Market Opportunity Report of ITSM Corp in Papua New Guinea Assessment Item 2 Answer
The ITSM Corp is an Australian based IT services and solutions provider, which has been providing its services to almost 43 countries and 165 cities. This report deals with the evaluation of the market expansion of the company to Papua New Guinea for increasing its business As per the assessment, there are some political, cultural and ethical concerns that are required to be evaluated for ITSM before making an entry in the country for its market expansion. It has been evaluated that there is an engagement of poor legal structures and standards, which has created barriers and issues for small and medium-size business entities to enter and operate in the country. The report states ITSM requires more concerns over e-waste and introduce proper collaborations for increasing its scope and opportunity for entering into the market along with developing its expansion within the country. The report states ITSM requires more concerns over e-waste and introduce proper collaborations for increasing its scope and opportunity for entering into the market along with developing its expansion within the country.
Introduction to the report
The core objective of the international business is to increase its bottom line through the expansion of business in the global marketplace. In this assignment, the increase in brief market research and information gathering on opportunity and scope development for business expansion in the planned market or country. In this report, the discussion is based on Smart Grid product of ITSM Corp in relation to increasing product expansion in Papua New Guinea country.
ITSM Corp (Information Technology Services Management) is an Australian based strategic information technologies, which are seasoned for large multinational entities and middle-tier business entities operating in the marketplace. It is specialized in information technology infrastructure management that has been founded in the year, 2010. The company is focused on providing hardware, software and IT solutions to small, medium and multinational business entities in the marketplace. The company’s mission is to deliver quality based and best options for execution and improvement of IT infrastructure in the marketplace (ITSM Corp., 2019). As per the analysis, the core products of the organization includes infrastructure management system, hardware maintenance, backup and risk recovery IT system, hyper convergence, cloud management, workload management system, computing support for the end user, IT services and solutions along with campus IT management services are provided under the company. In the recent year, the company has introduced the Smart Grid project, which includes IT portfolio services such as hardware supply solutions, hybrid IT solutions, multi-vendor, multi-platform solutions, cost-efficient hardware and software solutions. The company is operating and availing its product and services in about 43 countries and about 165 cities in the international marketplace. In the international marketplace, the company is known for its IT services and solutions for including IT applications from on-premises to the cloud computing system (ITSM Corp., 2019). It has evaluated that Go Live, Go live support, IT test and solutions, IT infrastructure planning, upgrading or solutions to the IT services are some of the international market’s IT solutions availed by the company. The Asian market has increased demand for IT solutions and services specifically in India, China, and Bangladesh, which has increased the revenue of $140 billion in the year, 2016. The Asian market has increased its demands over IT solutions, hardware, software and corporate IT requirements, as these countries have increased their pace of growth and development in the global marketplace. ITSM Corp has been planning to introduce its product in Papua New Guinea, as the GDP of the country has developed by 4% in the present year (PNG in 2017). The information technologies have been one of the cores that play an important role for the business units operating in Papua New Guinea. It has observed that government of the country has engaged several collaborations for improving the information technologies that could increase the GDP of the country in the marketplace. Thus, it is observed that there is a demand for IT services in the country for boosting GDP and growth of the nation. It could be evaluated that ITSM Corp has a potential scope to enter into the market for providing Smart Grid portfolio of IT services in the country to increase its market’s reach and expansion.
Introduction to Papua New Guinea
Papua New Guinea is an Oceania country, which is situated in half eastern part of New Guinea; it is surrounded by countries like Indonesia and Malaysia. The country has several natural resources including renewable energy, minerals marine products and forest materials. It has included high mountain ranges, valleys, islands, swamps and high-cost infrastructures development. The government of the country has made a continuous investment in developing the infrastructure of education, energy, healthcare sectors, information communication and technologies. It has evaluated that the country includes cash crops and substances from the agriculture unit that delivers 85% of population livelihood; it contributes about 30% of GDP growth of the country (PNG, 2019). The culture of the country includes a mixture of diverse styles, cultural expressions, arts, weaponry, costumes, music architectures and many more. In Papua New Guinea to PNG, the usage of information technologies is slow but making a rapid increase in the market. There are several business units such as manufacturing sectors, preferred to be a different one. The infrastructures and solutions are being set up for increasing their productivity and quality of goods in the marketplace. It has observed that there has been a rise in the demand for IT services by 4% in the market by the year of 2015, as mobile and smart-phone device and uses has made an increase up to 47% from the year of 2007 to 2015. According to World Bank statistics, the 7.8% of population’s preferences IT services and information and communication technologies are usually seen online through the usage of smart devices and internet in the country (Owyinstitute.org, 2019). The IT services and communication networking provides the companies for witnessing a rise of 6.2% in GDP with the increase in usage and emergence of information technologies in the country. The country has seen the transformation in the business units and rapid rise in the business sectors with the engagement of cloud computing, mobile technologies, internet of things and e-commerce businesses. It has evaluated that there are trillions of internet of things devices, which are connected from the cloud computing services for storing, sharing and transferring data. In most of the cases, the business professionals and business units are taking interests in the usage of cloud computing in the country (Levantis, 2019). The better security, decision-making accuracy of proper information, data centre and other IT solutions are abreacted the business units operating in PNG to engage IT infrastructures for rapid growth and development.
