Australia softwarecompanyl1g3


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    1. 1. L/O/G/O Australia Software Company The members of Third Team 081123066 宋花瑞 081123077 张凡 081123095 杨冰楠 081123099 曹曼曼 081123271 聂高峰
    2. 2. Agenda Click to add title in here Click to add title in here Objectives Future 4 1 2 3 Background Analysis Recommendation Summary 3 5 6
    3. 3. Objectives Assess market attractiveness of France, India and South Korea Recommendation - Select the suitable market Future action - Choose the best entry methods [
    4. 4. Background Company ContentsContents ContentsContents -Government -Major corporations •  Product  Market in Australia Software development -A security system for PCs, Laptops, PDAs and new generation mobile phones, which provides for access control, data encryption and secure login to corporate networks. –Target users: The company which used corporate networks.
    5. 5. Background Company ContentsContents ContentsContents - International expansion -Support foreign language versions -Interested in three markets: France, India and Korea. •  Oversea market  Future strategy Software development -Selling to USA and the UK through distributors
    6. 6. Analysis Micro Market size And Market growth rate Macro Politic/ legal Micro Completion Macro Social/culture ThemeGallery is a Design Digital Content & Contents mall developed by Guild Design Inc. Economic Cost of serving market Analysis Micro Macro
    7. 7. Here is the legal risks India: the IPR protection law is very specific and strong [5]. France: In common with all developed societies, France has a distinctive system of protection of intellectual and industrial property rights. [6]However, French has protection own industry laws [7]. South Korea: Korea ranks fourth in the world for number of patent applications .So there is a developed IPR law[8].
    8. 8. Here is political risks  India : high inflation has largely eroded its political capital. At 8.62% in September, headline inflation is still above the Reserve Bank’s comfort zone of 5-6 percent, [1] .India's highest risk score of 6.87 on a scale of 10 [2]. The monetary system is stable recently.  France has a strike movement for the pension change, recently [3]. French control the inflation. It is unstable, Europe dollars go down.  South Korea : the tension relationship with North, Besides war, another risk scenario for markets would be the implosion of the North Korean regime, leading to sudden reunification [4]. Inflation of South Korea is a diagram,[7] The exchange rate is stable recently.
    9. 9. The comparative corruption among three counties The India government rank the worst .
    10. 10. The comparative GDP growth
    11. 11. The cultural and social: language 1.France 2.South Korea 3.India 1. French 2. Korean 3. English Definitely only Indian can save the cost of creating a new language. Besides if do some marketing research and technology supporting is difficult for different languages. The English Software
    12. 12. Compare the economics Labor cost There are labor cost, GDP growth rate, Software industry development , exchange exposure . The labor cost is the important dimension. Whether the country has potential market Government attractive schemes International expansion should consider this. GDP growth Software industry Exchange exposure
    13. 13. Software industry schemes India rank theIndia rank the firstfirst South Korea’s software mainly developed for domestic markets . No beneficial project . India South Korea France India is famous software superpower, India production of computer software products have been exported to world 75 countries, the United States is the largest market for Indian software products, followed by Japan, European and southeast Asia countries, but also Indian software product main buyers. 。 Software exports now has become one of the Indian national economic pillar industries, software export to India's information industry brings bumper profits. The software industry developed not as well as expected by government. On the contrary ,some protective action have been taken. In 1986, the Indian government promulgated computer software policies, to software development created favorable conditions, such as providing capital (including foreign exchange), organize personnel training, simplifying investment and import formalities, debate domestic goods tax, etc. In the 1990s, India's economy toward full liberalization, and globalization, performance: basic cancel industrial permit to the private sector can enter more industries
    14. 14. Labor cost India France South Korea Australia China 0% 20% 40% 60% 80% 100% 5% 45.7% 8.7% 23.6% 27,8% 6.3% The cost of workforce ranks the total cost 1.00 EUR=1.36910 USD , 1.00 EUR=1,543.25 KRW 。
    15. 15. Market size One of the most determinations is population Title in here Title in here Title in here Title in here A B C D
    16. 16. The foreign exchange situation AustraliaFrance South KoreaIndia France South Korea India Export Import Booming Recession Exchange system Nowadays, seeing the global business, more and more prefer Asian to Europe. Australia
    17. 17. • The following parts belong to what is the potential of the market . Market size The market penetration Target users Population
    18. 18. The population The following diagram illustrate:
    19. 19. Penetration market growth rate 2008 2007 2006 2005 2004 2003 2002 2001 2000 • 59.4% • 56.6% • 44.7% • the peak (SK) only 30% in India • 76.3% (SK) • 74.8% • 72.8% • 70.2% • 65.5% SK and France have achieved the peak pent age, but Indian has a huge penetration population.
