Gm Market Case

1. Phase one: Maximize Market Share of Techies

Firstly, we decided to focus on Techie Market, so we developed a new version of software with high power features. At the same time, we kept hiring customer service representatives while fired most of our consultants to ensure the focus. We set a high price of the software since Santra acts as the leader of this industry. To ensure the high quality of the customer service, we also invested more on employee training. Running this strategy for five quarters, we successfully maximized our market share of Techies by keeping old customers and appealing potential ones.

2. Phase two: Transfer to GM Market

Our focus for this period was to transfer shares of techies market to the emerging GM market. Since the industry GM sales boosted and are continuously raised and our key competitor on this market-ExecuData's GM sales increased rapidly. We began to hire consultants and keep the scale of existing customer service representatives. And we created new version of software with ease-of-use features for General Managers. Moreover, we put more investment in IT segments to help develop the new product and improve consultants' skills. Because the overall expenses increased and Techies are not price sensitive, we set a higher price of our software to keep the profit.

3. Phase three: Beat ExecuData and Take Control of GM Market

The main goal for the last phase was to dominate the GM market and exit the Techie market. First of all, we cut the price of 3rd version of ease-of-use software to seize the GM market share from ExecuData. When the fourth version of software released, we offered a more attractive price to take over the GM market. Meantime, to enhance the consultant customer service, we doubled the number of our consultants and invested large amount on IT segments. And to exit the Techie market, we lay off almost all of our customer service representatives.

To conclusion, our main strategy is to adopt software development to changing market and to offer high quality service to our customers. And we always try to develop the State-of- the-Art products to differentiate from others.

Metrics:

1. Phase one:

Learning and Growth: Avg. Qual. Power ideas, Avg. Skills of CS Rep;

Internal business process: CS lead time, Avg. Dev. Cycletime;

Customer: Service Appeal Techie, Market Share Techie;

Financial: Annual Revenue, Profit Margin.

2. Phase two and three:

Learning and Growth: Avg. Qual. EoU ideas, Avg. Skills of Consultants;

Internal business process: Consultants