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Data Clear Case Study

In: Business and Management

Submitted By fv14
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November 20, 2014

Case Study: Go global – or no? (DataClear)

By Freddy Valbuena

In the hands of Greg, relies the decision for DataClear Company to go global or not in the short time. DataClear is successful in the business in the US with $600 million annual domestic market for its current product, with possibilities of expanding its current market of telecommunication and finance service industries to chemical, petrochemical, and pharmaceutical industries that can add $900million more to their operations.

They should focus on these opportunities but now they have a threat, VisiDat is emerging and they have a contract with Shell one of the main companies in its industry but there’s no prove that VisiDat software is better than DataClear’s that have been very successful in the US.

DataClear should not panic; they have some options that need to be considered before making a decision that could send them to failure. First they know that to enter the chemical, petrochemical and pharmaceutical industries they need to do some investments to adapt the current software, they also know that to go abroad they do not need to do a lot of changes since they have customers who have operations in other continents and are using them, but overall, expanding the business globally can have another implicated costs and more important they are taking higher risks since they do not have the expertise to work in other countries.

In my opinion DataClear should first, take advantage of the opportunities they have in their current market where they are leaders, establish a strong performance in the industries they haven’t entered but with the goal of going overseas in the mid-term, doing things the right way, taking time to study their competitor and the possible options they can use to expand their business globally.

After establishing a strong company in their current market DataClear should realize a deep dive about their current threat, is Visidat the only threat? Do they actually need to be scared about Visidat? Once they have the right answers, then DataClear should start a strategy to go overseas, in my opinion they shouldn’t go by their own because of their lack of expertise in the foreign markets, Greg should manage this situation looking for partnerships with more expertise in foreign countries to try to do things right, because if he make the decisions worrying that Visidat could take the lead in the global markets so fast, they can lose everything they’ve done just for making fast decisions without the correct analysis and support from more experimented people, as I said before, they should not panic, fast decisions sometimes can lead you to success but in this case they need to take time to do the right strategy that for me is expand the business and fortify it in the US while studying their threats and evaluate the help of investors with foreign expertise.…...

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