International Growth for Continued Success: A Market Analysis for a Swedish IT Consulting Firm
Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
During 2012 a Swedish IT-Consulting firm, called SweIT in this report, investigates possibilities for organic growth and establishment of new offices in Europe. SweIT is a fast-growing company that was founded 1999 in Stockholm and that specialize in business-critical IT solutions with customized software development for a variety of industries.
The master thesis consists of a market analysis of three European cities; London, Helsinki and Zurich, in which it could be of interest for SweIT to establish a new office in. The aim of the investigation was to propose guidelines for a potential new establishment in each of the three cities and finally give a direction of the most suitable market for SweIT during late 2012 to answer the research question;
"Which European market would be the most profitable for SweIT to establish a new office in during 2012?" The study includes an investigation of market potential, recruitment possibilities, laws and regulations but also costs and prices in each of the markets. A large share of information regarding these subjects has been collected from many different sources and analyzed objectively to create an accurate picture of trends and the existing opportunities and threats. Theories regarding social networking, client following and market selections have been used to proof the importance of sales-potential and knowledge of current market situation and customers when entering a new market as a service firm, and also to lift the existing risks with an entrance to front.
The final recommendation is to enter Helsinki during late 2012 due to a high market potential and lower entry barriers compared to London and Zurich. The high market potential is based on the current fluctuations in the Helsinki market, e.g. with the fall of Tieto (Finnish consulting firm) and the restructuring of municipalities which creates opportunities for remaking public procurements. The technological demand in Finland fits the current core competence and abilities of SweIT well and there should be many opportunities for business. The high potential is also connected to the geographical and cultural closeness to the head office in Stockholm, as well as the abilities for making successful recruitment of local and young talents. Competitors’ and other international companies’ recent successful entries in Helsinki confirms that the Finnish IT industry is open and receptive for international companies and competition. The entry barriers are also stated to be lower in Helsinki since many competitors are smaller sized and the demand for special consulting skills are known. This case concludes that to be able to grow organic in new markets as a service firm, key factors as e.g. local commitment, knowledge of barriers and social networking, must be considered in order to be successful and turn entry barriers into opportunities. Change in the market creates gaps, gaps creates opportunities
Place, publisher, year, edition, pages
2012. , 108 p.
Market analysis, IT consulting, Organic growth, Profitable growth, Market entry, Internationalization.
Economics and Business
IdentifiersURN: urn:nbn:se:kth:diva-144094OAI: oai:DiVA.org:kth-144094DiVA: diva2:711039