SaleSoft Inc.: Case Analysis

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Group # 9
Gaurav Teltia 121/47
Pinjala Srujana FP/11/2010
Himanshu Singhal 125/47
Gaurav Jindal 119/47
Shreyans Rai Jain 129/47
Ishan Mahajan 127/47
Jayson DMello 133/47
Jay G Waghmare 131/47
Vibhor Gupta 123/47

SaleSoft Inc., currently developing and marketing a CSAS solution (PROCEED), is contemplating launching a Trojan Horse (TH) product. This report contains analysis of PROCEED vis-a-vis TH with a set of recommendations for why SaleSoft should continue to focus on the former.

Following are some key points regarding TH and CSAS markets:

● Only large firms with complex sales cycle are interested in CSAS based solutions. Thus TH and CSAS are targeting different markets.

● TH does not have very many differentiating factors when compared to the (announced) upgrade version of CMS. Moreover, CMS market is already crowded with 300 vendors. Possibility of big players (Microsoft and Lotus) entering this segment makes it even more competitive.

● Main differentiating factor of CSAS is its ability to provide a firm with an end-to-end solution integrating Sales, Marketing and Customer Service. Also, CSAS market is less crowded with all vendors being small start-up companies.

Following is an analysis based on Porter’s Five Forces framework to demonstrate why SaleSoft should focus on PROCEED:

● Threat of new entrants: Since CSAS solutions have high product development and installation cycle, there is a high entry barrier for new players. SaleSoft already has a first mover advantage.

● Threat of Substitutes: There are very few integrated solutions available in the market. PROCEED is the only product offering both Opportunity and Account Management.

● Industry Rivalry: There are only 5 existing players in the market who have limited market penetration (
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