Business structure analysis and internationalisation strategy development for Kontrax JSC, Bulgaria
The dark clouds of recession have spared none and Bulgaria is no exception to that. Kontrax, which relied heavily on public sector projects for its ICT solutions and System Integration business, is experiencing significant loss of revenue and drop in margins given the current economic scenario. Thi...
| Main Authors: | , , |
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| Format: | Dissertation (University of Nottingham only) |
| Language: | English English English English English |
| Published: |
2011
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| Online Access: | https://eprints.nottingham.ac.uk/24919/ |
| Summary: | The dark clouds of recession have spared none and Bulgaria is no exception to that. Kontrax, which relied heavily on public sector projects for its ICT solutions and System Integration business, is experiencing significant loss of revenue and drop in margins given the current economic scenario.
This study aims to assist Kontrax�s Board of Directors in their pursuit of growth in domestic and international markets along with an independent review of the firm�s business structure. In order to do the same, the firm�s resources and capabilities are identified to understand the sources of competitive advantage. With inputs from face-to-face meetings with the government officials in Macedonia and Kosovo supported by the PEST and CAGE analysis, it is determined what the firm would need to succeed in the new markets and how can these necessary resources be transferred or created there.
In order to exploit growth opportunities, benefits by implementing a customer value proposition are put forward after conducting a detailed analysis for Kontrax�s customer feedbacks, products and services offered. This will not only help in creating and communicating value to its existing customers but also to target new customers in home and international markets.
The study help in formulating an internationalisation strategy supported further by the Triple-A model. It is evident from the analysis that the new markets are in different stages of development and have characteristics different to the home market of Bulgaria. Also, it is seen from the competitor, financial and portfolio analysis that services and application solutions are high margin segments and are forming major focus area of the industry as well as the markets.
Based on all the study conducted, a list of recommendation is provided to the Kontrax management. The recommendations suggest a direction to the firm on where to look for growth opportunities, how to exploit them along with the necessary shift in focus, and how to proceed with the internationalisation strategy given the uncertainties involved. |
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