Takadu Case Study Analysis
Pros and Cons
This could make the system even more appealing and help the company to grow via word of mouth. On the other hand, with competitors entering the market; it is the right time to reduce the emphasis on R&D and divert the focustowards boosting sales and customer satisfaction. But this is a costly option.
Alternative 2: Investment in Marketing
One alternative is to make its budget allocated to sales at the initial stage. In this way, the company would be able to penetrate the industry. Market penetration is important for companies who are struggling to constructtheir brand in the market. Since after 2014 they might face some financial issues so they must try their level best to work on getting market share and increasing revenue for the next three years.
Pros and Cons
This will help TaKadu to construct brand awareness among the current and potential customers. Being a new company, it was ready to install its software in the business anywhere around the globe. To make its investment in sales; the company can explore the Australian market. In addition to that, the company has not been able to make profits to a large extent, thus; the company should go for making more investment in sales to capture the market and to construct brand equity.
Recommendation
The analysis, pros and cons of each alternative indicate that the company should go for making a large investment in sales, in order to grab the market,because the company is very small and needs more customers to expand its business. As far as the pricing is concerned; the company sells SAAS, which provides many benefits to the customers.
Implementation Plan
To do that, the company needs to target the markets all around the globe at the same time. For doing aforementioned, the company needs to hire more staff, to make its sales more efficient all around the world. As mentioned in the case, the company is considering to submit a bid to its Australian supplier; it would be an appropriate step to tap the Australian market first and then moving towards other markets, worldwide. Furthermore, to make its sales budgeting successful; the company needs to spend aggressively on its sales and marketing. To make its sales strategy better implemented; the company needs to allocate more than 70% of its budget for sales and marketing and 30% in R&D.......................................
Related Case Solutions & Analyses:
Retail Relay (B)
Why CRM Fails-and How to Fix It
Note on Biotech Business Development
Scientific-Atlanta Inc.
NESWC (A)
House, Hearth and Home: Managing Leadership Change
Iris Running Crane: December 2009
Ben & Jerry’s Homemade Ice Cream Inc.: A Period of Transition
Roche’s Acquisition of Genentech
TESLA MOTORS
