Sams and Mary Mis Case Study

Case analysis of targeting the market case study.

MBA 523: MIS

Gayatri Subramanian         6/15/16

 Vandana Malhotra

The Sams market pros

1. Not many small companies so less competitors
2. Easier to penetrate market
3. affordable selling process
4. Aligned with mission to help small companies to develop simpler software to create an interdependence.
5. Small companies may show higher enthusiasm and readily incorporate the software

Sams cons:

1. ROI is less
2. Fixed costs are not recovered through volume sales
3. Profit per unit is less
4. Threat of entry is high
5. Software imitability is high
6. Price sensitive

The Marys Pros

1. paid for the development
2. Use software intensively
3. Promote the software
4. Profit per unit is higher
5. More budget for software up gradation or new product purchase.
6. Cancellation rate is low
7. Upgrading software can absorb the losses of cancellation.
8. Generates greater profitability on long run.
9. Easier to sell the software to Mary’s competitors. (attract larger target audience)

Mary cons:

1. Comparatively difficult to sell the product
2. May have higher legal and regulatory standards
3. Higher competition hence difficult to penetrate
4. More complex feature requirements and require higher level of technical support
5. Switching costs are high
6. Software imitability is high
7. Buyer power is high

Both Sam and Mary pros:

Higher profits

Higher market share

More visibility

One stop solution irrespective of market size

Both mary and sam Cons:

It is a two year old company with limited human and financial resource. Therefore its is difficult to manage resources to target both.

More ambiguity in process since the software features for both companies is difficult to manage.