The Situation Neovation is a Canadian application service provider of software-as-a-service. During its first full year of operation, 2013, the company realized sales of slightly less than $1 million. While it currently offers two different cloud based applications, company president Dan Belhassen believes its SmarterU.com e-learning platform offers the most promise for the company to meet its overall sales growth of 50% a year. Sales to date of SmarterU.com have been predominantly in Canada and the U.S. Belhassen is now looking to off- shore markets such as Australia and the U.K. and India as potential e-learning opportunities. He knows a thorough market assessment is required. While he has already identified several questions that must be answered for the assessment, he also is concerned that there are other factors that he hasnt identified that must be addressed. The Company Neovation Inc. is a Winnipeg, Manitoba based research and development company. It was established in 2012 and is a spin-off of its parent company Modern Earth Web Design in business since 1999. Company president Dan Belhassen established Neovation as an independent unit to develop cloud-based solutions for the growing demand for on-line products and services. Neovation represents the new definition of service that has developed from new technology platforms. It is also globally accessible and easier to administer. This model of delivery has increased in demand with the expansion of broadband services globally. The expansion allows for ASPs such as Neovation easier access to serve their clients from a distance. Neovation currently employs 16 people in Winnipeg, as well as a Vice-President of Sales situated in Ottawa. Utilizing the services of half a dozen contractors in the United States and overseas, neovation also has sales offices in Montreal and Singapore. The Singapore sales office operates through an affiliate. The connection with that affiliate was serendipitous, arising from a chance meeting at a trade show. Service delivery is supported by a world-wide technical monitoring network utilizing multiple servers in the United States and the United Kingdom. Neovations vision is to be the globally recognized market leader for on-line learning. To achieve this vision, the company aims to grow sales by 50% per year from its current base of approximately $1 million in 2013, its first full year in operation as a separate company. Competitive Advantage Neovations competitive advantage is its strong customer service ethic one that focuses on offering a great customer experience by building strong sustainable relationships with its customers. Competition There are predominantly three types of competitors in the e-learning marketplace. The first type is comprised of numerous small cloud-based companies offering no direct contact with a person who can assist in answering questions and trouble shooting. These competitors have found their niche working with small companies and organizations. The second type is at the other end of the spectrum companies such as SAP that target multinationals and very large enterprises to deal with complex issues. Neovation has established itself in the third type, targeting the medium and large enterprises.

Neovations vision for SmarterU.com is to be the branded market leader globally recognized as the go-to company for on-line learning and knowledge. The Pathway to Brand Leadership New customers have been reached primarily utilizing four different methods: regional sales calls, targeted e-mails, referrals and trade shows. Trade shows have resulted in only limited success. Belhassen says that while many potential customers stop to enquire about the service, this method has not provided the return on investment the company had hoped for. Referrals have proven to be more successful. Neovation found that tapping into trade associations particularly in the U.S. is important. Referrals from these associations have brought credibility and opened doors. The key question from prospective clients is value for money spent. At the beginning they question how a service can be so affordable but offer the value it claims. Challenges Ahead The current geographic market for SmarterU.com is predominantly Canada and the United States. As a result, service lines are available from 8:00 a.m. to 5pm CST, with emergency support available 24 hours. While the company deliberately set up sales representatives in Quebec and the United States, the Singapore office is not strictly devoted to Neovation and its service offerings. Belhassen soon discovered that companies in Singapore, while often global in reach, are not eager to work with a service company that is twelve time zones away. Understanding the business culture and practices in that region therefore were eye-openers for Belhassen. The result has been lost business. While Neovation believes that SmarterU.com has a better service offering and fit with company needs in Singapore, local companies are winning the contracts because they are on the ground connecting with key decision makers. One of the key challenges faced by Neovation is the availability of customer service representatives. While the hours of operation meet the needs of the North American clientele, the offshore clientele is not at the level to warrant 24-hour regular access which would address the needs of an off shore clientele. Eyes on Expansion While exploring off-shore markets is new to Neovation, Belhassen believes that either the United Kingdom or Australia or India represent opportunities for SmarterU.com, possibly Australia in particular. Based on personal experience and working with current prospects, Belhassen believes that Australia may present a better opportunity in that it appears to be a similar marketplace to that of southern Canada and the northern U.S. As well, Belhassen is of the view that Australia is a monoculture utilizing English as the language of business. He believes however that the U.K. has evolved into being so multicultural that its business community operates in a plethora of languages. Belhassen believes that these export target markets for SmarterU.com warrant further analysis. It will be important to understand not only the business culture but the best method for market entry. His first inclination is to identify and work with delivery partners initially and as sales grow, establish a Neovation office to serve that clientele. The need for local presence in some cultures appears to be more important than access to 24 hours service availability. As well, Belhassen learned early on the need to understand the cultural differences in potential markets. In Singapore for instance, he discovered that it is inappropriate to discuss business with a client until the third

meeting. He also found that the ability to understand these differences can help avoid not only amusing but damaging misunderstandings when conducting business in a different country. To appear credible in the marketplace and secure referrals, however, Neovation needs to appear local familiar with the regulatory environment and the domestic lingo. Neovation is a small company competing in an international marketplace. Next Steps The Singapore experience taught Neovation that the time and effort to develop and operate in a country with a small footprint will hurt them. The company knows now that it must be much more strategic as well as make decisions based on sound research and analysis. The question on Belhassens mind is whether Australia, the U.K. or India represent a sufficient opportunity with respect to SmarterU.com that will help the company meet its revenue goals.

Kindly provide a SWOT analysis for Australia, India, and UK using case study above.