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International business strategy includes different types of strategic tools and tactics which helps to business firm for expanding their business. Effective international business strategics is become a source of competitive advantage for the company. The present report is based international business strategy of IT’S LEARNING which s a digital management system developed by Norwegian company (Arvidsson, Holmström and Lyytinen, 2014). This report make analysis on different types barriers which is faced by the company during its international expansion. Along with this it's also make analyses of the different types of resources which need to be scale up for expanding international business. At last this report make analysis on strategic issued which are faced by company to become a global leader.
Strategic issues in expanding business
IT’S LEARNING is a digital management system developed by Norwegian company. It is the for the largest learning management company is world (Bilbao-Osorio, Dutta and Lanvin, 2013). The company is web based learning management system designed for both lower and higher degrees of education. Organization is providing has over four million active users worldwide and they are offering their services in many countries such as UK, USA, Norway, Sweden and Denmark. There are more than 7.5 million people are using IT’S LEARNING program.
This learning management system is mainly design for the students and pupils. Through this learning system they are enables to publishing subject schedules, in project management assignments (Borghoff, and Pareschi, 2013). Students can create groups where files may be uploaded, or ideas discussed. It's also possibly to create and publish tests and competitions in the system.
Barriers in international market
IT’S LEARNING is Norway based company. Entity 's offering their product only to universities and college only because it is considered as the safest way to expand business in home country. In the domestic market firm's share is around 56%. In Norway organization made a successful entry but for the foreign expansion there are many problems which are faced by them. Following are barriers which faced by entity during international expansion.
The major problems which is faced by the organization during the international expansion is different types of cultural. Cultural and their values changes from one location to another location. These cultural value create huge impact of organization and their activities. In each country there are different types of values so the product should be according to their values. For a software company it is important to understand the cultural interaction which helps to them for expanding their business (Bundy, Shropshire and Buchholtz, 2013). IT’S LEARNING is a digital earning management system software company which is mail focuses on developing learning management system for students. Main cultural problems which is faced by firm in its international expansion. Interaction of software with its audience should be according to their cultural background such as in UK they company add filters to sort the improper language which named as the E Safety which automatically scanned the text and deleted words which were in appropriate.
A leading problem which is faced by many organizations during their international expansion is lack of proper communication. Effective communication is essential for every organization in order to make and develop interaction with their customers. IT’S LEARNING is Norway based company and for its learning management system they have to develop their software into local language because this software are mainly used by the student and Pupils so they can easily understand their languages (Cassidy,2016) In order to make effective communication the company software companies partner with a software localization agency to adapt the product in each of the target languages required. With the help of this software can easily translate their language appropriately and in addition users become more satisfied by using products.
In the international expansion each country have different types of laws and regulation which may effects to the business and its activities. For making a successful international expansion organization have to look the rules and regulation which are set by country's top authorities (David and David, 2016). IT’S LEARNING also faced the similar problems during its international expansion. Organization is trying to develop there market in Germany where they faced many problems. German education environment is consists many opportunities for business but its bureaucratic environment does not allow to organization to expand its business. In order to expand their business they need to take permission from German government because in that country education is not public. Apart from this to expand its business in European country they need to take permission from EU, it helps to them for expanding their business easily (Gereffi and Fernandez-Stark, 2016).
Marketing and Branding
There are some other factors which need to be considered before international expansion. Each international market is consists with their own marketing trend which is essential to take into account for business expansion. For example if nay organization want to expand their business in Asian country then their marking strategy should be focused on low cost and international quality because people of Asia are very price sensitive. Similar problems is faced by IT’S LEARNING during its international expansion in Italy. People of the France is always like to consume those products which are invented in their own countries (Hill, Jones and Schilling, 2014). For this entity need a not of planning before entry in French market, they need to be represent as the organization which appear to helping to students and faculty.
Low cost and Speed
Each product or service which is launched by the organization need to be consists some features which helps to them for expanding their business. Price is become a challenge in global market. IT’S LEARNING software is low cost software and this is the reason that US customers are buying It’s learning for cost
saving purposes. Main problem which is faced by organization in its international expansion of USA is that there software is not working at full speed. On order to expand it's business in USA they have to work on the software speed. Majorly people of USA buy those products which is provided them the best quality and not focusing on products prices (Liu and Maitlis, 2014).
Above all are the major strategical issued which are faced by entity in their global expansion. In order to expand their business in international market, required a lot of planning and need to understand the local market as well.
In the presents world economy there are many types of mega trends which may effects business of IT's learning. The major mega trends which might effects business of company is Diffusion of power (Luxton, Reid and Mavondo, 2015). The present demographic trends is hold by the North America and Europe and they will lose status and influences as developing countries in Asia become more prominent. China is rapidly increases and their economic polices are more promising in nature. IT's leraning major business is conducting in UK and other part of European countries. In UK organization's share is more 20%, In Norway its 56%, Sweden and Denmark 40%. So the IT's learning need to focuses on more Asian countries (Reading, 2012)
With the help of Globalization organization business does not remain limited to their geographical limit. As increases in globalization people's demand is also arisen and companies need to full fill their demands. In this context, IT's learning need to focuses more on globalization. The organization need to understand the main customers and their preferences so they can take advantages of globalization. There are many countries which is rapidly increased such as China, India where demand of digital leaning is rapidly increases so the IT's learning need to focuses on that.
