In this chapter, I will present the gathered data regarding the case study I have obtained partly from Internet, but mostly from personal interviews with the person is responsible for the internationalization process. First, I will present the data concerning AccelTeam Sdn Bhd, followed by the data concerning Genting Malaysia Berhad.
4.1 AccelTeam Sdn Bhd
AccelTeam Sdn Bhd located at Technology Park Malaysia. The enterprise was founded by Steven Yong in 1998. It is a premier IT solution provider with MSC Status and a Microsoft Certified Partner, specializing in Customer Relationship Management System and Business Intelligence System. Led by highly qualified professionals, AccelTeam addresses the Corporate Performance Management needs of various industries including Government, Retail, Fast Moving Consumer Goods (FMCG), Insurance, Securities, Manufacturing, Telecommunications and Healthcare services. AccelTeam is committed to help our clients in this information evolution with the key services such as Information Architecture Consulting, Implementation of Corporate Performance Management Solutions, CPM Education and Managed Services.
In 2002, AccelTeam awarded Microsoft 1st Tier ISV partner status. The Microsoft Partner Programme offers AccelTeam the technical and business support needed to help them build better products, enhance their market presence by creating worldwide demand for their products, and drive overall profit and growth. AccelTeam certified as Microsoft CRM Certified Implementor - Certified Software Advisor (CSA) Status and awarded as Honorary BI Company by Microsoft in 2004.
In 2005, AccelTeam awarded Microsoft GOLD Certified Partner. With the solution, AccelTeam helped its client to increase the agility and accuracy of its decision-making processes at critical points while being able to monitor, control and minimize operational inefficiencies. Disparate sources of information from multiple operational areas could also be automated and consolidated quickly and efficiently. Besides, AccelTeam also become received Best BI Partner by Microsoft Malaysia. They obtained Targit Distributorship, which they become the sole reseller of Targit in Malaysia. Partnership with Targit, Europe's largest pure-play developer of business intelligence products and the fastest growing in terms of revenue enable AccelTeam to become more competitive in BI market by taking the advantage of the Expertise and technology leadership of Targit.
In 2007, AccelTeam achieved CMMI Level 2 Certification. CMMI is Capability Maturity Model Integration (CMM-I) as an software process improvement (SPI) process which provide a guidance for improving on each organization's processes and the capability to control and manage the development, achievement and maintenance of products or services during software process. They have partnership with PalladiumES, which is expertise in strategy management, performance management, and business intelligence. At the same year, AccelTeam selected to be the top local CPM/BI solution provider in Malaysia by International Data Corporation (IDC).
According to the managing director/ founder of AccelTeam Sdn Bhd, Steven Yong, he started his business with RM 50,000 and only 30 employees. In return, the sales revenue for the first years is RM 80,000.
According to Steven, AccelTeam started its business in Singapore in 2003. AccelTeam invest a million in this internationalization process. The management team already had experience in delivery Corporate Performance Management (CPM) solutions projects across various industries, for example, Steven had experience in delivery Business Process Management projects across various industries in Singapore and the region. So, it is easier for them to handle the expanded business. According to latest figures provided by management for FY2003 (financial year ended Dec 31, 2003). AccelTeam recorded revenue of RM1.9 million
In 2008, AccelTeam expanded its business to Indonesia. They invested a million in this internationalization process. According to Steven, AccelTeam sales revenue for 2010 has reached 20 million with total of 63 employees at Malaysia, Singapore, and Indonesia.
The move of AccelTeam to Singapore was technology driven. AccelTeam would like to optimize their intangible asset because the technology in Singapore is somehow advance than in Malaysia. An early mover in IT, Singapore today ranks as the second most network-ready country in the world and No. 1 in Asia, according to the World Economic Forum's "Global Information Technology Report 2009/2010. IT companies from across the value chain are drawn to Singapore because of its robust intellectual property protection regime, good logistics connectivity, and easy access to global talent.
Singapore's economic condition attracted a lot of multinational company to invest in their country. Singapore is less inflected by the economy crisis and they manage to recover their economy in a short period. For example, the economy picked up in 1999 after the regional financial crisis, with a growth rate of 5.4%, followed by 9.9% for 2000. In 2003 when Singapore was affected by the SARS outbreak, a major turnaround occurred in 2004 allowed it to make a significant recovery of 8.3% growth in Singapore. Singapore is also ranked No.2 worldwide as the city with the best investment potential for 16 consecutive years. The stability of economy in Singapore can guarantied the success of AceelTeam business.
