Quado Systems Group Case Study 18:
Should Quado Pursue New Opportunity?
Quado systems is a systems integrator that uses two systems and is currently looking to shift their focus to the internet. The Taylor Corporation is a wholesaler of woolen products also considering to create a more interactive internet site. Taylor Corp is wanting hire either the Quado or Synectic Company. Quado is considering the job because it will help them gain references to do more internet business, but it ends up being up to them to accept the challenge of putting all their eggs in one basket or not. The decision of Quado pursuing an industry outside of their current area of expertise could affect each stakeholder within the organization because they have a lot to gain, but they also have a whole to lose if they’re not successful. If the sales teams makes the sales, then they’ll be able to make their quota for the next year. Upper management is nervous for this new venture because it will be the largest job they have ever taken on and it will push the company to the max on numerous levels. If successful though, this project can provide Quado systems with the opportunity to be well positioned in the future for their goal of entering the internet industry. The retail industry should be a strategic focus because they need the referrals and experience from their clients for the fast growing industry. A pro of this industry is that it’s growing rapidly allowing steady business and a simple barrier to entry. The cons can easily outweigh everything with this being such a large project resulting in higher automation and production costs. With investing so much time and effort into one account, it can leave Quado vulnerable if the project were to go under. Being Quado, a company in its early stages hoping to grow to become a publicly traded company, having a sales compensation program would likely benefit the company as a whole. In the case it was mentioned that signing the Taylor account would meet the entire year’s quota. This comes across as a conformist attitude. This type of behavior could be improved by offering bonuses or stock options to employees who meet their quotas and increase that bonus at a percentage relative to above quota achievement. The sales group should position this as an opportunity for Quado to grow as a company. Forming a deal with Taylor Corporation would bring in huge amounts of money for the company and allow them to move into the internet field. If they were to make this $9 million sale, it would put them in a much closer position to obtaining their $25 million goal for the following year. If Quado can meet all of the demands of this sale they will position themselves very well to move farther into the specialization of consulting in the internet field and will attain a strong reference account to aid negotiations with upcoming clients. The three selling strategy alternatives I’m going to point out are using specialized attention benefit, utilizing the experience and expertise of their technical consultants, and utilizing a lower price leverage. Selling using the specialized attention benefit: Quado could utilize the special attention an account as large as Taylor Corp. would get as it would be the largest account Quado signs in comparison with Synectics where an account as Taylor Corp. is seen as small/medium and does not get much attention. The pros of this strategy are that the company will feel more important, they will perceive Quado as very invested in their account and will most likely trust Quado with the project as they will see the effort that is being made. The cons are that Taylor can be expecting too much of Quado. Selling utilizing the experience and expertise of their technical consultants: Quado could sell their services by focusing on their highly experienced consultants and emphasize the level of expertise they bring to the company making Quado seem more educated and...
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