Datavantage Coporation

Satisfactory Essays
DATAVANTAGE CORPORATION

Introduction
Datavantage was founded in 1988 by Marvin Lader an IBM veteran and a serial entrepreneur from Cleveland. The company was a reseller of business application software to small distribution businesses and corporate systems for the retailers home offices as well as a provider of legacy Cobol Systems for Distributors.

As part of the new strategy, Datavantage moved from a pure reseller to a software developer and point-of-sale solution provider.Chaz and Marvin felt that the development should be kept in-house.

XBR Loss Prevention Software
XBR software that Datavantage is considering acquiring is based on "by-exception" reporting methods that are determined by the specialty retail store.
The system is designed to quickly identify, rack and manage potentially fraudulent transactions.
The XBR software has the potential to substantially reduce employee fraud.
Chaz considered that the combination of the two applications would increase a store's productivity and reduce shrinkage, while creating value for both customers and Datavantage.
Both Chaz and Marvin are convinced that of they don't purchase XBR someone else will and will be unfavorable for Datavantage.

Datavantage Sales and Marketing
The primary methods utilized by Datavantge to sell its products and services are direct marketing trade shows and existing client testimonials.
Instead of using a traditional marketing campaign targeting retailers in general, the company concentrates heavily on what Chaz refers to as "personal marketing and referential selling".
In order to support its active sales and marketing efforts, Datavantage implemented an extensive hiring and training program for its sales representatives.
Chaz and Marvin wondered whether the acquisition of XBR would put the company through another hiring and firing turmoil that could threaten the company's strong position with its customers.

Datavantage Business Model
The first profit center is

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