A study of entrance to the Chinese cloud computing market for AppsCo

Abstract

This thesis is a result of a cooperation with AppsCo. AppsCo is a cloud computing provider. The company host and provide the infrastructure and technology required to be able to offer and access the cloud service. The aim of this report has been to map out the cloud computing market in China, find out if there is a market for their solutions and if AppsCo should enter China. The thesis has analysed the cloud computing industry in China and its most important players. From the competitor analysis it becomes clear that there are no competitors that offers all the same solutions as AppsCo. However, there are several national and international competitors such as Amazon AWS, Microsoft Azure and Aliyun that offer similar solutions as Appsco. Through the internal scan of AppsCo, it becomes clear that their financial resources are limited, further development of the solutions are required and key management people do not have the capacity to be present in the market. This will effect the recommendation for a suitable entry strategy. It also becomes clear in the thesis that AppsCo furfils all the criterias of a born global. The discussion about AppsCo being a born global is based on the in-depth internal analysis conducted. Secondary research together with interviews based on the Delphi method, has been conducted in order to gain a deeper understanding of the cloud computing market in China. The findings indicate that there is enthusiasm among the customers for the solutions that AppsCo provides. The results from secondary and primary research made the foundation for the evaluation of two entry strategies for AppsCo. Based on the internal and external analysis combined with more in depth secondary research and Delphi interviews, the recommendation for AppsCo is to develop their solutions and strengthen their finance, before entering the Chinese market. When this is done the most suitable entry strategy for Appsco is through a WOFE.