VERMEER TECHNOLOGIES: A Company Is Born Case Solution
QUESTION 1
What differential knowledge did Charles Ferguson have toward the end of 1993?
At the end of 1993, Charles Ferguson faced a number of problems with respect to the existing offerings; the services designed were based on the centralized design and used propriety technology. Since the services were based on centralized design and used propriety technology, the overall development cost of the services has increased due to which they are perceived expensive by the users as well as these services are also incompatible with the other services, which enhances the overall complexities of the users. Thus, this has limited the overall the overall subscribers-customer base of the company. In addition to this, the customers are also unable to link their internal database with the software due to technological complexities and incompatibilities.
Moreover, the customers are liable to pay high subscription fees for the services, as well as Charles also identified that the companies are unable to develop their own customized software as well as online services due to lack of technical competence.Furthermore, the development of these services and software is associated with a number of costs, which includes cost of development as well as other operational costs.
By looking at the above problems, Charles thought that he should develop a company which could facilitate the customers with the solution to these problems with the online services by providing its customers with the standardized, shrink wrapped, inexpensive and easy-to-use software packages which would allow anybody to develop and operate the online service without using a complicated programming language. In addition to this, the software developed by him would also allow the customers to develop these services based on local and real time use of the hardware resources, data, and applications.
Thus, Charles sought a massive opportunity in this market as he would be able to enjoy the first mover benefits in the entire industry by tapping into the market. In addition to this, he also thought that he would be able to attract a massive number of customers by providing this innovative product, which could be customized according to the varying needs of the customers. Thus, the customers would be readily attracted towards the product as it would best satisfy their needs and requirements with respect to the product and services. In addition to this, the other reason that the customers would be attracted readily towards the product, in the view of Charles, is that the problems associated with the existing services would be resolved efficiently and effectively by using the new software and services.
QUESTION 2
How do Ferguson and his partner redefine the initial idea?
Ferguson and his partner initiated the idea of designing a company which could provide the software and services proposed by Ferguson. Thus, they redefined their idea as they sought that the servers and browsers already exist as the World Wide Web on the internet. In addition to this, they also sought that many of the existing services are not linked with internet as well as the customers in the entire industry are not aware of the benefits associated with the internet. Therefore, they decided to focus on the software which could offer a visual and easy-to-use development tool for creating online services.
As a result, they redefined their initial idea accordingly as well as they also decided to make a company rather than providing software and services through free lancing. Thus, in order to develop a company, they started hiring a team of expert technical professionals who would assist them in making the proposed software efficiently and effectively. Both partners established a highly strict recruitment process under which the candidates are tested thoroughly with respect to their technical expertise as well as their creativity and capabilities, in order to ensure that the technical staff recruited bears necessary skills required to develop innovative and competent products and services.........................
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