Comp Tech is a US-based company that operates in the IT industry. The company was founded ten years ago, and currently, it is headquartered in San Jose, California (Comp Tech: About the company, 2016). It is important to note that representatives and distributors of the company are located in more than three states of the country. Comp Tech’s mission is to provide the efficient IT solutions for clients and develop the high-quality systems and software in order to address the clients’ needs (Comp Tech: About the company, 2016).
From this point, the company proposes such types of products as the software developed for customers to meet their interests and address their particular needs, database systems, networking systems and solutions, and data management and security systems among other services (Comp Tech: About the company, 2016). The company also provides clients with the necessary hardware, and it guarantees the installation and monitoring of the quality. Thus, Comp Tech works to ensure that clients use the advanced IT systems, and their data exchange and communication are protected. The purpose of this paper is to discuss the possible foreign markets for this company with the focus on comparing the market research tools.
The Market Research Data Base
The preliminary research on the possibilities for Comp Tech to expand to new markets indicates that Singapore is a good choice for this company because the IT market actively develops in the selected country. However, the further research also demonstrates that the Chinese market is one of the largest IT markets in the world, and the provision of more opportunities for Comp Tech to enter this market is important in order to contribute to the company’s development as an industry leader.
It is important to note that in 2010, the total size of the import and export related to the computer industry in China was about $55 billion, and these numbers increased for the period of 2010-2015 (IT and Telecommunications: International trade, 2014, para. 2). Therefore, in order to preserve the competitive positions in the United States and attract more clients globally, Comp Tech should focus on expanding to China.
One of the approaches for the company to develop in the new market is to focus on the diversification strategy (Morrison, 2013; Wen, Wang, & You, 2015). It is possible to create new products and services that can become popular in the Chinese market. Still, it is necessary to pay attention to the fact that these products can be presented only in China because the goal is to develop goods or services that are suitable for the particular market (Murphree & Breznitz, 2013). From this perspective, the additional research is necessary in order to choose the service that would be provided by Comp Tech in order to address the interests and needs of the Chinese consumers.
Market Research Information
The current market research indicates that Hong Kong is one more country that should be recommended for Comp Tech in order to guarantee its successful global expansion. The reason is that in spite of the fact that the IT equipment and software import decreased in 2014 and 2015, the export increased. As a result, this market remains to be one of the largest IT markets in the world (more than $2 billion) (Computer and information technology equipment, 2015, para. 3).
Furthermore, the US IT equipment and software export in Hong Kong is still high (more than $1.5 billion) (Computer and information technology equipment, 2015, para. 3). Currently, the main focus is on developing the cloud computing technologies that allow companies to work distantly (Tarafdar, Gupta, & Turel, 2013). The number of clients who need developing corporate cloud services increased significantly in 2014 and 2015 (Computer and information technology equipment, 2015).
From this point, in order to expand to Hong Kong, Comp Tech needs to pay more attention to developing such branch as the development of cloud and network services for corporate clients in order to enter the market of Hong Kong (Tarafdar et al., 2013). It is also important to concentrate on providing the consulting services for users of cloud systems. Comp Tech is expected to reorganize one corporate unit in order to focus on proposing cloud services and products and become competitive in the IT market of Hong Kong.
It’s Your Call – Where Are You Going to Look When You Need Information?
Comparison of Two Websites
While comparing the results received after searching such website as GlobalTrade.net and collecting the data provided by the U.S. Commercial Services, it is possible to state that the official website provides more significant and accurate information. These data are available on the Export.gov website. In order to check the accuracy of the information provided on the websites and evaluate their credibility, it is necessary to pay attention to the sources from which the data are collected for the site, as well as on the frequency of updating the information.
GlobalTrade.net is a website that was founded in order to provide businesses with the details on the global trade relations and inform corporate users regarding the recent tendencies in the field. However, the problem is in the fact that the information that is posted on this website is often out-of-date, and moreover, the international market analysis reports are posted by specialists in the sphere, but not by the representatives of the government (IT and Telecommunications: International trade, 2014).
