This chapter begins with in-depth analysis of five case companies that interviewed for the purpose of this study. The collected data is confidential because it contained sensible information about the firms. Also respondents of the case companies desired to stay anonymous and agreed not to declare real names of the firm, person, products, and use more generalized information. This section provides an analysis of cases in relation to their operations, internationalization presence and the business model. Consequently, the cases were named as A, B, C, D and E.
4.1 Firm A
The first case study A is a digital educational venture which was founded in year 2010 based in Kuopio. The motivating factor for developed this solution, firm A has identified several problems in e-learning materials in digital education sector in Finland. For instance, difficulties to use several kind of learning management systems (LMSs), hard to remember different user login and passwords to younger students. Moreover, hard to manage, share, and supervise strict e- material budgets of elementary schools. In order to provide the concrete solution for existing problems, firm A came up with one customized solution for managing e-materials more efficiently.
As per CEO, the firm builds on effort of all kind of parties like blood, sweat, and tears of founders and the team. There are 30 employees including 25 coders currently working at the firm and they are high calibre at their own subject fields. Firm A has significant presence in Finnish education system which is serving more than 50% of Finnish elementary schools in 30 municipalities with 50 publishers, and also semi-presence in few countries as piloting projects in African countries.
Firm A aims to grow organically that expanding to more schools in Finland and expanding to up- and-rise economics internationally.
However, firm do not have presence in international markets yet but planning to enter few foreign markets. Therefore, firm A’s internationalization strategy still evolving and the main motivation for internationalization decision is see Finland as small market to grow. The reason for selection of target market as African countries, as their population is young when compare to Europe.
Therefore, the firm currently piloting few projects in several countries including Nigeria, Kenya,
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and evaluating the potential of few markets like Egypt and Uzbekistan. For example, one reason is to expand operations in to African countries with the hope to support their digital education system besides the business development perspective. Therefore, both human and business perspective taken into account when establishing internationalization strategy of the firm A.
Therefore, this firm eager about next step on their internationalization decision.
Firm A follows same business model since from its inception. Its “Licensing” their solution to municipalities, Finnish schools and charge fixed price yearly from one user agreement. This model doing only in Finland. However, firm is planning to customized the pricing model when internationalization happens, behind the idea that every country cannot pay the same amount. Since this firm has been established 10 years in the industry they have enough resources to grow organically and internationally thanks to the stable income and networking and financing support from Finn partnerships.
4.2 Firm B
The firm B was founded in 2010 and soon to be 11th year of operations. The idea for developing such language learning app came into founder’s mind back in 1980’s when he wanted to learn Japanese language for official purpose but at that time there were no language software to learn foreign languages. So he decided to build a prototype with the help of his mother who was a language teacher. After sometimes later he decided to left the job as an Engineer and started to develop this product and formed a firm called B. The respondent of the firm B - Head of Talent, expressed that company have a clear vision to make an impact of people by improving their language ability and there by quality of lives.
Currently 40 employees serve the firm to achieve the company’s mission of teach the people permanently which includes pedagogical experts, language experts, business development experts and system specialists. Firm B has customers in more than 150 countries and the most popular language is English. The company’s new product English mastering app is planning for faster growth.
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At first place, firm had clear vision to expand globally soon after the establishment. As a result, firm able to made first foreign sales in 2010 (founded year) to Italy and France and nearly 50%
sales coming from outside the Finland. Firm B eager to achieve early and faster grow in foreign markets with English learning application. For instance, the firm is planning to launch new product in two English speaking countries. The respondent does not wish to disclose the target countries with the confidential consideration. Further added that not to launch this new app in Finland because they argue Finland is small market in terms of population.
Concerning the business model of the firm, it is widely accepted model within this industry. The subscription based and fixed package model is used which is charging monthly subscription amount from the per user.
4.3 Firm C
Firm C was founded in 2019 as a spin-off of University of Turku to provide the university developed digital learning solution for Mathematics for school children anywhere in the world.
