ENTERPRENEU DATED: 27TH APRIL 2020

RSHIP
ASSIGNMENT

GROUP MEMBERS
Alina Ali (BBA-171001)
Arooba Maqsood (BBA-171039)
Minahil Nafees (BBA 171015 )
Muskan Fatima (BBA-171038)
Saniya Sohail (BBA-171017)

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ZAPLET AND RIGHTNOW TECHNOLOGIES CASE STUDIES

People often show interest in starting a venture but a significant obstacle they face is the
shortage of money. If a person has a viable business idea then the lack of capital shouldn’t
bother him. Business can be started with or without money. Although it seems a bit complex to
start a business without capital, however with proper planning and execution it is probable. In
words of a research, 98 % of successful ventures started with only a handful of capital.
Huge sum of capital at times might not be sufficient enough and on the contrary a few bucks
can prove to be a game changer. This is illustrated well in the given 2 cases of Zaplet and
RightNow technologies.

ZAPLET COMPANY
Zaplet Company conducted extensive market research and had proper vigorous business plans
that directed their each and every step before they commenced their venture. Two computer
experts by the name of Brian axe and David Roberts came up with an IT product, active web-like
messages and applications that could be delivered through email and the company Zaplet was
established in one of the world's most expensive place by the name of Silicon Valley. Everything
seemed to go well for the company. They were able to get financial support from investors, the
product received applause from venture capitalists, and the pioneers hired 27product
managers and 30 coding developers for their company's product. The product proved to be the
Centre of attraction for the investors and also the Wall Street (USA STOCK MARKET) was buzzed
by the company's potential to grow. In 2001, Zaplet was able to generate venture capital of
massive USD 90 million.
However this lump sum investment, solid plan to execute business in a posh area and hiring
professionals for better company standing all went in vain. The company could not sustain its
position and was a flop. Having such a huge capital also didn’t guarantee the success of the
company and Zaplet was filed for bankruptcy.

RIGHT NOW TECHNOLOGIES

It is no secret that small drops of water make an ocean. A common Man by the name of Greg
Gianforte climbed the stairs of starting business by stepping in IT field. He came up with his own
initial investment of only US$5000 and was able to reach the heights of success in a short span
of time with smart entrepreneurial moves. Greg established RightNow technologies in Bozeman
having a population of 27000.He came up with a software product that aid companies respond
to their customers email's timely and efficiently thus answering to customer’s queries promptly.
Greg made an aim to create 2000 job opportunities in his own homeland. Since he had limited
capital, Gred worked solely and the smart move he played was to ensure making and

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strengthening good relationships with customers. He began with cold calling customers and
just after a year end ,he was able to generate a revenue of US$20000.Greg would offer
discounts to his customers, give the product on lease, he would even sell them product for free
in return for actual early adoption and detailed feedback in use. Greg was confident and
comfortable in selling directly to customers and didn’t feel any hesitation.
With the smart steps he took and his immense focus on efficient customer relationship
management, his product witnessed a milestone and it was popular in around 40 companies,
Greg then hired 5 employees who were also sales people as he paid enough emphasis on sales
and he considered it to be the most important aspect of any business. He was not in favour of
the idea of hiring someone else to do selling and hence it was the main reason that Greg
conducted sales himself .He firmly believed that "Sales is the only job that has to be done well
in building a business.”
Finally in 1999, right now technologies CFO was hired to install the company’s financial systems
and come up with an IPO (floating the company shares for the first time). All these steps were
enough to turn his little venture into a big hit and the business that commenced with a tiny
investment of only $5000 was able to generate US$100 million in the later years. Hence, limited
resources proved to be plenty enough for Greg to generate millions. It is evident that Greg
yielded revenues by paying huge attention to sales and smart moves. His strong conviction and
commitment made him a worthy entrepreneur.

COMPARISON OF ZAPLET AND RIGHTNOW TECHNOLOGIES

Heavy investment is not always necessary for the growth of any business. RightNow Technology
flourished with success despite all the odds of having little investment and limited resources
overall. There were many reasons that led to the eye opening victory of RightNow Technology
in contrast to Zaplet Company. The first and the foremost factor that led to the win of the
RightNow technologies was the initial investment made by Greg, he did equity financing all by
him and invested only US$5000 thus averting himself by incurring a huge loss in future. On the
other hand, Zaplet Company started business in a populated region of Silicon Valley with a giant
investment of US$90 million by taking help of venture financiers. In the end, Zaplet suffered an
immense deficit which was improbable to recover through their sales; hence it shattered the
money matching concept resulting in the downfall of Zaplet. Also Greg made some smart
moves and came up with different strategies that served him to conquer in his venture leading
to the astonishing growth of RightNow Technology. Greg was a man of conviction, he worked
all alone, did not hire any employees for selling and dedicated himself for smooth
communication with his customers and to understand business more distinctly. On the other
hand Zaplet hired 27 professional experienced product managers and 30 developers for his
business to handle selling who didn’t mingle well with the customers and failed to build
communication and hence the company Zaplet was not able to generate fruitful revenues.

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Rightnow Technologies offered different facilities to the customers, Greg little resources and
investments initiated him to carry out finances diligently, he made smart moves by better
utilizing his assets, all this resulted in exceptional growth of RightNow Technologies whereas on
the other hand Brian and David who invested lump sum of money, squandered all the capital by
wastefully spending the finances which made it really difficult for them to cover up in the end.
In this way RightNow Technologies completely outclassed Zaplet Company.

CONCLUSION
Considering the two above mentioned cases of Zaplet and RightNow Technologies it can be
concluded that the ideology that business startups require heavy investments to succeed is
nothing but just a myth. Starting with no or little investment and turning out to be a winner is a
real challenge rather than considering the fact and emphasizing on starting with huge
investments.

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