SaleSoft Inc is faced with making a tough, time constrained and strategic choice to either continue with it’s PROCEED software development or redirect the efforts of the entire company’s workforce to deliver the Trojan Horse (TH) product in time for the sales automation conference. The decision taken will have to be absolutely exclusive and is expected to have a critical impact on the company’s future and indeed it’s very viability.
I would recommend the company to
1. Fully redirect all of its efforts to get Trojan Horse (TH) product to market quickly so that they can showcase it at the SA conference. This would be necessitated by the financial situation of Salesoft Inc as analyzed in this document. They can concentrate on getting the PROCEED product out after demonstrating TJ.
2. Adopt a customer oriented value-based pricing for Salesoft and price it at a higher entry point of $1000 for the computer hardware market.
3. Clearly choose the computer hardware industry as their target market segments and spend minimal time and effort in getting involved with selling to financial sector industries.
4. Realign their internal sales organization to cater to the needs of the TH customer base more effectively and strongly consider the possibility of offshoring some of the software development to lower cost locales like India and China to reduce the cash burn-rate.
CASE ANALYSIS
It is evident from the case that Salesoft Inc has very limited funds for operation and has to show positive developments to venture capitalists before they can raise further funds. |
CASE FACTS:
The main objective of SaleSoft (SS) is of becoming a leader in the high end of the Sales Automation (SA) software industry for which they introduced PROCEED which had very little competition and high demand. Now, SS needs to decide whether or not to introduce a Trojan Horse (TH) product which could potentially distract SS from its primary objective.