Precise Software Case Analysis

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PRECISE SOFTWARE CASE ANALYSIS

Problem:

When and how to introduce an end-to-end new product to the market?

Issues:

1. Should we (Precise) introduce a new product in Open World conference 2000? What could be the impact if we delay to offer an end-to-end solution in the performance management space?

2. What is the best selling strategy for the new product?

3. What is the best pricing strategy for the new product?

4. Should we maintain a single sale force or separate sale force dedicated to the new product? What kind of commissions and how much authority should we set up for the sales force regarding to the new product?

5. How can we deliver the value of the new product to meet our customer expectation and solve our customer problems?

6. How to grow and compete in order to be a leader in the market on a much broader level?

Industry/Market Analysis:

Database management software referred as performance management market where efficiency and effectiveness are really important. There are a lot of opportunities due to the need of IT system from the companies. Nearly every company in the industrialized world spent a significant amount of money every year on software purchases ranged from $99 to $10million.The software market estimated to be $4.8billion in 2003 compare with $2.4billion in 1999. However, the market was fragmented. Products were differentiated principally in two ways. On one hand, products differed widely in terms of underlying resources and platforms with they are associated. On the other hand, available products also differed in terms of the functionality they offered. There are few major competitors in this market and the industry need high intensive labor cost. It usually takes long time to develop new product in this industry. Effective advanced technology and product, which can solve the problem for the companies, are very important to success in the industry. Time is another important key to determine whether business will success or fail. Companies in this industry should improve their technology quickly to catch up the ever-changing information technology trend as well as dig the problems of the companies to present the right problem-solve products. One of the largest segments of the market was for software to manage the performance of Oracle databases. A true end-to-end market seemed to be quite large and there was no current direct competition because none of the companies offered an end-to-end solution yet.

Consumer Analysis:

Database administrators (DBA) are the main targets for Precise. The former usually are well trained thus capable of recognizing the products value. Many DBA’s were authorized to purchase a product range under $25,000.Precise looked for companies had sales of at least 100million and had a business model that required database-intensive applications. DBA need to report to the CIO and need to improve the job performance in order to make performance application efficiently as well as satisfy the business unit head. They are usually budget-limited when they purchase the product. IT Reliability and effectiveness are the other main factors to concern for users. Regarding to the end-to-end management tool service, business firms using enterprise-wide applications have a desired demand. They require the enterprise applications such as ERP and CRM, which were 10million and above. The applications were distributed across many locations and highly data intensive. Firms depended critically on the ability to deliver information quickly, will be the main targets for the new end-to-end product.

Competitor Analysis:

The three biggest competitors in the software market were Oracle, BMC Software, and Quest Software. Oracle is provides “Oracle Optimizer” as a part of its basic database package helped to execute SQL statement it received in the most efficient fashion and also offer an add-on package to help measure efficiency. BMC...
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