Furthermore, AccelTeam choose to enter Singapore market because Singapore's strategic geographical location provides them a vantage point for meeting the needs of a rapidly developing Asia.
On the other hand, AccelTeam decided to enter Indonesia due market expansion. According to Steven, they choose to enter this market because the market in Indonesia is huge and there are fewer competitors. According to Indonesia Information Technology Report Q1 2010, The Indonesian IT market should grow at a compound annual growth rate (CAGR) of around 15% over 2010-2014 despite a deceleration in 2009, when demand was affected by the global economic crisis.
Besides this, Steven views that Indonesia economy is growing now. This has become one of the reason he want to enter this region. Indonesia achievement during the three decades prior to the crisis was impressive. Moreover, Indonesia succeeded in acquiring and adopting new industrial technology within a short time period. This technology acquisition provided the basis for the first stage of industrial growth accompanied by high investment and growth of manufactured exports.
Another reason for AccelTeam to expand its business to Singapore and Indonesia was AccelTeam wish to spread their risk to business in other countries. They expanded into other markets in order to avoid the problem, both economic and regulatory, that they had experience or were concerned might occur in Malaysia.
Virtual Hub is a program for any sponsor seeking a unique way to reach network and IT executive visitors to AccelTeam. It enables the visitor to learn about the release of new service and the existing product which is provided by AccelTeam. It is a perfect program for AccelTeam to manage, monitor and get connected its multinational business in Singapore and Indonesia.
Steven continued that the management of AccelTeam decided to enter Singapore and establishing a branch at 2003 with the same name, AccelTeam. They came to this decision because they wanted to be able to control the whole company operations themselves compare with the joint venture. The time required to starting a business in Singapore took 3 days with only 3 procedures. AccelTeam can save a lot of time and money for them establish a branch at Singapore because Steven had 6 years of working experience in Singapore. Besides this, he had established a good relationship with other companies in same industry. It helps him in getting information and more understand on the competitors in current market.
AccelTeam did not faced big problem in establishing its branch in Singapore but the other way round in Indonesia. AccelTeam choose to establish a representative office in Indonesia, it is because branch office is not warranted at Indonesia. Representative offices are generally easier to establish than a branch or subsidiary. AccelTeam took 60 days with 9 procedures in order to starting AccelTeam business in Indonesia. Besides this, deregulation has been successful in reducing some barriers by creating more transparent trade and investment regimes, but the bureaucracy can be cumbersome.
Steven mentioned that, during the time when they started to set up a representative office at Indonesia, AccelTeam found an Indonesian to guide them on procedures for setting up a representative office. However, the Indonesian has brought them to the wrong procedure and wasted almost half a year in doing the wrong things. At last, AccelTeam decided to hire a consultant to better understand the procedure to proceed for setting up their representative office.
There are some obstacles to enter the market of Indonesia. But what attracts AccelTeam to enter this market? Steven continued that, Indonesia has a similar market with Malaysia in terms of the customer demographic, preference. So, it is easier for AccelTeam to penetrate Indonesia IT market. AccelTeam can use the similar marketing strategy for the services providing to Indonesia market.
According to Steven, CPM Consulting, a CFO focused organization, delivering best in class enterprise performance management framework for large and medium sized CFO organizations which have implemented most of the successful SAP EPM platforms in Asia is the main competitor for AccelTeam in Singapore. Vaia Consulting or PT. Vaia Indonesia is the main competitor for AccelTeam in Indonesia. This company worked for international consulting forms, corporations, banks and microfinance institutions which provide consulting services, technology services, and outsourcing services.
Steven added, sales generate from Singapore and Indonesia is about 5% from the total sales of AccelTeam. In order to compete in this global market, AccelTeam will continue improving its company performance by enhance the quality of the existing CPM services provided introducing and introducing more services to serve for more industry's customer. AccelTeam is now planning to start its business in Brunei and Thailand for market expansion.
4.2 Genting Malaysia Berhad
Genting Group is founded by the late Tan Sri (Dr.) Lim Goh Tong with the development of a beautiful highland resort, named Resorts World Genting (RWG). RWG located at the peak of Mount Ulu Kali, 2,000 metres above sea level and 51 kilometres from Kuala Lumpur.
