SaleSoft, Inc (A)
The main objective of SaleSoft (SS) is of becoming a leader in the high end of the Sales Automation (SA) software industry for which they introduced PROCEED which had very little competition and high demand. Now, SS needs to decide whether or not to introduce a Trojan Horse (TH) product which could potentially distract SS from its primary objective.
There is a risk that if SS launches TH then the sales of PROCEED might get affected.
PROCEED had received good response but to convert interest to actual sales was taking time and also with limited funds it had to show performance.
SA has a market for around $1 billion and expected growth was 40 % annually for next five years.The time to sell and install a typical SA project took anywhere from 22 to 30 months.
The major concerns for the company were that:
• Company didn’t have enough resources to have separate forces for the two products (TH and PROCEED).
• If company sells both the products, then customers might end up buying TH rather than PROCEED which is great loss to company as the company has invested a huge amount to get PROCEED in market.
SaleSoft needs decide to whether to go ahead with PROCEED or not.
SS has following options:
• Can either go for PROCEED
• Or can go for Trojan Horse
• Or can go for both.
• TH was more than CMS but less than CSAS.
• TH mainly targets those customers who didn’t want to go for complete automation for all the processes at the same time but at the same time they were looking for a system to manage their sales forecasting process.
• The time required to launch TH is comparatively less say 3-4 months as TH had few functions that were in PROCEED’s sales system and few other functions were needed to plan. These functions which are created for TH can be useful for PROCEED also. So if SS goes for...