Barco Case Analysis

You might also like

Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 1

Assignment-Sale soft Inc.

Q1. Do you plan to continue with PROCEED or will you introduce the TH product? 

1. Sales Soft’s original objective was to become market leader in the upper-end segment of
comprehensive CSAS software(PROCEED). Deviating from this objective mid-way and selling
TH might relieve PROCEED from it’s immediate cash worries. However, it will force Sales Soft
to permanently relinquish it’s current promising position in the market
2. TH if introduced will be faced with tough competition in future (tech-giants supposedly
trying to capture this market).  On contrary, selling PROCEED in a market with less crowd of
CSAS vendors (mostly start-ups) will be better. 
3. Besides, for TH, the time investment(>=3months), development cost ($200,000), initial
marketing cost($500,000 over 6-8months) is quite high. For Proceed, 3modules are
developed; the other 5-modules would cost another $1,000,000 which is lower than the
investment requirement for TH. 
4. Furthermore, Mr.Greg knows from his experience about the value of an integrated-
solution(sales-marketing-services) rather than a focussed one(only sales in case of TH). He
also has a similar experience of successfully selling revolutionary MRP packages. This
experience will be handy while strategizing for Proceed, which is also a revolutionary
product.
And also, industry growth of ~40% and considering that already lot of investment has been made in
Proceed’s 3-modules, SalesSoft should continue with PROCEED.

You might also like