On 31 March 1969, the late YTM Tunku Abdul Rahman, Malaysia's first Prime Minister graced the official laying of the foundation stone for the company's pioneer hotel, the then Highlands Hotel, marking the completion of the access road to Genting Highlands Resort.
The Prime Minister was impressed that the private sector, without the assistance of the Government, could develop a mountain resort for the enjoyment of all Malaysians; a gaming licence was suggested to help accelerate the development of this remote area. In 1971, the first hotel at Genting Highlands was successfully completed and was then named Highlands Hotel (now renamed Theme Park Hotel).
RWG is owned and operated by Genting Malaysia Berhad. Genting Malaysia Berhad (GENM) was incorporated under the Companies Act, 1965, Malaysia as a private company limited by shares under the name of Resorts World Sdn Bhd on 7 May 1980 in Malaysia. Genting Malaysia's company registration number is 58019-U. It changed its name to Resorts World Bhd upon its conversion into a public company on 14 July 1989.
On 30 August 1989, Genting Berhad and Genting Malaysia underwent a restructuring exercise, which resulted in Genting Malaysia's acquiring from Genting Berhad its entire gaming, hotel and resort-related operations inclusive of goodwill and other relevant assets. The shares of Genting Malaysia have been listed on the Main Board of Bursa Malaysia since 22 December 1989.
Genting Malaysia is principally involved in the leisure and hospitality business and its activities cover theme parks, gaming, hotels, seaside resorts and entertainment. The jewel of its crown is Resorts World Genting, a premier integrated family leisure and entertainment resort at the peak of Genting Highlands that attracted 19.9 million visitors in 2010 which came from Malaysia, Singapore, China, Indonesia, India, Thailand, Vietnam, Taiwan, Hong Kong and the Middle East.
. Known as Resorts World Genting, the resort offers six hotels with 10,000 rooms, over 60 fun rides, 170 dining and shopping outlets, mega shows, business convention facilities and endless entertainment - all at one location.
The six hotels at Resorts World Genting are Maxims Genting, Highlands Hotel, Theme Park Hotel, Resort Hotel, Awana Genting Highlands, Golf & Country Resort and First World Hotel - the world's largest hotel with 6,118 rooms as acknowledged by the Guinness World Records and Ripley's Believe It or Not.
First World Hotel with 6618 rooms voted as "The World's Largest" under the Feats of Engineering for Big Buildings by Guinness World Records on 2006. First World Plaza, with 70 outlets, 60 food and beverage outlets, 25 fun rides and six theme boulevards voted as Most Supportive Shopping Outlet: Shopping Complex" by Malaysia Tourism Awards 2003
Resorts World Genting was voted the World's Leading Casino Resort (2005, 2007 to 2010) and Asia's Leading Casino Resort from 2005 to 2010 by World Travel Awards. Besides this, Resorts World Genting awarded Reader's Digest Trusted Brands Gold Award for Family Tourist Attraction Category in Malaysia.
Apart from the highland resort, Genting Malaysia owns and operates two beautiful seaside properties called Awana Kijal Golf, Beach & Spa Resort in Terengganu (on the east coast of Peninsular Malaysia) and Awana Porto Malai in Langkawi (off the west coast of Peninsular Malaysia).
On 15 October 2010, Genting Malaysia completed its proposed acquisition of casino businesses in the United Kingdom ("Genting UK") from Genting Singapore PLC. Genting UK is the largest casino operator in the UK and a leading innovator in the provision of high quality, customer focused gaming. Genting UK operates 5 casinos in London under renown brands including Crockfords, Maxims Casino Club, The Colony Club, The Palm Beach and London Mint; and a further 41 casinos located within the UK provinces under 3 key brands, namely Circus, Maxims and Mint. These casinos offer visitors a memorable experience with its various slots and table games in addition to restaurants, bars and other entertainments.
On 13 September 2010, Genting New York LLC (an indirect wholly-owned subsidiary of Genting Malaysia) was selected as the developer and operator of a video lottery facility at the Aqueduct Racetrack in the City of New York, United States of America. The facility, set upon an area of 413,000 square feet will be known as Resorts World New York. Features of the facility includes approximately 4,500 video lottery terminals ("VLT"), more than 6,000 car parking lots, 2-storey food and beverage promenade with fast food outlets, café, bar and a buffet restaurant. Phase 1 is expected to contain approximately 1,600 VLTs (to be completed by late spring 2011) and be fully operational by early of 2012.