description

Neticle is a social listening and business intelligence tool based on sentiment analysis technology. After becoming the market leader in Hungary, Neticle considers either entering another geographical area or extending its product portfolio. Both options provide great opportunities but also risks.

Citation Note

Based on field research; 20 pages.

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Objective

After the case, students should be able to analyze and reflect on: 1. The implications of various growth strategies and how entrepreneurs with limited resources should deal with the trade-off between them. 2. The capabilities required to make international franchising possible and how different theories can shed a different light on the attractiveness of each entry mode. 3. The general importance of building capabilities over time and pursuing different paths of growth. 4. The financial possibilities and decision a firm needs to make in order to grow.

Abstract

Neticle is a social listening and business intelligence tool based on sentiment analysis technology. Developed by a team of four from Hungary, the software offers some exclusive features and great accuracy in social listening for Hungarian language content. The company, Neticle Technologies, has grown rapidly since attracting its first paying customer in February 2013. It had 54 corporate customers and 10 employees by the end of 2014, acquired mainly through organic growth. After becoming the market leader in Hungary, the issue of future growth was brought up into the schedule. For the next step of growth, Neticle could either enter another geographical area, or extend its product portfolio. Both options provided great opportunity but also certain risk. Because of resource constraints, Neticle thought they should prioritize and focus on one approach at a time. CEO Péter Szekeres and his team had to decide which step to take first: product line expansion or internationalization?

Type
Case Study