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DigitalThink: Building a Sales Force Case Solution

Solution Id Length Case Author Case Publisher
1457 357 Words (2 Pages) Christina Darwall Harvard Business School : 898193
This solution includes: A Word File A Word File

The key issues relate to the hiring and job roles of sales force. In an industry where high costs of setup and connection problems are common, the hiring of the most suitable sales force is essential to take ahead the business. The issues further relate to the kind of compensation that would be offered to sales representatives, which has to be market competitive. Another issue relates to the competition that DigitalThink faces from CD-ROM trainings.

Following questions are answered in this case study solution

  1. The key issue(s) of the case?

  2. What decisions need to be made / what are the alternatives available?

  3. Which option(s) do you recommend? 

  4. What are the risks involved / what can you do to mitigate these risks?

Case Analysis for DigitalThink: Building a Sales Force

2. What decisions need to be made / what are the alternatives available?

The primary decisions relate to the selection of new sales force personnel. Should the company go for experienced professionals in the field or hire fresh graduates? This is an important decision as DigitalThink, being a startup, has affordability problems. Secondly, the compensation package to the sales force is another important decision- whether to hire a commission-based sales force or offer them other incentives. In addition, as part of account management, how often should DigitalThink recalibrate the target accounts?

3. Which option(s) do you recommend? 

The company’s previous experience with hiring fresh and young personnel has been successful. Hence, it is suggested that such personnel be hired, as opposed to experienced professionals. Such a strategy of hiring ‘young blood’ will also be cheaper for the company as a start-up. Secondly, the compensation package for fresh hires should be more commission-based as opposed to giving them stock options. Stock options, giving ownership opportunity to the employees, should be a practice for more senior employees of the company.

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