ARctic Innovision Case Study: Problem Analysis and Strategic Decisions

The case study focuses on ARctic Innovision (ARI), a successful augmented reality (AR) company in Canada, facing challenges in international expansion. ARI, with expertise in AR device development, seeks to expand into Brazil but faces legal and strategic complexities. The analysis highlights the company's reluctance to risk legal complications in exporting virtual reality, the need to generate international demand, and the cultural differences between Canada and Brazil. The case explores the potential of a joint venture in Brazil, considering policy implications, competitive advantages, and the need for interactive software applications. The study emphasizes the importance of addressing these issues to achieve organizational success and establish a strong position in the diversified field of AR.

Running Head: Problem 0
Human Resource Management

Problem Analysis
The case has been contributing to the insight of augmented reality, which has been a
major trend in the modern world. Arctic Innovision (ARI) is a profitable and successful
augmented reality organization in Canada. It has diversified into two big cities of Canada i.e.
Vancouver and Toronto and has highly competent personnel having expertise in research &
development, programming, production, consulting, and business management of augmented
reality devices. The problem, which has been identified as the organization has been reluctant
to risk legal complications by exporting virtual reality to different countries. It is quite
evident that augmented reality software might not be effective in the country, which they are
willing to expand and commonly have low adoption rates in the digital world. It can be
associated with the bureaucracy and high extent of regulations that prevent to train artificial
intelligence algorithms (Harley, Lajoie, Tressel & Jarrell, 2018).
It is stated that major concentration should be based on the human-capital interaction
of those solution to assist with adoption. Virtual reality is mostly utilized for gaming as it can
be used for work-related applications and replace real-world objects. This situation is
emerged, as they need to generate a strong appetite for augmented reality internationally. It is
very risky and complex due to the reason that it is slightly difficult to expand the business in
another country as it projects too much confusion, which leads in digital data as well as
privacy invasions and physical security risks (Scholz & Smith, 2016).
There are organizational strategic consequences in making a decision regarding
Meganational approach is that several people become familiar with the AR entertainment
applications such as mobile app Pokémon Go and Snapchat filters and generates connection
among machines and humans. It is quite evident that Arctic Innovision recently delivers
products to Canadian clients and need to expand into another country i.e. Brazil because there
is a diversified market for a ‘click to buy’ utilization of AR and distance learning in the near
future. They are following a Joint venture with Brazil, which can create the client’s real
world into digital content. It is seemed to find cultural differences in Brazil as it is seen that
their people are more open-minded when it comes to embracing new technologies. As
compared to Canada, their people are more confused regarding virtual items in meeting
digital consideration (Ocampo & Palaoag, 2019).

It is stated that the policy implications of Canada are generating support in
maintaining augmented reality business and generating value in the future. As compared to
Brazil, policy initiatives are taking credibility to maintain new customers and encourage the
Brazilian AR market. The joint venture is effective for ARI, which assists in generating
competitive advantage and profitability. However, it is required to diversify the business in
Brazil as it assists in maintaining growth and profitability by interactive software applications
at an effective price. By implementing these changes will offer potential opportunities to
expand the business and attain growth. It is stated that these issues are significant to generate
success in the organization so that they can generate a position in the new diversified field
(Block & Walter, 2017).

References
Block, J. H., & Walter, S. G. (2017). Hofstede’s cultural dimensions and modes of entry into
entrepreneurship. In Exploring the Entrepreneurial Society, 21(7), 36-57
Harley, J. M., Lajoie, S. P., Tressel, T., & Jarrell, A. (2018). Fostering positive emotions and
history knowledge with location-based augmented reality and tour-guide
prompts. Learning and Instruction, 26(2), 11-23
Ocampo, A. J., & Palaoag, T. (2019). Improving tourism experience in open data
environment with mobile augmented reality: needs and challenges. In IOP
Conference Series: Materials Science and Engineering, 482(1), 222-342
Scholz, J., & Smith, A. N. (2016). Augmented reality: Designing immersive experiences that
maximize consumer engagement. Business Horizons, 59(2), 149-161