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Dataclear Case Study Globalization

864 Words4 Pages

Summary: DataClear founded in 1998 by Greg McNally and his two partner and all of them were lacking international experience. DataClear’s main products were algorithm based software for telecommunication industries and financial services. DataClear had unexpected sales of $2.2 million in 1999 and based on their calculation the sales can easily grow to $5.3 million in 2000. Greg and his partners believe that with little development changes to product, other sectors such as chemical, petrochemical, and pharmaceutical can also adopt the software and they are expecting $900 million of annual sales. They are the leading product in domestic market and DataClear has high growth possibilities. Currently their customers are U.S. companies and some of …show more content…

If a company want to grow in some stages of its life it should go globalize. If DataClear go global there might be some opportunities as well as some drawbacks. The opportunities can be listed as: a new market for the product, company will grow, and the company will get the cross cultural learning benefit. And the drawbacks could be: more complexity, rapid change, increased risk of volatility, and uncertainty. Additionally, DataClear can obtain another type of globalization which is finding of alliances in host countries this can be find via partnership or acquisition. The benefits of this approach could be; combined firm resources, access to intellectual property, and economies of scale. The drawbacks could be; difficult to build trust between partners and also there are possibility that the partner from host country, gain the knowledge and one day become a strong …show more content…

based company with international experience and existing sales channels overseas. This way DataClear can have something, which is better than nothing. Should DataClear Go-Global or No? Based on Managing global expansion there are 5 reasons for a company to global, the growth imperative, the efficiency imperative, the knowledge imperative, globalization of customers, and globalization of competitors. From DataClear situation we can understand that the company only want to global because of growth imperative and globalization of competitors. DataClear is a company with rapid success and they don’t want to lose any growth chance, but they forgot to do more research and find more facts about different markets and then decide. As per the case study they mostly use the word “potential” rather than “actual” which mean they are not sure about the information they have. Their information is limited to news channels and news magazines. They seems obsessed with the news from their potential rival VisiDat in UK market which DataClear has no presence there yet. DataClear wants to have market share in countries it does not operate yet. They have no information of the domestic competitors as per the case or there is no domestic competition for them which can be a big plus

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