Go Global--or No? HBR case study responses - To Go Global&#8212;Or No?<br>How You Made the Call

by Sean Silverthorne, Editor, HBS Working Knowledge.

When we asked our readers to act as consultants for a mythical analytical software maker, DataClear, they stepped up to the plate. And then hit it out of the ballpark.

The responses we received are all well-buttressed with logic, contain high-quality thinking and, happiest of all, make for great reading.

To recap the case: U.S.-based DataClear enjoys a dominant position in the data analysis market. The bad news: competition is suddenly on the horizon, in the form of British start-up VisiDat—at least according to a trade journal story. So now what? Does DataClear stay focused on the U.S. market, leaving VisiDat a worldwide opportunity on its own? Or do DataClear execs Greg McNally, the founder; Susan Moskowski, head of sales; and Tom Birmingham, business-development manager, forge a global strategy? Here are more details on the case.

Most of our readers urged DataClear to stick to its knitting in the U.S., rather than be diverted by trying to start an overseas operation with a management team that was short on foreign market expertise. Marc Luoma smelled a company that was rushing too fast toward a decision. "What DataClear needs to do is to not panic, slow down, and take a clearer look at its situation and the business environment and develop some strategic options that will allow it to go global when the time comes."

Consolidate your first-mover advantage, counseled Shankar Avsb. Think about an international move in four or five year's time. "The domestic market offers many benefits for DataClear. It doesn't demand fresh learning of language, culture, government policies, and business risks. All these factors turn into sizeable costs the moment one moves to the international markets. In essence, a 'domestic-market-first' strategy is about maximizing the mileage from every dollar spent on sales and marketing."

Jerry Luther, a research analyst, urged DataClear to take a middle-of-the-road approach, keeping focused on the U.S. opportunity, while also planning for the future. "Greg needs to listen to his basic fishing instincts and focus on becoming the leading freshwater fisherman in the United States but also have someone exploring downstream and outfitting for international waters," wrote Luther.

But not everyone urged such caution. Gopi K. Vaddi, a software engineer, was ready to roll the dice a bit, suggesting DataClear cash in on its powerful—but fleeting—first-mover advantage. "DataClear should hire business development managers in both Europe and Asia right away. These people should not only concentrate on building up their teams but also on potential alliances. Considering the limited manpower, these people should concentrate only on bigger accounts until they realize sizable revenue. DataClear should remain in telecom and financial service markets until it takes over at least one third of this market worldwide."

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