Acme Software (Scenario)
Acme Software is a U.S.-based maker of software products for the health care industry. Recently Acme has been investigating whether it would be beneficial to internationalize some of its value-chain activities. Acme hires a consulting group to help determine which, if any, value-chain activities could be conducted abroad to promote business growth. The consulting group identifies two health care software development companies in India that could provide programming services at a lower cost than Acme's current expenditures for programming. In addition, the consultants conduct international market research that shows that German health care companies have a strong demand for the type of software that Acme offers.
-Which of the following would be most important for the consulting group to consider when deciding whether to recommend that Acme internationalize its sales efforts to Germany?
A) Will Acme save money on advertising by targeting small rather than large companies?
B) How intense is the competition from German companies offering similar products?
C) What type of training is received by programmers in software firms abroad?
D) Is employee empowerment culturally favored in Germany?

Question

Quizplus · Accepted Answer

The intensity of competition from German companies offering similar products is crucial in determining the feasibility and potential success of Acme's international sales efforts in Germany. Understanding the competitive landscape helps in strategizing and positioning Acme's products effectively in the new market.

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