Digitization has huge impact of the IT's learning and its working. Digitally transformed that increases mobility and lees need to dedicated work space increases productivity (Reading, A., 2011). For this IT's learning is also fouces on developing different types of new technologies such as providing the individual learning platfrom and development of another Multi Media & INTERNET@SCHOOLS which is latest feature in company.
Resources and competences to scale up and develop competitive advantage in the foreign markets
IT’S LEARNING is international software company which is mainly focused on developing learning management system for their customers. The main product of organization is to make develop different types of digital learning programs for their customers. In order to expand their business in foreign market there are various types of resources which helps to them for expanding their business in foreign market (Mudambi and Puck, 2016). Along with this the company is also making tied up with many other organization such as Microsoft so they gain market share easily. For gaining the resources and competences which scale up in the foreign market Value chain analysis theory can be used.
Value Chain Analysis
Value chain analysis is strategic tool which is used by organization for to make analyze internal firm activities. It is goal to recognize which activities is are most valuable to take advantage of the competitive advantages. Through this strategic tool IT’S LEARNING can identify those resources which help to them for gainsaying foreign market. According to the model there are two types of activities i.e. Primary and Secondary activities.
a) Inbound logistics
IT’S LEARNING contracts with multiple suppliers internationally. Therefore, the company need to Mauritanian highly complicated supply chain operations so they can conduct their operational activities effectively (Paroutis, Bennett and Heracleous, 2014). The company is selling its Learning management system to in many schools and universities and they also possess in depth knowledge in supply chain management.
The entities offices are located to the worldwide which helps to them for ensuring proximity in suppliers and reducing transportation costs. Organization is also conducting its business operation in Asia particular in China.
Distribution of the products and services are facilitated via different channels such as equipment developing and throe ugh online sales. IT’S LEARNING need to scale up their distribution network through developing a network of distribution and re sellers. It helps to firm for boosting up their resources (pugh and Duffy, 2013)
c) Marketing and sales
In order to capture foreign market IT’S LEARNING need to use the both online and offline channel in integrated manner. The organization need to associated with brand messages with the value of effectiveness, efficiency and convinces in dealing with a wide range of professional and personal tasks.
For gathering the international market the company need to boost up their services. The organization need to scale up their customers service along with their product development (Röttger, 2013) IT’S LEARNING needs to provide services such as pre purchase and post purchase. So the can provide the best services to their customers.
a) Firm infrastructure
IT’S LEARNING firm infrastructure is based on the integrated IT infrastructure network which allows to them for bring more technical capabilities and central control efficiency to management. So for foreign market expansion need to take right decision at the right time.
b) Human resource management
The HR of organization consist with many national and international professional which helps to them for improving their services. For expanding its business in foreign market they need to hire more international and national based IT professional which helps to expanding their business (Savino, Manzini and Mazza, 2015).
c) Technology development
For technology development the company need to focused more on in house research along with this they need to develop their products on the cost effective basis. In order to expansion business in foreign market they also need to develop their learning management systems as according to regional demand of consumers.
The procurement steps includes make contracts with different types of vendor and also includes supplier diversity programs so they can expand their business easily.
Future resource development
IT’S LEARNING is focuses on ensuring long term growth. For this the company is adopting many strategies. For the future development company is Ansoff's marketing strategy which is as follows (ill, Jones, and Schilling, 2014).
1) Market penetration
This strategy is considered the least risky since it focuses on growing with existing market with the existing product. This strategy is used by organization when they want to expand their current market share. For this IT’S LEARNING is focuses on developing its market share in Norway with their own Learning Management System. In order to gain current market share the company is increases its promotion and distribution network.
2) Market development
In this the company is entered in new market with their existing product. For this company is developing its market share in many other regions such as UK, USA, Germany and France (.Gereffi. and Fernandez-Stark, 2016) If the firm is want to expand its business other countries then they need to make certain changes in their LMS.
3) Product development
The product development includes create new products and services targeted at its existing markets to achieve growth. This involves extending the product range available to the firm's existing markets (Ozturk, Joiner and Cavusgil, 2015.). For this strategy the organization is developing their existing product in which the company introduced Pilot project which helps to students and teachers to develop effective communication.
In diversification an organization tries to grow its market share by introducing new offerings in new markets. In its internalization the company is focuses on using diversification in that area where they need to make more profits (Chadwick, Super and Kwon, 2015)
IT’S Learning foreign market development the company is focuses on Market development. Presently the organization is conducting successfully operation in much country so they need to focuses on developing further market development. In this context IT’S LEARNING make agreement with Microsoft which helps to both company to gain market share.
