Domestic security companies are competing for overseas business expansion, and their similar but different strategies in doing so are grabbing attention. Some are using the standard strategy, aiming for the globally advanced market in the US, while others are going for the niche markets in Japan, the Middle East, and Southeast Asia, where domestic businesses are more welcome.
First, companies aiming for the American market believe entering the competitive, leading market is the shortcut for entering all global markets at once. AhnLab and Fasoo.com are examples.
AhnLab established an office in the US last September, entering the American market in a typical way. It is suggesting AhnLab’s TrusWatcher to US public institutions and major enterprises.
However, it will take time to harvest the fruits of their work. AhnLab’s relatively low performance this year has to do with investing large amounts of time and money into local marketing, securing distribution channels and business processes.
AhnLab representative Kim Hong-sun showed hope in saying, “AhnLab’s APT response solution TrusWatcher received good scores on the performance evaluation test in the US. This test score will become an objective standard of AhnLab’s technology entering the American market, and can be advantageous for entering US public institutions.”
Fasoo.com established its office in the US earlier than AhnLab, last February. Fasoo.com representative Cho Kyu-gon said, “Local US security companies are rather large enterprises, and to be honest, they do have a conservative look on the solution from a foreign country, especially Korea which is a software wasteland,” but added, “We decided to target such a market first, because once we overcome that reputation and our technology becomes recognized, it’ll open doors to other global markets.”
On the other hand, companies starting with Japan then moving on to the Middle East and Southeast Asia are making good businesses.
Wins Technet is an example. It provides intrusion prevention systems to Japan, pulling up its entire sales. Wins Technet made growth in both sales and business profits in Q3, despite the difficulties in the domestic market. This is largely due to sales in Japan.
MirageWorks, which provides network dividing solutions, is growing into a strong business after targeting niche markets, including Japan, and increasing its sales profits to 40%.