Go Global or No?

Group 4
Members:
1.Leena Dhakad (IGTCM27PG045)
2.Roshni Kaushik (IGTCM27PG067)
3.Sharanya Aravindakshan (IGTCM27PG077)
4.Sheetal Momaya (IGTCM27PG079)
Contents
1. Journey of DataClear
2. Major Players
3. Go global or not?
4. SWOT analysis
5. CAGE Framework
6. Conclusion
Journey of DataClear
● Greg McNally started DataClear a data analysis organization in 1998
● He created the data analysis software called ClearCloud
● The organization was really taking off due to data analysis being an
underutilized market at the time
● It had a $2.2 million sales in its first full year of operation in 1999.
● DataClear had thirty-eight staff members.
● Goal: $20 million in 2001 and $60 million in 2002
Major Players
Data Clear:
❖ Greg McNally - Founder and owner of DataClear
❖ David Lester - Part owner of DataClear
❖ Tom Birmingham - Business development-manager
❖ Susan Moskowski - Sales team member

Pierre Lambert - a candidate for head of European sales

Sarah Pappas - Greg’s old friend from school, founder of Desix which designs
specialty chips for the mobile communications industry.
Should Data Clear, Go Global or not?
Constraints to make a decision:

● Competitor - VisiDat, launching a data analysis package Globally can

hamper sales
● Estimated Growth of Telecommunications and financial services sector in
US - $600 million
● Annual demand for chemical, pharmaceutical and petrochemical industries in
US - $900 million
● Potential market - $1.5 bn domestic, $1.26 bn abroad

So, The CEO needs to decide:

To not go global and expand in potential domestic industries; or
Focus on data analysis software market and expand to UK and Japan.
 Huge capital will be required on plunging
abroad...
A) Office in U.K. (Europe) with
4-6 salespeople costing over
$500,000/year and at least 4
salespeople in Tokyo (Asia).
B) Setting up a joint venture
with local firm offering
complementary product with
autonomous software
distributor in each country in
Europe.
Risk is the price for every opportunity..

● Potential International Market worth $1.26 bn

● DataClear can gain strategic positioning abroad by replicating its current
strategy
● Carefully managing International Market will allow the company to tap new
markets, with less competition and gain advantage
 ...so stay home why roam?

A) Operate in current
market - financial and
tele-communications
industry
B) Operate in new market
- chemical,
petrochemical and
pharmaceutical
industries
International expansion initiative; not
feasible
● Lacks management and personnel expertise in international business
● Possibility of culture clash with UK and Japan Market
● Huge capital requirement
● Re-engineering of product for analyzing data in different languages
● Problems in staffing local experts
● There is more flexibility and control in the US unlike in UK and Japan.
● There is less financing involved hence low risk.
● Customizing to suit local needs and establishing distribution channels is
difficult

Hence, to make a proper decision, a SWOT analysis can be performed

SWOT Analysis
FACTORS
● STRENGTHS Leading Software company
Experienced and high skilled staff
● WEAKNESS New Company

Lacks experience to go cross-borders

Do not have international sale strategy
SWOT Analysis
FACTORS
● OPPORTUNITIES Joint venture with Benro - on expanding abroad
Selling internationally online (US - headquarter)

● THREATS High cost across borders

Difficulty in transferring equipments and installation
across borders
FOCUS! Strengthen position at home...

From SWOT Analysis we can conclude that DataClear has gained a good
reputation in US, being the leading company there. This has helped them attain a
stable business.

Hence, It is important for them to focus on strengthening their home base and
thereby expanding in the other potential market available.

To determine which country to expand in the future, a CAGE analysis is done

CAGE Framework
Comparison of CAGE Factors in US with Europe and Asia

FACTORS UK JAPAN
Cultural Distance Language, Social Norms Low High
Administrative and Government Policies Low High
Political Distance
Geographical Transportation and Low Low
Distance communication link
Economical Consumer income, Cost and Low Low
Distance quality of infrastructure
Globalise: More potential in UK..
Based on CAGE Analysis, if the company plans to expand internationally, it
should focus on doing so in UK.

Economically and Geographically, both UK and Japan are close to US. However,
on the basis of cultural and administrative distance UK is closer to US.
Conclusion
● Currently, not to go global is the wise decision for company as it lacks
capabilities for international business.
● It can use domestic market expansion strategy, product development strategy,
capabilities development strategy to neutralise threats currently encountered.
● However, company needs to make a plan for global entry in future.
● In meantime, it must strengthen its base in domestic market and make global
entry when it develops stronger capabilities.