Strategic challenges involved in adapting a born global digital enterprise
There are many strategic issues which are faced by company for becoming a global digital enterprise (Cassidy, 2016). IT’S LEARNING is offering its product services in many countries which mainly includes Netherlands, Sweden and Denmark. Apart from this the company is making further expansion in UK, Germany and France. At the initial stage entity is offering its services to only University and Schools this is considered the best strategy to expand business in home country. In Norway, its market share approx. 56%. Following are strategic issues which are faced by company in adopting as the global digital enterprise.
With introduction has opened many opportunities for the business houses. With the help of this company can expand their business in many other countries. It also assists to firm for developing their market share and gain for profits but along with this there are certain challenges as well. In order to expand business in other country companies need to understand cultural of that country in which they want to expand their market. Understanding the foreign country is essential to presented their existing products or services, to designing new products and services for new customers (Bundy, Shropshire and Buchholtz, 2013). Similar problem is faced by IT’S LEARNING in order to expand its international business. Presently entity is conducting its operation in many countries and each country has different types of cultural such as in USA people like to buy product on the basis of speed. They do not focus more on costs effective product (Itslearning App, 2017). For this the organization need to gather more data and information and conduct better analysis.
The main strategic issues which is faced by IT’S LEARNING to become born global digital enterprise is lack of security. The organization want to expand its business at international level for that entities need to focus more on security (orghoff, and Pareschi 2013). At present they are only focuses on expanding its business on the basis of their LMS. With the help of this security and new ideas they can expand their market easily. For this they need to conduct market research so they gain more market share (Gürhan-Canli, Hayran and Sarial-Abi, 2016). For example in UK, the organization build E safety feature which automatically scanned the text and deleted words which were deemed inappropriate. Along with this in USA a feature create more problem in which instructor
could monitor a student’s activities and use of IT’S LEARNING when they had logged on and off. In technology world entity need to provide security in the digital products so the correlation between level of activities and learning (Bilbao-Osorio, Dutta and Lanvin, 2013).
A changing regulatory environment is always of concern in certain industries. In the international business the company has to maintained certain rules and regulation which are set by the country's government. Top authorities and their regulation may create huge impact on the entity. In the Germany IT’S LEARNING face many the similar problem because German educational sector is very fragmented, and also bureaucratic. The company need to adopt the certain laws and regulation so they can expand their business easily.
Another strategic issues which is faced by IT’S LEARNING is that they need to conduct proper market share. Due to lack of proper market planning organization had to face many problems. In the France the company does not adopt the correct market strategic because individuals who belongs to France buy products which are invented in France (Arvidsson, Holmström and Lyytinen, 2014). For this the company need to make proper planning so they can make more promotion of their products. Along with this its future planning in which they make agreement with the Microsoft. This agreement make benefits for the both organization. However, the entity required a lot of money to expand its business in international level (Itslearning, 2017).
Market Based and resources based strategy
Resource based strategy
Market Based strategy
It is that strategy in which the organization concentrates in reconsigning and utilization the organization resources. It is an important and essential for management of the company to develop useful strategy and in this organization evaluated the environment on the basis of available resources.
Market based view (MBV) of strategy designs the company policies and strategy based on the trends and the nature of the industry's environment. It helps in selecting the market combination for the product, in which the company utilities its strategy (Ozturk, Joiner and Cavusgil, 2015). In this IT's learning is focuses more on the developing their market. At present they are focuses more Germany, UK and USA.
Responsiveness and Synergy
It is a quality of a business process or supporting IT solution, which indicates its ability to respond to changing conditions and customer interactions as they occur. It is concepts which focuses on continuous improvement. For this IT's learning is focuses on developing different types customers services (O'Cass, Ngo and Siahtiri, 2015)
It is means that working together. The team work helps to develop of creation of better work. For this IT's learning is focuses on developing their team in diveristy.
In order to become a born global digital enterprise the entity need to focused on certain strategy which helps to them to expand their business internationally. There are many problems which are faced by entity in their internalization and to avoid such problems they have to follow below recommendations.
- Before entering in international market, the company need develop proper planning and should conduct market research so they get the proper data analysis. With the help of the market planning the company can reduces certain risks and also gather information regrading to their consumers taste and preferences.
- Apart from this they need to add more IT professional in its business. In order to expand business at international level they have introduced to diversity in their management. So they can enlarge their business activities. In this diversity also helps to them to make understand the environment of particular regions like France.
- IT’S LEARNING is also facing issued is cultural barriers in its expansion. The organization need to understand the cultural in which they are operating business. For example in Germany's cultural is bureaucratic. For that the company should analysis of cultural background of particular regions.
- At last, the organization need to focus on developing more security features in its learning management systems so their users can enjoy their products. The organization need to conducted pre and post purchase research so they get idea what kinds of problems are faced by their users and make necessary modification it is business plan
Summing up the above report it is concluded that for making international expansion business firm need to make strategy which helps to them for reducing risk factors. With the help of different types of module theory the company is able to those factors which might effects organization and its activities. From the above report is also concluded that IT’S LEARNING which is Norway based digital learning management system development. The organization is making its international expansion in which they are facing many problems and for that company is adopting different types of strategic which reduces assist to them for global expansion. However, IT’S LEARNING need to focuses more on their innovation strategy so they can make their products different and innovative.
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