Economic / Financial Analysis
The governmental bodies of PNG are focused on developing GDP, and country’s economic conditions, which have been introduced in collaborations and partnerships with other countries. For example, India and PNG have entered into a partnership in regards to develop the IT infrastructure in the country. Thus the political stability is strong in the country which might help ITSM corp. for the entrance within the market and generate business from the PNG marketplace. In addition, there is a necessity of governmental regulations and standards for boosting and supporting the IT infrastructure to increase the economic condition of the country by attracting foreign business entities to make an investment in the country's IT units (Lane, Follett & Lindsay, 2018). The change in regulations and standards of governmental bodies affects the operations and performance level of business entities in the marketplace. However, in the case of PNG, the governmental support increases the opportunity for ITSM for making market expansion and revenue generation by providing quality IT solutions for the business units operating in PNG. In addition, the international trade system plays an important role that makes an impact on the business entities to operate outside the nation to increase their contribution over GDP development of Host country. In the case of PNG, the international country trade of the company has increases as there has been an increase in export of $ 8.9 billion and imports are evaluated as$ 3.55 billion in the present year. The company has made a positive international trade balance, which states ITSM might be able to increase its operations and avail its products in the country easily. However, the trade complexity of the country also suggests that an increase in the economy might also result in an increase in market competitions, which decrease the scope of market share for ITSM in PNG. In the present year, the company revenue has been evaluated as $ 6.8 million in the market, which has increased from nearly $ 4 million value in the previous year of 2017. It has evaluated that ITSM has made steady growth in the marketplace that might help the company to increase its market expansion in the international market of IT services and solutions.
Political & Legal Analysis
The global economy has been stable and growing in regards to every market, the IT industry itself has made a rise of $5 trillion in the present year,2019., Thus, there is an overall economic and political stability in the market, which help ITSM to increase its international market by providing its IT services and Smart Grid portfolios in the global market. As per the observation, the political system of PNG is observed as complex and diverse that have an impact on the bureaucracy and regulatory environment of the country. Thus, it might be difficult for ITSM to make a proper entry in the IT market due to complex nature of regulations and standards, although the increasing attempt to global collaborations and demand over IT solutions might increase the scope for the entity to perform in the marketplace (Hayward-Jones, 2019). As per the legal system, employment laws, labor laws and business regulations and standards affect the operations and management of the business entities. It has observed that for IT professionals the market is seeking for talented and knowledgeable personnel for increasing quality and performance of IT product and services in the market. However, the increased employment rights such as employees equality, equal opportunist, financial benefits, job securities and other health and safety acts have increased the cost of employee revenue for the IT companies such as ITSM Corp. In case of PNG, there are IT companies operating in the market seeking for talented IT professionals, as IT has become one of the important economic growth tools the governmental bodies have increased investments in IT education and learning, which has to deliver talented IT professionals in the market (Blog – ITSM Corp., 2019).
Social, Cultural and Ethical Analysis in Papua New Guinea
According to the societal trends, there has been a rapid growth in the population of the country; there has been growing urbanization that has been seen in the country, which might have affected the declination in the service deliveries to increasing populations in the country. As the country is counted as one of the underdeveloped countries, the big improvement and economic development still might not have affected the development of lifestyles and living of people. It has evaluated that GDP and per capita income has made a little difference and positive change, after the independence and freedom from the Australian land. The income sources of populations are also stated indifferently from one another. Thus the country population might require more years to made development in the market (PNG, 2019).This might be one of the major reasons for the increase in demand in IT, ICT and IoT for improving the communication and accuracy of lifestyles of the people in the country. In respect of cultural aspects, the country has a diverse culture largely residing in the rural areas.. Due to the presence of different culture in the country, every group of people have their own language, style of communication, art and interest towards different cultural, beliefs and events. As per the ethical considerations, the country introduces different institutions and governmental centers to engage a reliable code of ethics in respect of personal and professional courtesy of individuals in the country. In the code of ethics, loyalty towards governmental regulations and laws made for the population, equality to citizens and regulations over illegal activities and behavioral approaches were included. As per ethical observations, most of the population of the country is male-dominated society. Thus ethical considerations are stated as quite complex, as there is some sort of misbalance between providing equality opportunities (Scudder, Baynes & Herbohn, 2019). It has assessed that age-old cultural aspects adds accustomed ethical observations in several parts of the country. It has evaluated that there is limited accessibility from the outside world by the country, which reflects the business divisions and flow of international investment has a limited scope in the country to entry and make positive growth in the market. It might require more years to establish reliable, ethical standards in the country to boost its economic growth in the marketplace
The development of information technologies has provided scope and opportunity for the business entities and country to improve the overall GDP and economic conditions. The Asian countries have increased interests towards IT services and solutions in regards to improving the country economy. However, the cost of information technologies has become one of the issues faced by the business units operating in the market (Breheny & McQuaid, 2018). The IT infrastructure, data centre and server management centers require huge investment, which directly affects company production and business expenditures increasing the pricing of the products in the market. Thus, the small business entities in PNG in order to develop their IT systems are unable to fix a proper budget for its infrastructural development in the market (Macdonald, 2018). The barrier or issues of technologies are also affecting the loss of workplace ethics and flow of proper productivity in an organization, operating in PNG. As listed underdeveloped countries, PNG has recently experienced IoT, internet and IT solutions, which has declined the interest of workforce, as social media has become one of the focus and interests of workers. The skills and talents of employees are becoming unused, which affecting the business productivity and performances in the marketplace. The internet and social media have become one of the prior media of news and world events. Thus the number of news media interested population has been decreasing. It determines the fact that the number of radio listeners and TRP of local media news channels and newspaper have decreased in the country. Thus, the emergence of technologies’ has made disruption over media sectors and other information sharing sectors such as news publishing houses in the market (lowyinstitute.org, 2019).
