Centra Software Case
Case: _Centra Software
Name(s):Alyssa
Altman & Ashley Hayes
Section: ______
Be sure to hand in the complete template, including grading sheets. Fiel d Sa
les
2. Les ser ’s S trateg y
1. Ree d ’s Strat egy 5 & 6. Alternatives and analysis (typically 3-5 alternatives)
3. E limi nate
1.
Strengths
-Leon Navickas who is the founder of Centra had worked as general manager of
Advanced Research and Development on the Lotus Notes groupware, which shows he has knowledge of the industry. (pg 4)
-Revenues have increased from $8.6 million in 1999 to $23 million in 2000.
-The three different products that are offered appeal to many if not all of the needs of the stated target market.
-Able to reduce the installation process from 5 days to 2 days. (pg.5)
Weaknesses
-The net income before taxes and interest has been constantly negative since
1996. The net income went from $-2.7 million to $-17.6 million by 2000. (pg. 14)
-Centras expenses significantly increase from year to year and in 2000 SG&A made up about 67.7% of the total expenses. (pg.14)
-The difference of beliefs between the VP of Corporate Strategy, Chris Reed and
Chris Lesser cause tension within the company.
-Centra only has about 10%of the corporations in the delivery platform of the market. [440/(330+440+150+20)]=10%
Opportunities
-eLearning accounted for $1.1 billion of the $17 billion spent in 1999, and projected that it would grow to $11 billion in 5 years. (pg2)
-In 2001 many of the Fortune 500 companies were evaluating the need for LMS.
-The eLearning and the eMeeting industries were in the beginning stage of their product lifecycle.
-The Web promised to cute the cost of synchronous learning. (pg. 2)
Threats
-There is a large amount of competition already existing in the industry. These competitors range from small companies to huge corporations.
2. Problem recognition (symptoms)
-Steve Lesser received a phone call from the field sales representative who ran the Ford Motor Company had a client
taken
Name(s):Alyssa
Altman & Ashley Hayes
Section: ______
Be sure to hand in the complete template, including grading sheets. Fiel d Sa
les
2. Les ser ’s S trateg y
1. Ree d ’s Strat egy 5 & 6. Alternatives and analysis (typically 3-5 alternatives)
3. E limi nate
1.
Strengths
-Leon Navickas who is the founder of Centra had worked as general manager of
Advanced Research and Development on the Lotus Notes groupware, which shows he has knowledge of the industry. (pg 4)
-Revenues have increased from $8.6 million in 1999 to $23 million in 2000.
-The three different products that are offered appeal to many if not all of the needs of the stated target market.
-Able to reduce the installation process from 5 days to 2 days. (pg.5)
Weaknesses
-The net income before taxes and interest has been constantly negative since
1996. The net income went from $-2.7 million to $-17.6 million by 2000. (pg. 14)
-Centras expenses significantly increase from year to year and in 2000 SG&A made up about 67.7% of the total expenses. (pg.14)
-The difference of beliefs between the VP of Corporate Strategy, Chris Reed and
Chris Lesser cause tension within the company.
-Centra only has about 10%of the corporations in the delivery platform of the market. [440/(330+440+150+20)]=10%
Opportunities
-eLearning accounted for $1.1 billion of the $17 billion spent in 1999, and projected that it would grow to $11 billion in 5 years. (pg2)
-In 2001 many of the Fortune 500 companies were evaluating the need for LMS.
-The eLearning and the eMeeting industries were in the beginning stage of their product lifecycle.
-The Web promised to cute the cost of synchronous learning. (pg. 2)
Threats
-There is a large amount of competition already existing in the industry. These competitors range from small companies to huge corporations.
2. Problem recognition (symptoms)
-Steve Lesser received a phone call from the field sales representative who ran the Ford Motor Company had a client
taken