In my project work I will investigate how the mobile application can be launched within foreign markets. Also, I will explore effective methods and ways of its development and diffusion. The main aim of this project work is to explore all possible barriers, which can occur during a launching campaign, and how to eliminate or avoid such threats. My project work will be built on the base of Hungarian application Development Company called GPS City Guide Kft.

Smartphones with lightning speed are spreading all over the world. Such markets as Apple App Store showed that mobile applications can be one of the most rapidly growing markets nowadays (Erman et al., 2011). It produces huge revenues and brings wide possibilities to every mobile application producer. Also, a market segment could be enlarged to whatever sizes since it is easy to reach customers in any part of the world just by sharing application through the World Wide Web – the Internet. But, on the other hand, the enormous competition and great price pressure on the producers made this market very subscriber-focused and with hostile environment. All the time each producer should keep vigilant watch over the surrounding atmosphere and search as well as invest into cutting edge technologies. 

GPS City Guide Kft is a small company in the application software development sector with huge potentials. Its main product is a Pocket Guide, which is an application for travelers. It guides tourists through the cities by cues, so that they don’t have to fiddle with their phones. Users can create photos, videos and audio notes, and then, the app creates an impressive 3D video that they can share with other people. This kind of software can be downloaded on the most popular smartphones, such as Nokia, iPhone, HTC, and others. The application needs to be installed first, and then, it uses only a GPS device of the mobile phone. Hence, it is extremely practical for international travelers because the application will not use cell network (roaming) or the internet. It is possible to find almost all big cities of Europe in the Pocket Guide database and great variety of other places worldwide. At present GPS City Guide is planning to develop its network by adding more cities including the Ukrainian capital, Kiev.

GPS City Guide Kft for Ukraine

Entering the Ukrainian market will be very challenging for the European company because of cultural and elaboration differences, language issues, and law mismatches.

The purpose of the project work is to research all steps of launching a new product over the new geographical markets in order to find out all sides of the mobile application industry and provide concrete recommendations for GPS City Guide Kft.

The research statement of my project work is: Launching Pocket Guide in the Ukrainian market will generate profit streams and revenues and will evaluate methods of promotion and diffusion of the GPS City Guide’s products.

The subject of my work is economic relations in the field of the mobile products and acquisition of the new geographic markets.

The business problem of my project is not only launching the Pocket Guide in Kiev but also researching the ways to promote and diffuse the application by establishing relationships with the Ukrainian partners, such as the state government, restaurants, cafes, tourist information centers, travel agencies, and ultimate consumers.

The choice of Ukraine is a strategic decision as far as Ukraine is one of the biggest countries in Europe with population other 45 million people (State Statistics Service of Ukraine, 2012), and the average attendance of the country is 21.2 million tourists per year (United Nations World Tourism Organization, 2012). In 2011, $5.8 million receipts were received from the tourism. Furthermore, from June till July 2012, Ukraine will held European football championship – UEFA EURO 2012. It is worth noting that the Ministry of Culture and Tourism of Ukraine is expected to procure 1.2 million tourists additional. It is a great opportunity for GPS City Guide Kft to appear in the Ukrainian market in beneficial time. Ukraine as touristic country has some obvious problems, which can be easily solved with help of Pocket Guide.

Firstly, Ukraine is a post-soviet country with low level of the European integration and bad developed tourist infrastructure, thus, tourists who are without any help, unfamiliar with Ukrainian culture and language could be misled and got lost. Secondly, there is deficiency of professional English speaking tour guides who can present the country to the foreign tourists, and very expensive services could be found, as well. Visitors of the East-European country are not aware of places to spend the leisure time and have some meal. There is a whole heap of similar problems that can occur when foreigners will come to visit UEFA EURO 2012. This kind of problems can be solved by the Pocket Guide application, having used a relatively small amount of money. One tour cost approximately 3-12 EUR/license; hence, it is procurable for smartphone holders and much cheaper than usual tour guide services. It is easy to download software from popular applications stores (Android Market, App Store). Pocket Guide has outsized capabilities, which can be extremely helpful, but has serious disadvantage as well.

The purpose of the study is to launch a new product for Kiev and enhance frameworks, which can help to increase sales of the company. Besides, it is vital to scrutinize the importance of entering the Ukrainian market by defining benefits and disadvantages of the touristic industry in conjunction with the relative sectors. The essential framework of my project is to analyze GPS City Guide Kft and its effectiveness, while developing a competitive product and launching it to new markets.

GPS City Guide Kft is a small company with only 7 workers. The legal address is 4026 Debrecen, Bemtér 14. fszt. 4. Starting its business in 2008 till now, the company has two more offices: the European office is situated in Budapest 12 Frankel Leó u. and Silicon Valley office – 541 Jefferson Ave., Suite 100, Redwood City, CA 94063. The mobile applications are sold via the Internet and Application Markets, such as Play Market (Android) and App Store (Apple); hence, everyone worldwide who would like to buy Pocket Guide can do it easily.