    20. 20. The number of target market Indian South Korea French American 30% 76.30 % 98.27% 99.1% The number of target users: new generation mobile phone users , PC, PDA,
    21. 21. The market trends IndiaSouth Korea France USA 2020 2020 2020 2020 • The software will go outside for new market •Design for domestic needs • strengthen exporting Software. • no date available •Outsource some software •Exporting some software for developing countries The market trends in the future
    22. 22. South Korea More competition The competitive similar companies perform easy to use , Quick to install, transport it, no maintenance to try the features.  to kill a target market of soft product coverage, India The most competition France Much competition 8 9 7 9 Competition situation USA The situation is similar with India
    23. 23. Cost of serving market Software is special product, transfer in through internet 60% 20% 15% 5% Innovation Cost of workforce Marketing Distance and other factors A B C D
    24. 24. Risks Economic and political risk ratings Risk and Uncertainty Firms usually experience higher risk and uncertainty when they operate abroad. Competitive Risk A firm’s innovative advantage may be short-lived. Monetary Risk A firm’s expansion occurs through foreign-direct investment, foreign-exchange rates and access to investment capital and earnings. Political Risk Look for economic and social conditions that could lead to political instability.
    25. 25. Risk assessment table Measure Weighting Rating (1-10) Attractiveness France India Korea France India Korea Risk & uncertainty Lowest 10 - highest 1 50% 9 8 5 4.5 4.0 2.5 Competitive risk Lowest 10 - highest 1 20% 3 9 5 0.6 1.8 1.0 Monetary risk Lowest 10 - highest 1 10% 7 5 4 0.7 0.5 0.4 Political risk Lowest 10 - highest 1 10% 8 9 5 0.8 0.9 0.5 Total 100% 6.6 7.2 4.4
    26. 26. Opportunities CHOOSING AND WEIGHTING VARIABLES Variables must be weighed against each other to effectively evaluate the potential success of a particular venture and to compare various ventures. Opportunities Market Size Market size is determined by sales potential. Ease and Compatibility of Operations Market located nearby, share the same language and offer similar market conditions. Costs and Resource Availability The cost of labor, the cost of inputs, tax rates, and available capital, utilities, real estate and transportation. Red Tape Difficulty of getting permission to operate the business.
    27. 27. Opportunity assessment table Measure Weighting Rating (1-10) Attractiveness France India Korea France India Korea Market size Best 10 – worst 1 50% 8 9 6 4.0 4.5 3.0 Ease and compatibility of operation Best 10 – worst 1 30% 7 9 2 2.1 2.7 0.6 Costs and resource availability Best 10 – worst 1 10% 2 10 5 0.2 1.0 0.5 Red tape Lowest 10 - highest 1 10% 8 2 5 0.8 0.2 0.5 Total 100% 7.1 8.4 4.6
    28. 28. The Risk-opportunity matrix
    29. 29. Future: entry method of India  We don’t choose exporting, because - May compete with low-cost location manufacturers - Possible high transportation costs - Tariff barriers - Possible lack of control over marketing reps we don’t choose set up a wholly owned subsidiaries - we can not afford huge risks and benefits - In the pioneering period, we can not avoid political risks
    30. 30. Where is the market  We choose exporting software to sell in American market,  First of all , software is special product, we transfer it by internet.  Besides, American market is a mature market, which we have own our market share.  Furthermore, avoid cost of establishing manufacturing operations. then we can make use of achieved experience of American market.  We don’t choose Joint venture:  Because, risk giving control of technology to partner, may not realize experience curve or location economies . What is more , shared ownership can lead to conflict we don’t choose set up a wholly subsidiary , because, we won’t face to bear full cost and risk . In anther way , we can not supply full the cost to set up a wholly subsidiary.
    31. 31. Future Entry methods Joint venture Exporting Joint venture Exporting India partners Local environment USA Tariff Share risks Enhance capacity Enlarge economic scope Avoid political risks Advert own brand Learn local markets Mature markets Enlarge sales Hold more shares Strengthen compete Less barriers Get local subsidy Low tax Benefit from high tech
    32. 32. Recommendation: 40 80 Security software product and sell in India, exporting to USA which has been oversea markets of Australia Software Company. SubmarketSubmarket Major marketMajor market The low cost of workforce Save money on researching new market Can focus on major software innovation.
    33. 33. L/O/G/O Thank You!