In the month of March 2001, the president of Sy.Med Development, Inc. (Sy.Med), a small health-care software business, was concerned about his business's sales performance in the year to date. The president wonder whether a transformation to the base price of the software was needed to boost sales. The theory of value pricing at Sy.Med demands the simultaneous consideration of customer segments and sales force apportionment in a high tech setting.
With cautious calculation, the advantage can be determined by pupils to a specific customer of using the OneApp applications. Some sensitivity analysis is desired because not all practice sizes are equal, nor do they face the same labour costs. Although the pricing decision is the focus of the case, strategy (e.g. relating to customer choice, tactical focus) and sales force problems are inextricably linked to this decision. Subsequent to the class discussion is complete, students should understand that pricing decisions cannot be made in isolation; structure and the strategy of the market must be contemplated
Sy.Med Development, Inc. case study solution
The case works well in the core MBA promotion class to introduce the notion of value pricing, and equally well in a class focused on pricing to accentuate the interrelations among organizational issues, the competitive market and the pricing choice. The case may also be used in an orientation program or as an opening instance to help train students in the skill of preparing a case analysis that was quantitative.
PUBLICATION DATE: May 26, 2009 PRODUCT #: 909A10-PDF-ENG
This is just an excerpt. This case is about SALES & MARKETING
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