Datavast Inc., a product designer and manufacturer based in China, had just launched its new private cloud storage product, the Data Security Carton. He decided as customers in different sectors and areas did not have purchasing features or completely different needs that segmenting by size was the best approach. Yet, SMEs (businesses with 200-500 computers) and big companies (firms with 1,000 computers) exhibited greatly different needs and purchasing behaviour.
The general manager had limited resources, so he confronted the decision of focusing on either SMEs or large companies. Although Datavast did not have any direct competitors at the time, the company's present state and abilities, together with the data storage business in China complicated its selection. Also, the general manager was reluctant to make additional capital investments in the company and was expecting to retire within five years. Datavast was managing at a loss and his goal was to bring the business into profitability within the following year. A net loss also meant the organization can barely afford to be burdened with big additional expenses. Lastly, private cloud storage was a new technology in China as well as the marketplace needed to be familiarized with the notion.
PUBLICATION DATE: June 08, 2012 PRODUCT #: W12436-PDF-ENG
This is just an excerpt. This case is about SALES & MARKETING
Related Case Solutions & Analyses:
Drivers of Technology Licensing: An Industry Comparison
Overcoming Consumer Resistance to Innovation
Transferring Marketing Knowledge to the Nonprofit Sector
Meloche Monnex
King-Size Co.
Ben & Jerry
Domestic Violence: Child Abuse and Elder Abuse
Aqualisa Quartz: Simply a Better Shower
Colgate-Palmolive Canada: Fighting for a Share of the Toothpaste Market
WoodBarn India: Trying to Break a Concrete Mindset
