CTM Alder AG: Market potential analysis for the possible internationalization of a Swiss software product
The client has been developing new software to optimize and effectively support driving instructor's administration tasks. The rollout in Switzerland took place in 2019. The project team has been tasked to analyze which foreign country would be most suitable for expanding the software.
Aleks Nenic & Andrea Niederberger & Danao Lopez Gfeller & Kindushan Jeyatharan & Shanjey Rajakumar, 2020
Projektarbeit/Praxisprojekt, CTM Alder AG
Betreuende Dozierende: Pieter Jan Perrett
Keywords: Market Entry, Internationalization, Porter's Five Forces, PESTEL, Software, Driving Instruction, Scoring System, Market Analysis
The Swiss software producer has been specializing in providing digital learning solutions in driving instruction. Their focus has been shifted towards creating an innovative solution to ease the everyday business of driving schools and instructors. Hence, the pioneering software was launched. Since the product has been launched in Switzerland, the CEO has been investigating the expansion of business operations into markets abroad. The problem was to assess all critical data points about as many countries as possible. A recommendation was made on which country the client should expand to first.
The idea consisted of gathering as much information about secondary data on all European countries, the USA, and Canada. Firstly, the project team conducted a broad data search using government statistics and industry knowledge of associations. Secondly, a scoring system was created in collaboration with the CEO to assess which data points were the most important for the client. Lastly, the project team conducted a PESTEL on the top three ranked countries and a Porter's Five Forces analysis on the driving instruction industry. The findings were based on the scoring system.
The scoring system results showed that the most suitable country for the first market entry is one of Switzerland's neighboring countries. As well as being fairly similar to Switzerland, it provides the most uncomplicated expansion of entering the international driving instruction market. The competition is not saturated and promises a reasonable basis for the client to start operations. The PESTEL analysis provides a macro overview of the whole country tailored to the respective market. Moreover, Porter's Five Forces show that the market is lucrative to enter, although there is already a competitor present. This will help to establish a better position in the market. The ranking is followed by other specific European countries. Overall, the project work has provided the first step for a possible expansion. The client now possesses a broad analysis of most countries that could be considered for further business ventures. The macro and micro analyses provide an in-depth view of the top three candidates for entry.
Studiengang: Business Administration International Management (Bachelor)
Fachbereich der Arbeit: Strategie, Marketing & Kommunikation