||When you are looking to invest in startup companies, you run into so many companies with impractical business models. It is easy to find startup companies with business plans that do not address the competiveness of their products or services, analysis of their main competitors, marketing activities, and other crucial areas. As a result, companies often fail to receive investments that they need.
Most recently in Korea, IT companies targeting the global market has already been an old trend. Companies know that the local market is not big enough for them to achieve a success and with this sad realization, they are setting the new goals of entering the big markets such as the United States or China.
However, the question of whether those companies are carefully preparing themselves for the global market soon arises. In order to enter the global market, it is necessary to research the market size, key competitors, required technologies, main partners, and government regulations of the specific country. The business models that are derived from the systematic use of information can only make a firm competitive in this world.
Let’s take a look at the following two examples.
Company A is an internet search engine company and it is formed with young intelligent engineers. The firm’s outstanding technology was widely recognized from the beginning and they were able to receive huge investments from both local and foreign investors. With the investments, they were focusing on developing better technology. However, in the course of the business, they have decided to pursue other business models that were different from the original plans and they came to see me to get some advice for the global business market.
After analyzing Company A’s technology and business models, it was obvious that the business models contained irrelevant information and objectives, apart from their main goal of selling the products to leading corporations. After series of consulting efforts to veer off to another route, nothing was decided. We are currently waiting to see how things go.
Company B was a software developer also formed with high caliber engineers and had operations targeting the global market. However, shortly after looking at the business plan, it was noticeable that they did not have any clear and accurate information about the overseas market. Their business was in the stagnant stage due to the fact that they were relying solely on personal networks rather than systematic information.
When planning and executing the business operations, the importance of information cannot be ignored. It is crucial to come up with a business model before establishing a company. Also, it is imperative to figure out whether business is targeting the global market and whether to take the company IPO or push for M&A when it is in a mature stage.
Recently, global IT media group IDG initiated the online media business in Korea. Now, it is easy to obtain high quality, great quantity global information. Hope this is a valuable information for any of those who are seeking to be entrepreneurs or IT specialists, as well as overachieving students.