Rosetta Stone Inc.
Changing The Way People Learn Languages
Peter Bussa
MGMT 480
1. Rosetta Stone has been one of the leading language learning companies and software’s on the market. Many competitors have not been able to enter into markets due to the strategic planning it takes to decide whether it is feasible and profitable as a company to grow stronger. Rosetta stone wants to enter into the European market to expand and grow as a globalization company. To facilitate growth, the company has already protected its trade dress because its keeps it distinctively different from the competitors. Rosetta Stone has Totale, which makes it easier for entrance into the market. Totale has
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With the company where it is at now, to globalize the technology and making public would make revenue stream increase. Technology and the advancement of it, makes it easier for RST to evaluate opportunities such as mobile technology. With how this generation is going, mobile devices have changed the world, some may say better, some may say for the worse. As a company, analytical assessments of issues referring technology have always been an issue with RST. No matter what, operating expenses always seen to be high when your putting out such output in the market of what many language software’s don’t have what RST stone has. RST focused on minimizing costs and achieving efficiency as it meets its production goals and plus some more. Rosetta Stone had great research and development. Within the next few years, I believe Rosette Stone will reach out to markets and enter them with the Totale software that makes it easy for companies and humans to learn a language in the most efficient possible way. Efficiency is the core asset that the company has to embrace and keep as a leader to other competitors that make them better. They need to keep the technology development and research coming to make innovations for themselves different from others through technology, which makes the business run. We have seen an 80% increase in computer use in past 5 years.
4. Rosetta Stone has many advantages and disadvantages when it comes to
There are several emerging technologies that could help the company to gain a competitive advantage.
The R & D facilities allowed them to continuously come up with new products in the market. In my opinion they are flooding the markets with many new products, in a way they are confusing an average golf player with too many different types of golf club.
The internationalisation process of the firm has been a subject, which has been motive of study for a number of
As we can see, both alternatives imply as well opportunities and risks. If I were the decision maker in this case I would surely choose the alternative to implement the new technology that will allow the company to create innovative products.
Product Innovation – Innovation of new products had failed many times and MTI has lost reputation with Wall Street. This process had been placed on the backburner and when the CEO came on board there were only six products in the pipeline. Therefore, to be successful in the future, MTI needs to invest more in R&D and focus on delivering new products.
Opportunities: international market; co- operation with other bigger companies; launching of the new products; increasing tendency of the customer demand etc.
Given that the development of new systems can be fraught with problems and delays, there are many factors that drive organisations to develop new systems. The most important drives come directly from the companies needs and are often not related to technology, but however to technological solutions, these include:
* Employing third party for rolling out the new technologies (once they are successfully implemented at a particular location) would reduce the pressure on the IT structure and the central IT team. This would allow them to focus more on the projects which may provide breakthrough for the
In this world, all languages and dialects will be taken and woven together to produce a picture that's beauty is on a scale never before seen. It is my firm belief that to achieve this world of beauty, people in every corner of the Earth should push for the study of foreign language to be set in the mandatory curriculum for all students.
1. By going public Rosetta Stone would be able to obtain the capital required to expand the business and enter new markets. Another advantage of going public is the ability for Rosetta Stone to increase its brand’s image, awareness, and reputation. An IPO could be a good move because of the increased globalization occurring that has led to more and more people learning needing or wanting to learn different languages. Going public as the economy is just coming out of its recession could prove to be advantageous for Rosetta Stone. The case gave the example of Changyou.com going public at six and a half times its EBITDA. It also mentioned that the CEO of Rosetta Stone had concerns about being taken over if they stayed
This allows GEMS to employ low-cost talents. Since different markets would share different need and structure in medical industry but they still have some common needs and principles on product features, hence, R&D and product design are partly centralized to effectively utilize human capital and cost, and partly localized to meet the different needs and structures of medical industry in different markets.
“In the earliest phases of its build out; however, an infrastructural technology can take the form of a proprietary technology. As long as access to the technology is restricted—through physical limitations, intellectual property rights, high costs, or a lack of standards—a company can use it to gain advantages over rivals.” As Laura Acevedo notates in her article Business Benefits of Information Technology, “Companies using a first-movers strategy can use information technology to create new products, distance their products from the existing market or enhance their customer services. Companies that follow a low-cost product strategy can look to information technology solutions to reduce their costs through increased productivity and reduced need for employee overhead.” The contention is that once a technology has evolved from being considered a proprietary technology into an infrastructural technology then the differentiation from one company to the next is inevitably lost.
Looking at the financial forecast provided in the case, it appears too optimistic because the real decline in growth only happens around 2012. Rosetta Stone being as successful as they are and going public soon will entice other companies to at least follow their lead and increase the competition in the technology and educational sector. This increased competition would cause revenue growth to decline at a faster rate than what management projects because similar companies would get
Companies can decide to go global or to enter international markets for various reasons, and these different objectives at the time of entry that enable the business to produce different strategies and the performance goals, and even forms of market participation.
Proactive and aggressive potential for profit about Rosetta stone's growth, the language – learning industry produced over 83$ billion in consumer spending.