Rosetta Stone Inc
Rosetta Stone Inc
1. Rosetta Stone has been one of the leading language learning companies and software’s on the market. Many competitors have not been able to enter into markets due to the strategic planning it takes to decide whether it is feasible and profitable as a company to grow stronger. Rosetta stone wants to enter into the European market to expand and grow as a globalization company. To facilitate growth, the company has already protected its trade dress because its keeps it distinctively different from the competitors. Rosetta Stone has Totale, which makes it easier for entrance into the market. Totale has the technology and software to make consumer sales increase.
The European market is one of the biggest markets for business due to the location. By doing so, operating expenses will increase making the net income decrease but depending on the market demand, which in the UK shouldn’t be a problem due to business standards of location. By having the Totale software, it would make it easier for businesses to learn due to the integrated course led courses with games, interacted speakers and live customer support.
For the expense or accessing it online for companies would make it easier while technology is growing rapidly due to research and development such as an expense acquired in process R&D. Rosetta Stones return on equity is low so a bigger market with more potential shareholders could be good to make the return on equity increase. By entering into Europe, operating expenses will increase but as that increases it means that the revenue will increase with the demand for businesses to comply with the software to build nationally and learn more languages to up their credibility and resume for potential jobs or opportunities that may arise.
2. Rosetta Stone has had sales increase around 19% from 2008 meaning that the activity has increased due to the demand of learning a second or even a third language. Many people are trying to embrace themselves with different cultures. By knowing how effective a company is, activity ratios measures the efficiency of the company using its resources or assets. Accounts receivable turnover shows the company how quickly collects what is owed to it. To profit, must manage inventory because it is money that does not earn a return. While net sales are increasing, inventory increases meaning that the inventory turnover ratio will decrease but meaning that inventory is harder to keep track due to an excess amount of sales.
Rosetta Stone has a low inventory turnover ratio but the asset turnover ratio is high meaning that generating revenue with assets. Due to the excess amount of cash, we see that more cash is in hand than the past 3 years. Rosetta Stone has pushed to be the leader in technology and innovation to have such a unique change in market shares. The total asset turnover measure the return on each dollar invested in assets which shows how much revenue is generated for each dollar invested. With as many shareholders as, to know how well a company is ran, look into the activity ratios to see how effective a company really is with their net sales due to the assets that help generate profitability.
3. Rosetta Stones vision is to change the way people learn language. It blended language learning with technology when globalization connected more and more individual and institutions together. As a company, RST has developed most of their own technology to assist learner’s transition from listening comprehension to speaking. Technology is the key in what RST has to offer as a vision and values for future. They would not be where the company was today with out technology. Technology is a staple point of where the company is at currently. As people develop day-by-day, new features and technology are being integrated into the view of the future, which is to have a speech recognition technology supported by speech recognition software of every language possible.
With the company where it is at now, to globalize the technology and making public would make revenue stream increase. Technology and the advancement of it, makes it easier for RST to evaluate opportunities such as mobile technology. With how this generation is going, mobile devices have changed the world, some may say better, some may say for the worse. As a company, analytical assessments of issues referring technology have always been an issue with RST. No matter what, operating expenses always seen to be high when your putting out such output in the market of what many language software’s don’t have what RST stone has. RST focused on minimizing costs and achieving efficiency as it meets its production goals and plus some more.
Rosetta Stone had great research and development. Within the next few years, I believe Rosette Stone will reach out to markets and enter them with the Totale software that makes it easy for companies and humans to learn a language in the most efficient possible way. Efficiency is the core asset that the company has to embrace and keep as a leader to other competitors that make them better. They need to keep the technology development and research coming to make innovations for themselves different from others through technology, which makes the business run. We have seen an 80% increase in computer use in past 5 years.
4. Rosetta Stone has many advantages and disadvantages when it comes to innovation and technology to other competitors. They have the innovation of technology to be the leading market segment in language learning software. The advantages of RST is that they have Totale which will help the company go global which is a technology software subpar of any others on the market. Due to the demand of computers in use, RST makes it easy, efficient, and cheap to access the software for the site. Another advantage is that it is meant for basic learners. Their business model is to think of when we were kids learning with pictures, that’s how they market it by speech recognition, visuals, and a easy efficient way to catch the market audience.
While technology advances, RST researches and develops new ways to be efficient and profitable. Some disadvantages is that research and development takes time so the view of the future might be the same and values but need to overcome obstacles that could be in your way such as competitors in the markets. Technology has its ups and downs, there will always be some sort of technical issue that happens and that’s always a set back and just more of an expense to the company.
Rosetta stones approach to learning on socialization online makes it easier to advertise due to streaming on the Internet. RST is growing through their own innovation but additional financial resources can entertain mergers and acquisitions down the line would help the company as a whole. Rosetta Stones mission was to change the way people learn languages by interacting more and technology has made it possible for RST to be so efficient and profitable as of today.
University/College: University of Arkansas System
Type of paper: Thesis/Dissertation Chapter
Date: 2 January 2017
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