based on field research; 15 pages
Learning objectives:
The teaching objectives of the case can be summarised into three main categories:
The objectives within each topic are described in detail in the following paragraphs:
Teaching objective 1: Market selection
The case shows the reader the importance of selecting the right market for young enterprises while internationalising. The provided information of the two markets as well as further analysis for example by applying the CAGE distance framework and Hofstede’s dimensions of national cultures allows the reader to evaluate the two prospective markets. Taking the above mentioned concepts into account when selecting new markets might lead to a more holistic picture than an analysis simply based on traditional selection metrics such as potential sales.
Teaching objective 2: Internationalisation speed
As indicated in the case, not only the right market selection is crucial but also the speed with which new markets are entered. The case encourages students to think about the trade-offs between fast and slow growth.
Teaching objective 3: Networks
The third teaching objective is to demonstrate the importance of a network in pursuing financing as well as expansion opportunities of new ventures. The network includes the entrepreneurs’ contacts as well as the investors’ networks in terms of access to capital, knowledge and reputation.
A shared passion for outdoor adventures drove three young men in Switzerland to found TrekkSoft in 2010 – a company that offers an integrated software solution for online bookings in the tour and adventure segment – with the ambition to become a dominant player worldwide. Despite serving customers from all over the world, TrekkSoft had only established one subsidiary in the U.S. in the four years after its inception. In October 2014, the second financing round was approaching. The founders knew that further geographical expansion was crucial to satisfy the investors’ high growth expectations, but internally they disagreed on which market to target: Mexico or Australia? Although they always had a one-market-after-another approach, investors were pushing for faster expansion, which led to another question: Should they go in the direction of both markets? The case shows students how important the market selection process for internationalising startups is and at the same time how company growth is influenced by the speed of the internationalising process. From an entrepreneurial perspective the case demonstrates the need of finding the right balance between investors’ demands as well as founders’ expectations. In addition, the case allows students to understand the relevance of personal and professional networks.
TrekkSoft, a Swiss company that offers an integrated software solution for online bookings in the tour and adventure segment, aspires to become a dominant player worldwide. With the second financing round approaching, TrekkSoft has to expand internationally fast to satisfy investors’ high-growth expectations. The question is whether to first enter Mexico or Australia.
