WHAT ADVICE WOULD YOUR GROUP GIVE TO WEN JIN, CMO OF ACE

COMPANY (ACE)?
Vision of the Company - Create a Universal Operating System.
Immediate Objective - Scaling up Revenues.
Conflict - Whether to extend the breadth (to become a universal OS for Internet of Things) or to
increase the depth (Specializing in Niches)?

BASIS UNIVERSAL OS SPECIALIZING

(ZHANG) NICHE (REN)
Synergy With Vision YES NO
Synergy With NO YES
Next Objective

Prudent Use Of Funding NO YES

Clarity In Decision NO YES
Deepening Of Moats YES YES
Customer Satisfaction PROBABLY YES
Overall Rationality NO YES
Fig. (a) – Rationality Framework

When looked at the Rationality Framework, we can see that two important factors that can brutally affect the
business is at stake, i.e., Customers and Financial Prudence. Since, the PI which will enable the company to
be a universal operating system provider is at a nascent stage it is not advisable to proceed with it. We don’t
see any problem with large scale promotions because when it comes to tech there are far cheaper alternatives
to pursue, like tech conventions where major CTOs of companies, VCs, Tech Geeks participate. The entry fee
to participate at a convention is very minimal, and commercialization can be pursued in this way coupled with
all the goodwill earned (Ref: 7th Page, Last Para). On the customer front, we are worried that a foggy path
might not be a good option for a scaling start up. The company is not sure about its product and the reviews
are not that positive too, it is not advisable to pursue the path to become Universal Operating System provider.
Now, any strategy should result in two important things: deepening of MOATS and Synergy with Vision. By
taking the CEO’s suggestion the company can take a rational decision that can result in deepened moats, stable
revenues and customer satisfaction as well. But, as discussed synergy is also important. In this case, the lack
of clarity in the PI product of ACE might result to an extent that the company might lose their customers as
well. If speculated, it is still a probability that the company might become a universal operating system
provider but it is not a certainty. In such a crucial stage of business, it is advisable to go with certainty and
deepen the existing moats than a promise of colorful future which we might never see.
There is not that much divergence from the vision, as the company continues to give promising solutions to
the niches, the integrating part and the army of developers will take care of developing applications in the
ecosystem. Therefore, there is a high chance to get back on track with the vision of becoming universal
operating system provider. By building Himalayan walls around niche sectors, even if a behemoth like
Microsoft steps inside will find it hard to scale up. On the other hand, by staying in the niche the company can
still shave away profits from the giants.
Conclusion: Pursue the strategy of CEO Ren and alongside work on the negative feedback on ACE’s PI. After
resolving do iterative testing and finally promote it in a tech convention. This will promise sustainable growth.