ALTools Case Study: How ESTsoft Lays Golden Eggs

ALTools is a suite of utility software offered by ESTsoft, a Korean software company. ALTools includes eight programs: ALZip (compression and archiving utility), ALSee (image viewer and editor), ALFTP (FTP client and server), ALSong (music player with lyrics), ALShow (media player), ALToolbar (toolbar for Internet Explorer), ALPass (password manager for websites) and ALYac (antivirus). As of 2010, according to KoreanClick market research, over 20 million people were using ALTools in Korea and many of the ALTools programs were ranked first in their respective product categories.ALZip, the first ALTools application, was initially created for internal use, for an employee at the ESTsoft company who did not know how to use an English file archiver program. But after it generated significant public interest, ESTsoft decided to expand the “AL” series product line, releasing ALFTP in July 2000, ALSee in August 2000, ALPass in October 2002, ALShow in July 2004, ALSong in November 2004, ALToolbar in May 2007, and ALYac in December 2007. To manage the expansion of its product line, the company packaged them into one software suite, named ALTools in 2002 and developed an additional program that could assist users in keeping the AL series software titles up to date. It also commercialized ALTools in 2002, adding banner ads in ALTools products and selling software licenses to public institutions and private companies. However, they offered ALTools for free to individual users.ESTsoft is now looking for new business opportunities in the global market for ALTools. In February 2010, ESTsoft established ESTsoft, Inc. in the United States and entered the U.S. market directly. This is its second overseas branch, following ESTsoft Japan (September 2007). Do you think ALTools will be able to continue its success in other countries, outside of Korea? What challenges might it face?