Essay Prompt:

1. Using module theory and specific examples from the case provided identify and critically analyze the strategic issues confronting the 'IT'S LEARNING' as it expands beyond its home country (1000 words)
2. Using appropriate module frameworks and specific examples from the case critically analyze the advantages and disadvantages of the Norway as the home base for a global developer of Digital Learning Platforms. (1000 words)

3. Using module theory and examples from the case, demonstrate how 'IT's LEARNING' has used its resources and competences to scale up and develop competitive advantage in the foreign markets. Explain briefly how module theory can help you generate fresh options for the company's future resource development.( 1000 words)

ITs Learning Operations

ITs Learning is a leading provider of cloud-centered Learning Management System (LMS) across the globe. The company was founded in 1998 at Bergen University College in Norway by a group of students who sought to identify why digital tools were rarely used in their school. Since these students were computer engineers, they resolved to change that trend through developing a learning management system for their masters project (Its Learning, n.d.). In the initial stages of development, the system was a single platform through which teachers could share their academic files and resources while students could complete and deliver their assignments. As the system became an instant hit, ITs Learning was founded with a vision of promoting effective use of technology to significantly enhance the field of education. Through its cloud-based LMS, ITs Learning has developed to become a digital learning platform that supports teachers and students to effectively manage the learning process, develop multimedia resources, and share academic information and work online (EQT AB, 2017).

Strategic Issues in ITs Learning International Operations

Since its formation, ITs Learning has continued to grow given its vision of promoting the adoption of technology in the world of education. The company has engaged in several initiatives to expand its operations beyond its home country. In most cases, ITs Learning markets in digital learning platforms and solutions through resellers, which has helped in expanding operations in both Norway and other parts of the world, particularly Europe (Bloomberg, n.d.). Some of the major countries where ITs Learning currently operates in include France, the Netherlands, Finland, Sweden, Denmark, and the United Kingdom. The expanded operations beyond the companys home country in Norway is attributable to effective strategies for global operations.

However, ITs Learning has experienced some strategic issues at its expands to other countries beyond its home country. According to Dewhurst, Harris & Heywood (2012), operating in the global environment environment through expansion generates strategic challenges. ITs Learnings decision to expand into other countries was fueled by the global opportunity to promote the adoption of digital tools in the education field across the world. In this regard, the company identified global expansion as a crucial element towards improving overall growth and enhancing competitive advantage/market share. The global environment provides numerous opportunities for business growth and profitability because of the inter-connected nature of the modern business environment. As a technological company, recent advancements provided a suitable opportunity for ITs Learning to expand operations to other countries, particularly in Europe. The strategic issues experienced by the company in its international expansion initiatives include

Competition in the Market

One of the major strategic issues that faces ITs Learning as its expands beyond its home country is competition in the market. The learning management system comprises of over 60 different providers and represents a market estimated to be $860 million. In Europe and the United States where the firm seeks to expand its operations is estimated to be approximately $173 million. Competition in the market is a major strategic issue for this company because the largest companies providing LMS services account for nearly 50% of the market. The other market segment is comprised of smaller LMS product vendors, enterprise resource planning vendors, training outsourcing firms, and consulting firms.

Leh (2016) states that the LMS market is increasingly competitive because educational professionals, vendors, and practitioners continue to look for and develop different measures to promote life-long learning and enhance the experiences and outcomes of learners. Large and small companies continue to compete for the same market segment because modern learners want to consumer just-in-time resources. Additionally, these learners want to leverage collective knowledge in a reliable, inexpensive, and instant manner (Leh, 2016). Consequently, various kinds of learning technology providers...
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According to Matthews (2016), the international market for learning management systems continues to be highly competitive and dynamic because of increased investments, acquisitions, and mergers by LMS providers. These trend contributes to intense competition in this market, which generates a significant strategic issue for ITs Learning as it expands beyond its home country. The significance of this issue is attributable to that fact that there are several local and foreign developers of LMS across the globe including in Norway. The firm faces stiff competition from two major rivals i.e. BLACKBOARD and CLASS FRONTIER as well as LMS systems customized by every learning institution.
Expansion Strategy

The second major strategic issue facing ITs Learning is identifying a suitable expansion strategy for market entry. For its local growth in Norway, this company utilized a strategy of providing its products to higher learning institutions. When expanding to the Netherlands in 2007, the firm had to change its strategy because of the specific conditions in the market. For instance, ITs Learning had to change its strategy when expanding to France because it had to deal with cultural differences. One of the measures that the company has utilized as part of its expansion strategy is product diversification. Suttle (n.d.), states that product expansion and diversification are some of the growth strategies employed by companies when expanding to new markets. Product expansion involves adding new features or produce line to boost sales and profits whereas product diversification entails selling new products to new markets. ITs Learning seems to rely on product expansion as the premise for its expansion into new markets or beyond its home country. For example, in its expansion to the UK, ITs Learning included filters in its LMS to sort out improper language. The significance of identifying a suitable expansion strategy is evident in the fact that firm recognizes that expanding into a new market requires a lot of planning because of differences in languages, cultures, and rules and regulations across countries.

Cultural Differences

The third strategic issue facing ITs Learning as it expands beyond its home country is cultural differences because every country has different languages and cultures, which affects how learning systems are established and utilized. Culture is an important aspect of conducting trade across international markets and plays an important role for international marketing (Ahmed, Ullah & Allam, 2014). The significance of cultural differences as a major strategic issue for ITs Learning is attributable to the fact that every country has its own values, beliefs, traditions, and customs. In the learning management system market, cultural differences have negative effects on how students particiate in digital learning platforms or online courses (Liu et al., 2010). Cultural factors have significant effects on how learning management systems are developed and utilized within a country. According to Guang & Trotter (2012), cultural factors affect the communication and potential for success for competition.

For instance, when the learning management system was initially developed it incorporated features that reflected the cultural differences in international markets like the United Kingdom. In the United Kingdom, the system included features that would identify and delete improper words through an e-safety program. As a true innovator, ITs Learning considers language and cultural factors when developing its cloud-based learning management system and its various features. The consideration of cultural differences is an important element to ensure that the system reflects the values, beliefs, traditions, and customs of the specific country or market. Cultural differences are critical strategic issues because of how culture affects businesses in various ways including language problems and pricing difficulties (Deari, Kimmel & Lopez, n.d.).

Norways Suitability as a Home of a Global Digital Learning Platform

ITs Learning was founded and is currently headquartered in Norway, which has some advantages and disadvantages relating to its suitability as a home for a global development of digital learning platforms. At the time when ITs Learnings cloud-based LMS was developed, the education system in Norway had not adopted technology despite the rapid technological advancements. Most of the learning systems utilized in the country at that time were conventional systems that did not meet the evolving needs of educators and learners fully. Since ITs Learning was founded and has expanded to other countries across the globe, Norway acts as the home of a global developer of digital learning platforms. However, the suitability of this country to support such a company has generated some concerns on the basis of its advantages and disadvantages.

Advantages of Norway

One of the major advantages of Norway as home for a global developer of digital learning platforms is the huge innovation market within…