $500,000 every year.
● Financials at the current stage doesn't support this expenses.
● IT can only satisfy the Domestic market expansion .
 Competitors In Global Market.

● The companies like Gulsoft trying to launch their product in the global market
.
● To create brand awareness globally.
● IF not gone global the market will be restricted to domestic.
● Other competitors can easily enter in the domestic market.
 Potar’s Diamond
Factor Conditions.
• Labor resources and capabilities are
available.
• Software engineers available in foreign
land

Related and supporting industries.

• Many regional small scale
Demand And Condition. software and hardware support
• Very high demand all over the units available in foreign land.
globe • Can be used for joint ventures

Strategy & Rivalry.

• High competition in the global market.
• Foreign competitor may enter our
domestic market
 CAGE
Cultural Distance
Administrative & Political Distance
Geographical Distance.
Economic Distance.
• Requirements are more or less the
same.
• The aspect of regional language should
be added in the software.
• Will have to take local help to
understand and overcome this.
• Countries & market size is large.
• Need to find a place that could serve
major clients in major countries.
• Cost of entering is high .
• Infrastructure need to be developed
 Conclusion

Chances of competitors entering the domestic market is high. Therefore there is

need to go global. And hence going global is the best option to prevent them
from vanishing from the existing market.