Wednesday, January 20, 2010

salesforce.com (3)


Look at Michael Porter's Generic Strategies (http://www.quickmba.com/strategy/generic.shtml)

1. Salesforce.com is a has a Focus Strategy at low cost. The evidence is the type of users that they have acquired, the online access allows them to reach more companies by offering an easy-to-use, low cost product, while focusing only on the CRM and sales tools for the business.

2. Oracle uses a Differentiation Strategy, by offering a highly customized service that offers a wide range of solutions under one service umbrella. SAS may be considered a Cost Leadership Strategy, because they look to leverage their analytic capabilities across a different number of industries with different business solutions.

3. Salesforce is very well positioned because they have the first mover advantage, and they have created a series of solutions around their primary business that increase the barriers to entry of possible competitors with a similar business model. Right now they are facing the transition of companies such as SAP and SAS to the cloud computing, where they could represent a credible threat if their services are successful in matching their traditional software with the cloud computing solutions they have.

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