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Analysis of Case Study

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Misunderstood the product demand

No prior experience

High switching cost

MCSEs were not ready to shift to Linux

Very few Unix/Linux based System Engineers

Large sales cycle

Product less in features

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SalesModelProduct

Linux basedOpenmail

Process

Appointmentswith CIOs andPresentations

Most of theleads were

generatedthroughcontacts

Customer

LargeOrganisations(> 0,000 seats)

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Direct Selling

Channel

Linux based Email & Calendering

Product

Approached large corporations

Place

43% lower than MS Exchange over 3 yr period

Onetime $60 per seat fee + 20% List price for maintenance

Price

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The views of the CIO is echoed to the

lower ranks

There are plenty of medium & largeenterprises where running current

systems was cumbersome and needed

change

Confident about standing by thetransaction sizes due to large and

medium enterprises

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Skill of the sales personnel

Length of the sales cycle

Targeting the right customers

High cost per sale

Relationship management

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Startup No credibility

Did not consider the views of operations

teamVery few people on Linux/Unix platform

Scalix has product issues

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Build a customer base in the small and

medium segment enterprises

Build a new strategy to tackle CIO,

Bottoms-Up method where training is

given to lower rank employees.

Have Linux/Unix based certification.

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Group - 9

Scalix should emphasize on a combined model (Direct +Indirect Sales)

Direct sales model makes contacts easy with large enterprises

Tele Sales models should be adopted in order to target the small enterprises

A contract with a large enterprise would act as a goodwill to get contracts with similar

or small sized companies

Scalix doesnt have Acts & Assets to offer credibility in the market and hence clinch

deals with medium and large enterprises. They are not willing to take risk by going

with Scalix as the stakes are very high as e-mail is an integral part of an organization.

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Group - 92

Targeting mid market companies will bring credibility and reliability for Scalix.

Point ofDifferentiation Price, which matters more to mid market segment rather than

Medium and Large Enterprises.

Can use revenues from mid market sales to cover Total Variable Costs. In Initiation

stage it is important to break even rather than make profit.

Time taken to close a deal is small in mid market sales.

With small organizations stakes are lower and chance to learn from mistakes.

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Group - 93

Telesales Direct Sales

Start up in initiation stage. During maturity stage

Low Value accounts. High Value accounts.

Low Selling Cost. High Selling Cost.

Low Value familiar Product. High Value unfamiliar Product.

Lower Connect with the CustomerGreater connect with the

Customer