Analysis of Case Study

Group - 9


9 2 .‡ Misunderstood the product demand ‡ No prior experience ‡ High switching cost ‡ MCSE·s were not ready to shift to Linux ‡ Very few Unix/Linux based System Engineers ‡ Large sales cycle ‡ Product less in features Group .

9 3 .Group .

000 seats) Group .9 4 .Sales Model Product ‡ Linux based Openmail Process ‡ Appointments with CIOs and Presentations ‡ Most of the leads were generated through contacts Customer ‡ Large Organisations (> 0.

9 5 .Channel ‡ Direct Selling Product ‡ Linux based Email & Calendering Place ‡ Approached large corporations Price ‡ 43% lower than MS Exchange over 3 yr period ‡ Onetime $60 per seat fee + 20% List price for maintenance Group .

views of the CIO is echoed to the lower ranks € There are plenty of medium & large enterprises where running current systems was cumbersome and needed change € Confident about standing by the transaction sizes due to large and medium enterprises € The Group .9 6 .

Group .9 7 .

‡ ‡ ‡ ‡ ‡ Skill of the sales personnel Length of the sales cycle Targeting the right customers High cost per sale Relationship management Group .9 8 .

€ Startup ² No credibility € Did not consider the views of operations team € Very few people on Linux/Unix platform € Scalix has product issues Group .9 9 .

€ Build Group . Bottoms-Up method where training is given to lower rank employees. € Have Linux/Unix based certification.9 0 .a customer base in the small and medium segment enterprises € Build a new strategy to tackle CIO.

€ Group . They are not willing to take risk by going with Scalix as the stakes are very high as e-mail is an integral part of an organization.9 .€ € € € Scalix should emphasize on a combined model (Direct +Indirect Sales) Direct sales model makes contacts easy with large enterprises Tele Sales models should be adopted in order to target the small enterprises A contract with a large enterprise would act as a goodwill to get contracts with similar or small sized companies Scalix doesn¶t have Acts & Assets to offer credibility in the market and hence clinch deals with medium and large enterprises.

€ € Targeting mid market companies will bring credibility and reliability for Scalix.9 2 . which matters more to mid market segment rather than Medium and Large Enterprises. In Initiation stage it is important to break even rather than make profit. With small organizations stakes are lower and chance to learn from mistakes. Time taken to close a deal is small in mid market sales. € € € Group . Point of Differentiation ± Price. Can use revenues from mid market sales to cover Total Variable Costs.

Low Selling Cost. Low Value familiar Product. High Selling Cost.9 3 . High Value unfamiliar Product.Telesales Direct Sales Start up in initiation stage. Lower Connect with the Customer During maturity stage High Value accounts. Greater connect with the Customer Group . Low Value accounts.

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