The IT has increased the better working procedure, gathering and sharing information whether they are for personal or professional purposes. However, environmental concerns have been increased in the marketplace, which might be observed by the management of ITSM Corp. In the marketplace, the IT and internet include surfaced frequencies, which affect different layers of the environment. It has observed that internet network frequencies usually affects the environmental factors; in addition, the organizations specifically ITSM requires more concerns over e-waste. In the marketplace, the consumers are seeking for more green and environmentally friendly technologies; there are different organizations that have put concerned over green technologies. Thus, ITSM has options to develop green IT solutions, software and services for meeting sustainably of the organization (ITSM Corp. 2019). It has been evaluated that an effort towards increasing the business sustainability also reflects a constant focus on the benefits of society surrounded. It has observed that for making a successful market entry in PNG, ITSM Corp. might require to increase their concerns and focuses towards societal development, which might relate with the population of the nation. It has observed that recycling and management of e-waste is also a reliable option, which might be used for increased accuracy and performance of ITSM Corp in the marketplace. It is one of the ecological factors, which might be used by IT service providers in the country for increasing support towards environmental development of PNG in the global marketplace.
As per the market analysis, PNG has been facing some of the basic issues, which is needed to be elaborated. It might help ITSM to check its strategies for entering in the country for providing IT solutions and services to the business units operating in the country. One of the core issues that have been faced by the country is overpopulation, which is likely to rise by 30 million by the end of 2050. It has evaluated that there is an engagement of poor legal structures and standards which has created barriers and issues for small and medium-size business entities to enter and operate within the country. The regulations and poor governmental policies might have one of the issues that have limited foreign investments in the country. Thus, ITSM might require low-cost margin strategies for making a proper place in the market and enter the country for business (PNG, 2019). There are various challenges undertaken by the government to solve at a time, which also has created a form of chaos and mismanagement to resolve any kind of country-related issues. The complex nature of the governing body might have created hurdles to make growth, although the country is rich in minerals, resources and substances, which have the potentiality to increase its economical conditions. Thus, there is a reliable scope for ITSM for entering within the market to engage its IT solutions and Smart Grid portfolio using consumer base pricing strategies to increase the attention of business units that will be probability for ITSM potential customers.
SWOT (Strengths, Weaknesses, Opportunities, Threats) Analysis
ITSM has increased its brand value through its IT solutions and products in the market; the company provides its IT solutions in about 43 countries and 165 cities. The company has certified IT and project management professionals providing qualified resources and services. It provides multiple pricing options for its consumers to increase the consumer's choice of purchase.
Not enough information is provided in company websites such as sustainability, investor’s relations and other service-related activities, which might reduce confidence and reliability among consumers in the market. There is an absence of published reports by the company end, which might hurdle company in gathering investing funds from the market (Prwire.com, 2019).
Increasing demand for IT solutions and services in Asian countries might develop an opportunity for growth and development for the company. There are alternative IT products and services such as IoT and ICT which could be invested to expand its product line.
One of the closest competitors of ITSM Corp is IT Asset Management Group, eReco, CX Tec and Potomac Metals are providing bit stiff competition in the Australian marketplace. It was observed that increasing concerns over IT impact on the environment has impacted on the operations and regulations of reworking frequencies of the company
The report introduced market analysis briefly and evaluation on Papua New Guinea for observing the scope of an IT company ITSM Corp to enter into the market. In the analysis, the country has a potential scope of development although disrupted governmental policies and governance might be an issue for the organization to enter and operate within the country. In the report, the ITSM business and market performance have been highlighted to evaluate the scope and opportunity to enter into Papua New Guinea IT industry.