This case analysis is designed to encourage you to conduct an analysis of a market entry mode decision.
PSION, the British developer of the world's first palmtop computer, failed to enter the U.S. market in the 1990s. Since then it has re-invented itself, and has developed a new platform for a modularized computer. Assume that you are tasked today with advising the Marketing Manager of PSION on the question of how best to enter the US market with it's new Omnii platform. What would you advise, and why?
Use information from the background readings as well as any good quality sources you can find. Please cite all sources and provide a reference list at the end of the paper.
The following will be assessed in particular:
Your demonstrated understanding of the various forms of market entry mode and the issues associated with each.
Your ability to conduct an analysis on the basis of which you make a recommendation for a mode of market entry.
The criteria used for assessment will be those explained on the MOD01 Home page, namely:
Effective communication skills
Sources relevant to the case:
Anonymous. (2010). Psion Takes Wraps Off Modular Mobile Computing Platform. Health & Beauty Close - Up. Jacksonville: Oct 4. Retrieved from the Proquest database on May 22, 2011.
Anonymous. (2010). Psion Launches Omnii Platform. Professional Services Close - Up. Jacksonville: Sep 30. Retrieved from the Proquest database on May 22, 2011.
Wray, R. (2010). Psion's new take on internet business. Psion is encouraging its customers to adapt its products and then share that knowledge with everyone online. Wednesday 14 April. Viewed on May 22, 2011 at: http://www.guardian.co.uk/business/2010/apr/14/psion-new-approach-to-internet-business
Anon. (n.d.). Psion PLC, viewed on May 22, 2011 at: http://www.fundinguniverse.com/company-histories/Psion-PLC-Company-History.html
The selection of an overseas market and the mode of entry into those markets lie at the core of international marketing strategies for organizations. Growing intensity of competition at a global scale and the increasing dependence of companies on international business for growth and survival necessitates for improved means of entering an overseas market. This paper presents an analysis of a market entry mode decision for PSION, a British developer of the world's first palmtop computer, into the US market.
Psion PLC, headquartered in London, UK, was founded in 1967 by David Potter an avid entrepreneur. Through its numerous subsidiaries the company provides enterprise mobile computing solutions, integration services and product maintenance and support services globally. Its products includes handheld computers, network management products, connectivity solutions, rugged vehicle mount computers, and tablets PCs (Anon; Anonymous, 2010a). Psion PLC sells its products through application partners, distributors, value added resellers, third party network of systems integrators, as well as direct sales force. The company has a wide range of strategic relationships with a range of technology partners such as Cisco systems, Vocollect, Marvel, Microsoft, SAP and Aruba Networks (Yahoo Finance: Psion PLC, 2011).
Psion PLC was the developer of the world's first palmtop computer. It though failed to enter the US market in the 90s due to intense competition from US companies such as 3Com (Robotics) and Microsoft Corporation. It has since then reinvented itself developing a new platform for a modularized computer. The latest Omnii Platform with XT10 handheld is a "major strategic milestone for the company" which allows higher customization levels than any achieved in the industry before (Wray, 2010; Anonymous, ...
International marketing for PSION are examined.