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Oracle Vs Salesforce Com

Solution Id Length Case Author Case Publisher
1992 523 Words (4 Pages) David B. Yoffie, Alison Berkley Wagonfeld Harvard Business School : 705440
This solution includes: A Word File A Word File

In order to compete with SalesForce.com, we need to follow three major strategies:

• Introduce a highly flexible and personalized product

Launch a single edition product with complete access to the features provided within the deal. 

Moreover, users must not only be provided with customization options but also be allowed to share tailor-made applications and components.

Following questions are answered in this case study solution:

  1. What would you do to compete with SalesForce.com?

  2. How would you ensure that your SaaS service didn't cannibalize your other product sales? 

  3. Since Ellison was a major player in both NetSuite and Oracle, how would you approach this unique competitive reality?

Case Study Questions Answers

• Market to small and medium-sized businesses

On demand product is better suited to SMEs because they have tighter budgets making them cost sensitive; there data security requirements are much lower than large companies, and most of them are looking for basic functions rather than whole IT integration and full services.

• Adopt a competitive pricing strategy

Charging high prices to sustain brand name will inhibit market penetration, and any cost burden due to reduced prices can be shared by other successful Oracle product lines. Hence, competitive pricing is best because it will lead to larger growth opportunities, ultimately resulting in greater revenue. 

2. How would you ensure that your SaaS service didn't cannibalize your other product sales? 

There are three major ways through which we can ensure that SaaS does not threaten the sale of the packaged product. 

  • Target SaaS to completely different users: There are a lot of businesses which do not opt for packaged CRM due to its high cost, time constraints, and/or complications involved. We can target SaaS to them because they are a completely new market, which was never a part of our customer base or potential customer base, to begin with.  

  • Ensure that the products are different: In order to avoid current and potential licensed users shifting to SaaS, we must leave the best and premium services in the packaged version. 

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