Topdog Case Analysis

Summary:

TopDog software is a new US-based company producing customer relationship management software. After two years of success in the industry, TopDog’s head of sales has learned of a brand-new company primarily based in London called Fast Data planning to produce a new CRM package that is superior to TopDog’s. As this company expressed their interest in participating in the global market, TopDog’s Co-founders had to discuss the decision of global expansion in order to deal with such competition. Many advisors warned that rapid expansion could consume the company financially and limit its potential. Also, they would need to hire new managers with sufficient international experience. However, founders decided that in order for the company to stay in the market, there has to be some kind of global expansion.

         This Global expansion can be achieved by one of three ways. The first way is by building a couple of workplaces in Asia and the UK and staff them with locals. Another approach would be to establish alliances with small European and Asian companies. Both of these approaches hold the risk of either high cost or the intervention of other companies in the company’s policy. The approach that appeals to the founders the most would be licensing TopDog’s package to foreign distributors. By giving foreign corporations the rights to supply, market, and distribute its CRM package, TopDog would be able to build whole identity and client awareness while keeping low expenses. Despite the appeal of this idea being an in between move and attempting to bring the best of both worlds, being an effective solution remains a concern.

Discussion Questions:

1. What are the arguments for and against Top Dog’s going international?

The arguments for Top Dog going international is that they may lose critical market share in the US Fast Data expands and also losing out the international market. In addition, Fast Data has not yet established itself globally so this would be an incentive for Top Dog to enter the international market to have the edge of competing against Fast Data. Generally speaking, CRM software has a global appeal since it has a continuous growing market.

However, the arguments against going international is that Top Dog reached its resources limit so costly and rapid expansion wouldn’t be the right move forward. Also, it is not easy to go globally without previous international experience that none of the members of the management have so this would require hiring someone with international exposure and this will need time and governmental issues as well.