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ITEC is an information technology company and it has the successful business in Spain. Now it wants to enter to the UK market to develop its business what is selling franchises for advertising. This report is mainly about the analysis of its key opportuni

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Introduction

Individual Problem Solving Report of ITEC Table of content 1. Executive Summary 3 2. Identification and Analysis of Key Opportunities for ITEC 4 2.1 SWOT analysis: 4 2.2 Porter's diamond model: 4 3. Recommendations and Implementation 7 4. Appendices 9 5. References 11 1. Executive Summary ITEC is an information technology company and it has the successful business in Spain. Now it wants to enter to the UK market to develop its business what is selling franchises for advertising. This report is mainly about the analysis of its key opportunities and gives some recommendations and implementations. In the first part, this report identifies and analyzes the key opportunities based on the SWOT analysis and Porter's diamond model. In the second part, it gives the recommendations what the differentiation strategy should be applied and gives the implementations about this strategy based on the part one and the theory of strategy. 2. Identification and Analysis of Key Opportunities for ITEC ITEC is a Spanish Information Technology Company. And in the last two years it has developed a new online business what sells franchises of 'Your City Portal' in Spain. This websites offer complete information about everything that goes on in various cities and the company provides the franchisees with everything to develop their business. ITEC has an excellent business performance in the local market. ...read more.

Middle

The number of the people who would search the information through the internet website is very large and sustained growth. (5) Government and chance: Besides, the aspects of government would bring opportunities for its entering. For example, UK's government issued many policies to encourage FDI (Greenaway & Richard, 2007), and the affects of WTO and European Union would bring many chances for it (George & Manasis, 2010) (see appendix 1). With the analysis based on these two analysis model, this report concludes its key opportunities: (1) The mainly marketing methods are internet and franchises. Internet is a very popular marketing method and it would save the costs of its business. Franchises would bring some advantages, such as reducing the risks, providing more resources and enhancing the corporation. However, relying only internet makes its marketing and strategy single and franchises would reduce its profit margin. (2) Its experience for business. ITEC has approximately 10 years business about it in Spain. And this experience would make its business in the UK market simpler. However, its international experience is not enough and this would be the barrier for its entering. (3) Its excellent situation of the related and support companies, such as Google. The excellent situation of its related and support companies would bring many benefits for it. ...read more.

Conclusion

Besides, reinforcing the management and corporation in any link in its management chain is significant. Absolutely, expansion of product portfolio and applying its commercial equipment available to carry out the business are the vital aspects from the perspective of the organizational structure and management systems in its international strategy. 4. Appendices Appendix 1 Strengths: 1. They are in a strong, growing industry (the Internet) 2. Extensive experience in this sector since 1999. 3. Product-gives 4. Developed own procedures 5. A known brand 6. One of the largest networks portals on the Internet Weaknesses: 1. No international experience 2. The costs of franchises (see appendix 3) 3. The experience for the UK market is not enough 4. English language barrier Opportunities: 1.Growing use of the Internet 2. Emerging economies SO opportunities: 1. using of the internet and franchises 2. growing economies WO opportunities: 1. costs 2. experiences Threats: 1. Government cuts have affected the local economies in cities. 2. The competition in the UK market ST opportunities: 1. government 2. international experience 3. competition 4. related and support industries WT opportunities: 1. international experience 2. international environment 3. the current situation of the UK market Appendix 2 Fiugre1 Porter's diamond model Source: adapted from George, G. & Manasis, G., 2010 Appendix 3 Initial investment Initial start up fee 12.000 � + 2,900 � (once the site is live) Initial royalty 0 � advertising 0 � Duration of contract 5 years Appendix 3 the costs of its business Source: http://www.portaldetuciudad.com/www/paginas/ficha-tecnica.asp (Accessed: 3 April, 2011) 5. ...read more.

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