Why going global?

Global perspective is a matter of survival for business. If we are going to focus only on domestic market, it will be small and no prospect of expanding our business volume. Malaysia population is only around 25 million people and market for those who afford digital entertainment will not be huge enough to generate growth for times to come. Global expansion provides future potential growth for the company because the international market will be very huge with coverage from Asia Pacific, North America and Europe. That 3-mention market is huge because of high population percentage of high and medium income level consumers who has more money to spend on entertainment. China and India both also offer potential huge market for consumer electronics and the market is rewarding if we can compete with locals on the pricing.

Cost saving is an evidence when are moving ahead to global center stage. A new and emerging market has been growing very fast especially in China and India. Production of hardware or gaming controllers needs to source material vendors and sub-contract manufacturer. Medium to high end technology’s companies has been moving to China and India because low cost of labor, material and also a lot of benefits provide by the local government to encourage foreign direct investment. Cost saving in term of material is essential to compete with others in term of pricing and access to market. More over a lot of sub-contract electronic manufacturer and EMS has been operating in these 2 huge markets, such as FoxConn, Jabil and Flextronics.

Creative talents are an important asset when we want to compete in multimedia games industry. Demand for games changes very fast just like a fashion and it is important to make our product interesting and create retention of consumer, as they are moving through stages of their life. Moving forward globally enable us to recruit a lot of talents from all over the world especially those from emerging India where cost of human capital is still low and high adoption of information technology knowledge there. Relies solely on local market to tap the talent can be risky because it cannot guarantee can provide us talent on time, on scale and skills that we would dream of and at best price. Big industrialized countries like United States also need foreign talent in order to sustain and grow its modern economy in the long term.

Moving to global also makes us understand the market and consumer needs better. We cannot just simply design and come out with our product that only fits local taste if the games are exported to other countries as well. By moving forward and deal with global partners, we can understand their market preferences, characteristics and needs so we can tailor our products to suit them. Providing total satisfaction to customer can help to retain them and further expand our market penetrability and income.