Therefore, it is rather difficult to test the accuracy of the provided data, and the results can be referred to as findings of the market research conducted by analysts, importers, and exporters (Morrison, 2012). In addition, in spite of the easy navigation, the website provides the information on the trade tendencies in the form of reports that are not categorized. Therefore, Export.gov can be regarded as the more advantageous tool for conducting the market research for the company.
The information that is located on Export.gov is provided from the governmental sources. It is possible to find reports and trade agreements, as well as notes regarding the export and import between the United States and foreign countries while using the website (Computer and information technology equipment, 2015).
From this perspective, Export.gov provides the better marketing research results because the available information is divided into categories, and it is possible to find the information regarding the aspects of doing business in the certain country, details of the market research, as well as the information on services and programs. In addition, the available information is updated, and it is possible to search the findings of the market research that are related to the period of 2015-2016. These details allow for the easy use of the website, and a researcher and a corporate leader receive a good opportunity to check the statistical data regarding the changes in the global market.
Reputability of the Market Research
It is possible to state that the market research that is found on the Export.gov website is more reputable than the research found on the GlobalTrade.net website. The reason is that the information provided on the Export.gov website comes from the governmental sources, and conclusions stated in articles are based on the statistical analysis and industry reports supported by the government. From this perspective, it is possible to refer to the data located on this website as credible in order to conclude regarding the choice of the country to which the business can plan to expand. Furthermore, in order to refer to the reputable information that is supported by the market, industry, and governmental research, it is necessary to search appropriate countries on both websites.
The reason is that the filters available on the GlobalTrade.net website allows for determining which countries are most popular and discussed in the association with the concrete industry. For the IT industry, 832 market analyses are available (IT and Telecommunications: International trade, 2014). It is possible to narrow the search while specifying the subsector of the industry. In this case, it is relevant to choose such subsector as Programming and Software, as well as Computers. The search indicates that the majority of reports on this industry are related to China and Hong Kong (Breznitz & Murphree, 2013).
These data are important to conclude regarding the countries that should be searched with the help of the Export.gov website. From this point, it is reasonable to find the accurate information regarding the global trade tendencies referring to the data on the Export.gov website. Still, the GlobalTrade.net website is important in order to narrow the search regarding the countries of interest. In addition, it is possible to compare the information that is related to selected countries and located on these two websites.
Conclusion
In order to choose the country where it is necessary to expand, it is relevant to use market research tools. Today, it is possible to use different websites that provide the categorized information regarding market trends in the world that is easy to navigate and examine. Therefore, the success of the market research depends on the choice of the credible source of the information. While comparing two websites that can be used for the market research, such as the GlobalTrade.net website and the Export.gov website, it is possible to note that the website based on the governmental data can provide more accurate details regarding changes in the global trade.
Therefore, while assuming that Comp Tech plans to expand to the Asian market, it is necessary to choose the Asian countries from the available market list for the further examination. Nevertheless, in spite of the fact that the information located on the Export.gov website seems to be credible and relevant to the country and industry, more research is often required in order to state what approach should be selected by the company for the expansion. As a result, both websites need to be used in order to examine the situation in the market in detail. Moreover, the data collected with the help of this market research is often not enough in order to make conclusions regarding the business expansion.
References
Breznitz, D., & Murphree, M. (2013). The rise of China in technology standards: New norms in old institutions. The US-China Economic and Security Review Commission, 16(1), 15-22.
Comp Tech: About the company. (2016). Web.
Computer and information technology equipment. (2015). Web.
IT and Telecommunications: International trade. (2014). Web.
Morrison, W. M. (2012). China’s economic conditions. Current Politics and Economics of Northern and Western Asia, 21(3), 289-310.
Morrison, W. M. (2013). China’s economic rise: History, trends, challenges, and implications for the United States. Current Politics and Economics of Northern and Western Asia, 22(4), 461-478.
Murphree, M., & Breznitz, D. (2013). Innovation in China: Fragmentation, structured uncertainty, and technology standards. Cardozo Law Review, 2013(1), 196-268.
Tarafdar, M., Gupta, A., & Turel, O. (2013). The dark side of information technology use. Information Systems Journal, 23(3), 269-275.
Wen, J., Wang, J., & You, H. B. (2015). Relationship between e-commerce and foreign trade: Evidence from China. Journal of International Trade, 6(1), 4-12.