University has been researched and developed digital tools for education over 15 years and found there are problems of how schools help different students to learn mathematics and to succeed in it. Therefore, University has developed an online platform with gaming features for learning Mathematics easily. As Mathematics is one of the hardest and bored subjects for students all over the world, this offers cost-effective solution. Moreover, this solution helps student to learn easily and effectively to overcome struggled from Mathematics problems. The current staff is about 5 including CEO who was the first founder of firm C.
As per CEO, this solution is one of the most popular digital learning app in Finland which is readily available in more than 50% Finnish schools and 25 countries at the moment. However, domestic operation (in Finland) is handled by the University. Therefore, firm C was started for the sole purpose of doing international sales and had a clear vision to enter foreign markets from its inception. As a result, firm has started foreign sales in 2019 (founded year) to Qatar and currently serving 25 countries including Europe, Asia, Middle- East. The history of firm was interesting because at the start, founders did not have any idea about how education systems works in different countries so they have started from the scratch. First step of internationalization was to contact Finnish school around the world and pitch their solution to them. Afterwards, they could make
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deals with them successfully. According to CEO, one of the main driving force for fast internationalization is having trusted partner network with the expert knowledge about local education curriculum. The second step was to pitch the solution for local partners and make the deals.
Firm was not give clear answer about next target market since several user agreements were halted due to pandemic situation and they are trying to renew those agreements in the first place and then find local partners. However, CEO has given hint that they have an idea to enter in to India if everything works well accordingly. Subscription is the business model of firm C where school charge subscription from students based on number of students who use the platform. This is annual subscription which is yearly renewable. Moreover, they are now planning to introduce English language as their next product but still under development phase. Further, firm searching trusted partners to expand their business globally and renew existing user licenses.
4.4 Firm D
The next case study is a Finnish mobile game company which was founded in 2012 based in Kajaani. The firm’s main operations consist of developing best online shooter games for mobile phones. The most influential factors behind the firm was CEO wanted to develop shooter game for mobile phone which was interesting to him and the co-founder. With the academic background and professional experiences of the team, firm D was established and operated as a successful digital venture in Finland irrespective of smaller size of the company.
The main inspiration to develop shooter game was firm found niche market for shooter games for mobile phones. Moreover, they received significant applauds from the game community for prototype of the product back then. For instance, all existing firms were developed shooter games for PC or console but firm D thought to design such game for mobile phones which was unserved market at that time. As per CEO, the key reason for successful of the product was right product at the right time. As of now, there is no direct competition from big players in the market.
The faster globalization was clear vision of the firm from its inception. As a result, there were 100,000 downloads in a single day when the product launched in google play and Apple app stores in July 2012. From the successful first day itself, firm has marked special milestones during the
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past period. The firm was launched fourth game in 2014 but that was not successful as planned.
However, firm was able to make totally new version of the first game which was successful at the market. The next step is concerning to upgrade existing games to provide better experience to the users. Moreover, currently developing new multiplayer shooter games which in under prototype phase at the time of interviewed.
At beginning firm launched this game as a premium version because premium games work well at that time. However, it was not successful with the Google Play and firm follow premium model to Apple app stores only. However, firm D ended up with free to play model in order to align with the industry practices. Now all their games are freely available in all digital platforms.
4.5 Firm E
The last case of this study is a Finnish gaming venture founded in 2017 based in Tampare. The founders of the firm and the team wanted to offer something new to gaming industry but on the other hand avoid the competition from big players at that time. So, they found blue ocean strategy to place their solution which is tycoon games for mobile phones. As per CEO, the reason for success is, this games were designed based on lot of research data and personal experiences of real tycoon players. Therefore, firm E able to make an impression about the game within tycoon community which is resulted fast spreading all over the world within a shorter period.
Firm E found niche market for transport tycoon games with advanced tools (ex: ships, trains) because existing competitors does not provide similar kind of game. Therefore, firm able to retain players within the game for longer period and convert them to paying users. Although firm started 4 years ago, firm receive good comments from the players for specific features in this game. For example, this game is available in 15 languages and the users can play with advanced tools. Hence, firm believes localization works beneficial for them because players are more excited and perform better in those target markets. Currently firm E is developing three new games and specially design tycoon game for female audience. Moreover, these tycoon games are freely downloaded from iOS and Google play but revenue comes from in-app purchases and rewarded ads.
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