SySDSoft; A Local Player in the Global Market
Basma Bishay:
Hend Mostafa:
December 2016
Since its launch in 2002, SySDSoft was able to attract customers, build a strong brand name, and compete internationally. Although the company faced many challenges internally and externally, it was able to sustain a strong position in the wireless technology market and was able to compete with large well established international competitors. In 2010, many changes occurred in the wireless technology market. There was a large wave of mergers and acquisitions. Many small companies were bought by large players in the market, leaving SySDSoft as one of the very few small companies operating in the market. SySDSoft is now surrounded by giant billion dollar companies. Although the company has highly skilled engineers and successful products, it wasn’t sure if it could compete against the world's top companies. The question is, Should they continue operating in the market or should they exit the market? If they decide to leave the market, which exit strategy should they use? Should they consider initial public offering (IPO) to raise more capital and compete with existing giants? Should they consider merging with large players in the market? Is acquisition an option knowing that being acquired would provide a fast return for their investment but without a guarantee for the retention of the management team? If they decided to exit the market, when is the right time to do so?
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