Desire2learn is the company that our university has been using over the years to provide our online content for this course and many others. The company’s recent admission of going global will ultimately have consequences to our school. It is true that the university is likely to suffer from lack of support. By going global, the company intends to expand its market to other institutions in the United States, Canada, Singapore and China. Although this is an optimistic move on the side of the company, it is prudent to point out that this may have adverse effects to our college. The huge number of learning institutions that will be dependent on the company may actually inhibit the company’s capacity. It would be advisable for the company to try gradual growth that would allow continuous assessment on the company’s capacity. However, with this rapid growth, I am convinced that our university will suffer from lack of support.
Although the company has declared its intention of going global, I highly doubt whether the $80 million dollar financial will be sufficient for this task. Just like the organization’s CEO, John Baker, asserts that there are too many companies that have come and gone, I am also of the opinion that desire2learnis also headed in the same direction. The level of competition in the sector makes me convinced that the 80 million funding may not be sufficient to make the organization a global force. For instance, Blackboard Inc, a major player in the sector is said to have swallowed rivals in the industry prior to it being sold to providence Equity for about $1.64 billion and assumption of about $136 million in debt. These figures are a clear indication of the level of finances required by a company intending to compete at the international level. In essence, it will be difficult for Desire2learn Inc to sustain a real push into the international stage with only $80 million financing.
Going global will lead to several benefits to the company. For instance, the company is expected to increase sales and profits. In most cases, the major operations will be in the host country which will lead to reduction in fixed costs and consequently a chance for growth. Economies of scale are another advantage for an organization going global. It is also imperative noting that such a move is also important in enhancing domestic competiveness as well as stretching and building marketing capability.
Although there are several merits that are associated with going global for a technology company, there are also equally important demerits that such companies must be conversant with. One of the major challenges of going global is being conversant with new laws and regulations. For instance in this case, china, Canada and United States have different rules and regulations that Desire2learn Inc. must adhere to when it ventures into the new markets. It is also imperative for the company to note that cultural barriers are also a major challenge for any organization that intends to go global. it is therefore essential for Desire2learn Inc to have a serious considerations on both the merits and demerits as it embarks on a journey of venturing into global business.
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