TOPDOG SOFTWARE

At the age of 39, After working for nearly fifteen years at a leading software
company on the West Coast, Ari Weiner and his soon-to-be-wife, Mary Carpenter,
had cashed in their stock options, withdrew all their savings, maxed out their
credit cards, and started their own business, naming it TopDog Software after
their beloved Alaskan malamute. The two had developed a new software
package for root cause analysis (RCA) applications that they were certain was far
superior to anything on the market at that time.
TopDogs software was particularly effective for use in design enginnering
organization because it provided a highly efficient way to eliminate problems in
new digital manufacturing processes, including product development, software
enginering, hardware design, manufacturing and instalation. The software, which
could be used as a stand-alone product or easily integrated with other software
packages, dramatically expedited problem identification and corrective actions in
the work of design enginering firms. The use of TopDogs RCA software would find
an average of 30 to 50 root cause problem and provide 20 to 30 corrective
actions that lowered rates by 50 percent, saving tens 10 and sometimes
hundreds of thousand of dollar with each application.
The timing proved to be right on target. RCA was just getting hot, and
TopDog was poised to take advantage of the trend as a niche player in a growing
market. Weiner and Carpenter brought in two former colleagues as partners and
were soon able to catch the attention of a venture capitalist firm to gain
additional funding. Within a couple of years, TopDog had twenty-eight employees
and sales had reached nearly $4 million.
Now, though, the partners are facing the companys first major problem.
TopDogs head of sales, Samantha Jenkins, has learned of a new company based
in London that is beta testing a new RCA package that promises to outpace
TopDogsand the London-based company, FastData, has been talking up its
global aspirations in the press. If we stay focused on the United States and they
start out as a global player, theyll kill us within months! Sam moaned. Weve
got to come up with an international strategy to deal with this kind of
competition.
In a series of group meetings, off-site retreats, and one on-one
conversations, Weiner and Carpenter have gathered opinions and ideas from
their partners, employees, advisors, and friends. Now they have to make a
decisionshould TopDog go global? And if so, what approach would be most
effective? Theres a growing market for RCA software overseas, and new
companies such as FastData will soon be cutting into TopDogs U.S. market share
as well. Samantha Jenkins isnt alone in her belief that TopDog has no choice but
to enter new international markets or get eaten alive. Others, however, are
oncerned that TopDog isnt ready for that step. The companys resources are
already stretched to the limit, and some advisors have warned that rapid global
expansion could spell disaster. TopDog isnt even well established in the United
States, they argue, and expanding internationally could strain the companys
capabilities and resources. Others have pointed out that none of the managers
has any international experience and the company would have to hire someone
with significant global exposure to even think about entering new markets.
Although Mary tends to agree that TopDog for the time being should stay
focused on building its business in the United States, Ari has come to believe
that global expansion of some type is a necessity. But if TopDog does eventually
decide on global expansion, he wonders how on earth they should proceed in
such a huge, complex environment. Sam, the sales manager, is arguing that the
company should set up its own small foreign offices from scratch and staff them
primarily with local people. Building a U.K. office and an Asian office, she asserts,
would give TopDog an ideal base for penetrating markets around the world.
However, it would be quite expensive, not to mention the complexities of dealing
with language and cultural differences, legal and government regulations, and
other matters. Another option would be to establish alliances or joint ventures
with small European and Asian companies that could benefit from adding RCA
applications to their suite of products. The companies could share expenses in
setting up foreign production facilities and a global sales and distribution
network. This would be a much less costly operation and would give TopDog the
benefit of the expertise of the foreign partners. However, it might also require
lengthy negotiations and would certainly mean giving up some control to the
partner companies.
One of TopDogs partners is urging still a third, even lower-cost approach,
that of licensing TopDogs software to foreign distributors as a route to
international expansion. By giving foreign software companies rights to produce,
market, and distribute its RCA software, TopDog could build brand identity and
customer awareness while keeping a tight rein on expenses. Ari likes the low-cost
approach, but he wonders if licensing would give TopDog enough participation
and control to successfully develop its international presence. As another day
winds down, Weiner and Carpenter are no closer to a decision about global
expansion than they were when the sun came up.
Solusi Samantha :

1. Perusahaan seharusnya membuat kantor cabang di Negara yang akan

dituju. Dan perusahaan sebaiknya merekrut orang local yang paham
mengenai pangsa pasar yang ada di Negara yang akan dituju. Akan tetapi,
dengan adanya lingkungan, bahasa, hukum, dan regulasi pemerintah. dll.
Dapat menyebabkan biaya tinggi dengan adanya kebutuhanyang
disebutkan tersebut.

2. Perusahaan sebaiknya beraliansi dengan perusahaan perusahaan kecil di

eropa dan asia yang dapat menambahkan keuntungan dari penambahan
aplikasi RCA pada suatu produk yang dihasilkan perusahaan yang berada
di Eropa dan Asia tersebut.

Solusi Partner:

1. Untuk mendapatkan biaya rendah, partner menyarankan bahwa sebaiknya

mempunyai brand lisensi sendiri pada Topdogs software untuk
mendistribusikan ke luar sebagai jalan untuk ekspansi di internasional.
Dengan memberikan hak dari software RCA pada perusahaan asing untuk
memproduksi, memasarkan, dan mendistribusikan software RCA. Ari
menyukai biaya yang rendah, tetapi apakah lisensi akan memberikan
partisipasi yang cukup pada topdog dan bagaimana pengendalianny jika
perusahaan terus berkembang.

Solusi Kelompok :

1. Topdogs software dapat melakukan lisensi dan topdog dapat membuat

webite resmi serta memberikan free trial untuk menarik konsumen.
Dengan adanya web ini, diharapkan dapat mempermudah untuk
memasarkan produknya secara global, solusi ini akan memberikan
dampak biaya yang rendah.
2. Sebaiknya Topdog beraliansi dengan salah satu perusahaan besar yang
berada di dua benua yaitu Eropa dan Asia. Dengan adanya kerjasama
akan memudahkan topdog dalam menjual software. Meskipun terdapat
risiko, akan tetapi rsiko akan ditanggung kedua belah pihak dimana
prosentase risiko berdasarkan kesepakatan.
3. Setelah dirasa Topdogs software mampu mengusai pasar yang berada
pada negara yang dituju, barulah Topdogs software membangun kantor
cabang di Negara tersebut.