International expansion plan of Softfinança to the United States of America

Abstract

The following document answers where SoftFinança (SF), a Portuguese software development company, should expand its product, “SoftPayments”. With Covid-19 increasing adoption of digital financing, many may assume that most global markets could provide the company with immense opportunities. However, to truly identify a suitable market, the report conducts an internal and market assessment to understand the firm’s current situation and potential. With this information, a joint venture expansion into Luxemburg was identified as having the highest potential for SF, while a marketing analysis found that targeting affluent families would lead to the highest returns. The individual work project aims first to comprehend the literature behind the “International Market Selection”, taking into considerations the different methods followed by companies. Then, analyzing in depth the United States’ market allows to decide if it would be a good fit for SoftFinança’s internationalization. The country is firstly examined through a general point of view while going specifically afterward with considerations about possible contacts and organizations to deal with during the expansion and a description of both the competition and the company and the market’s sales potential. Finally, recommendations for the best entry mode are provided.