Comergent Case Study Anaylsis
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- Date Submitted: 01/29/2010 01:38 AM
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Key Issues
Having conducted SWOT, PEST and Customer analysis the following issues became apparent for Comergent:
Customer acquisition and Retention
The nature of Comergents product dictates that they have a small number of high net worth customers. Securing and maintaining these customers is a major focus and issue as one customer leaving or joining could mean a huge financial loss or gain.
Growth strategy
Comergent have an aim to grow 40-50%.There is an internal debate whether Comergent should concentrate its marketing effort on highlighting the organisations core competencies to existing and potential customers or if they should work on tailoring their approach towards customer problems and then building on this relationship. Comergent need to decide which of these strategies is best to drive growth.
Partnering
In order to have a more extensive offering a number of key partnering decisions need to be made. The software industry has so many opportunities partnering and synergies the decision on who you pick is vital.
Weighing up the options
“Need to remember it is a marathon, not a sprint, customer acquisition and retention will help us win the race”. As stated in the case it is important to note that the decision should not just be made based on the need to grow immediately, but the need for customer retention and long term growth.
Customer A: Alpha Co-operative.
Pro: Quite attractive as is a $750 million cooperative. The sales team of Comergent had looked into it and had concluded that it there was potential involved here. However on the downside to this option as it is a co-operative any major decision with regards to capital spending would have to be passed by the membership. In the case where Comergent were to use the “land and expand “strategy as a method of building customer loyalty early, although the $300,000 licence fee might be passed by the membership, the idea of trying to grow over time would be a lengthy process as any...
Having conducted SWOT, PEST and Customer analysis the following issues became apparent for Comergent:
Customer acquisition and Retention
The nature of Comergents product dictates that they have a small number of high net worth customers. Securing and maintaining these customers is a major focus and issue as one customer leaving or joining could mean a huge financial loss or gain.
Growth strategy
Comergent have an aim to grow 40-50%.There is an internal debate whether Comergent should concentrate its marketing effort on highlighting the organisations core competencies to existing and potential customers or if they should work on tailoring their approach towards customer problems and then building on this relationship. Comergent need to decide which of these strategies is best to drive growth.
Partnering
In order to have a more extensive offering a number of key partnering decisions need to be made. The software industry has so many opportunities partnering and synergies the decision on who you pick is vital.
Weighing up the options
“Need to remember it is a marathon, not a sprint, customer acquisition and retention will help us win the race”. As stated in the case it is important to note that the decision should not just be made based on the need to grow immediately, but the need for customer retention and long term growth.
Customer A: Alpha Co-operative.
Pro: Quite attractive as is a $750 million cooperative. The sales team of Comergent had looked into it and had concluded that it there was potential involved here. However on the downside to this option as it is a co-operative any major decision with regards to capital spending would have to be passed by the membership. In the case where Comergent were to use the “land and expand “strategy as a method of building customer loyalty early, although the $300,000 licence fee might be passed by the membership, the idea of trying to grow over time would be a lengthy process as any...