Business Analysis: Compsis

Businesses often come to a crossroads and have to make strategic choices as to what is the best for the organization. Compsis is a company that created a software that facilitates the automation of toll roads. Additionally, Compsis is located and primarily services the Brazilian market. Compsis had developed a sophisticated Electronic Toll Audit system named SICAT which automated the toll taking process and made it an electronic toll collection process (ETC) (Lehrich, Paredes, & Ravikumar, 2007, p. 3). This paper intends to analyze the choices, the motivation behind these alternative choices, how the financial status of the company has an impact on these decisions and the markets that Compsis is considering. Finally, there will be a recommendation
The two companies had worked on a toll project in Australia and this pairing had proved prosperous. This collaboration was rewarding primarily, because Philips had local contacts and Compsis handled the software which is their major strength (Lehrich, Paredes, & Ravikumar, 2007, p. 5). However, a project in India did not prove to be financially successful. Compsis was selected to program a large toll road in New Delhi, India, accordingly, this project facilitated a technological upgrade of SICAT (Lehrich, Paredes, & Ravikumar, 2007, p. 6). While the software worked well and helped cement the software prowess of the engineers at Compsis. Overall the project was not a financial success due to cost overruns. Compsis did their part, however, the local company that Compsis contracted to install and test SICAT, proved to be inordinate, which necessitated multiple reinstalls and proved to be expensive to the firm (Lehrich, Paredes, & Ravikumar, 2007, p. 6)
Therefore, Compsis looked towards markets available, such as those in Latin America, (which necessitated a less expensive version of Sicat that wasn’t yet available) Europe and the United States. Compsis knew the barriers to the United States might prove to be problematic since they had no contacts or previous experience, moreover, competition was fierce for any neophyte in the mature market, since there were several providers that were already well experienced and reputable (Lehrich, Paredes, & Ravikumar, 2007, p. 7). Furthermore, the process was very regulated and somewhat complicated, with some bids taken by the government and others by the individual contractors, this made it so difficult that the firm had yet to untangle the bureaucracy.
Recommendation, while Compsis has a great product in SICAT and has some potential for markets in the United States and Europe, if the situation is dire, then I suggest that Compsis should work diligently on a less expensive version of the software and work on installations in Latin American countries such as Chile and Argentina. Furthermore, later they can send some emissaries to Europe and the United States to investigate a possible expansion into those wealthier