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Salesforce Com

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2107 941 Words (6 Pages)
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Salesforce is a CRM software that allows the companies to manage their relations with the customers in a highly dynamic market environment. Previous CRM software would need to be purchased by the customers, which would then follow installation prices and would be time-consuming. However, in the case of Salesforce, it came up with its automated online offering for its target customers. This can be considered a disruptive offering (Bower & Christensen, 1995). By making use of cloud computing, it delivered its offerings to the customers through the internet, as they would get monthly or annual subscriptions. Hence, Salesforce made it possible for the customers to log in the site from a website and implement the software in accordance with its own IT infrastructure, hence resulting in quick implementation as well as lower costs as compared to the traditional CRM software and got a first-mover advantage (Farshad & Kampas, 2002). These costs could be easily borne by the small business segment, which was previously uncatered by big giants like Oracle and SAP (David, Tomlinson, & Scott, 2003).

Following questions are answered in this case study solution:

  1. What are the specific “jobs-to-be-done” that Salesforce.com is helping customers solve?

  2. Position Salesforce.com on a Price-Performance curve. Please show its position relative to other competitors. Support your positioning with an analysis using outcomes, core competencies, and competitor positioning.

  3. Create a business model canvas for Salesforce.com.

  4. Which aspects of Salesforce.com’s business model is integrated, and which aspects are modular? Keep SCM, CRM, and NPD in mind when answering this question. 

Case Study Questions Answers

Salesforce, therefore provided customers with a distinct experience as they could access the CRM applications from anywhere through their device and constantly monitor and improve their customer engagement endeavours. Also, it allowed for easy maintenance of the software as the service provider would manage it centrally. Moving on, Salesforce also ensured that it provided its customers with a cost-effective CRM solution as it helped in eliminating the costs for acquiring software licenses and provided the customers with a simplified subscriber-based model.  

Lastly, it helped in allowing the customers, which are mainly the businesses, to focus on strategic decisions rather than lower value generation activities.  The user-friendly nature of the application would, therefore, allow the users to effectively manage their customer relations. 

2. Position Salesforce.com on a Price-Performance curve. Please show its position relative to other competitors. Support your positioning with an analysis using outcomes, core competencies, and competitor positioning.

From the graph, it can be seen that Salesforce falls to the right of the Price Performance curve, indicating that the business is a winner in the sector. Sales Force was quick to realize the challenges faced by the users when it came to the implementation of CRM software and hence established an entirely online platform to facilitate customers in implementing the new CRM solution which played a huge role in driving business sales and profitability. Hence, Sales Force falls in the category of customer intimacy as it aligned its product offering with that of customer expectations. Net Suite, on the other hand, can be considered a loser, as it is priced higher and performs low relative to SAP and Oracle, which are mainly implemented in large companies with complex structures and focus on operational excellence. Comparing Sales Force with Right Now Technologies, Siebel, and Zoho, in terms of performance, Right Now Technologies is slightly better than Salesforce but is priced at a higher level as it falls in the tier of product leadership by providing the customers with a better quality service and a broad range of features. The same goes for Siebel and Zoho, which have been able to successfully replicate the business model of Salesforce but are performing below par, which is why Sales Force has the edge over its competitors as it provides with better performance in terms of user ease and lower pricing ensuring a higher degree of affordability by the businesses.

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