Xero Case S

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Xero was founded in July 2006 by successful technology entrepreneur Rod Drury and specialist small business accountant Hamish Edwards. Xero is listed on the New Zealand Stock Exchange and is a fast growing company with teams in Wellington, Auckland, Melbourne, Sydney, Brisbane and the UK. The head office as well as the Research and Development department is located in Wellington. COMPETITORS:

Xero faces major competition from online accounting software MYOB ,Sassu and Sage. XERO’S KEY STRATEGY:

Xero has been realistic to define who their customers are; the company targets Small Business Enterprises which basically accounts for 97% of New Zealand's economy, apart from this company have good tie-ups with the accounting institutions and bodies. Xero is competing in a highly condensed environment but what differentiates it from its competitors is the approach of company towards the clients, rather than setting a separate team who will hear from and learn about the issues faced by customers, the company hears directly from the customers on a platform called Xero community, and they have been quite aggressive at coming up with new versions, within every 6-8 weeks, the company is coming up with a new issues of the software. Xero has been very realistic towards their business model, rather than aggressively getting into foreign markets they believe in going step by step, they currently have no plans to enter into any other market other than the ones they are currently in and with almost 450000 customers the company is doing well.


Xero's strategic challenge is to further strengthen its position into US and UK market, with the current slowdown into the European economy and the strong competition from established competitors, the company looks at bolstering its presence into the two potential markets, for this the company is looking laser focused at building the very best cloud accounting solutions for accountants and small...
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