Recommendation and Justification
Maggie Hao, who created the Datavast Company decided the most effective solution is the size of segmentation. The demand of each company in each geographical areas and industries are different, also buying properties. However, firm size affects the demand and necessity of each company. Although they had no direct competitor at the time, Hao decided to make his plan with opportunities as well as the storage industry in China. There are several problem of the company which are short term marketing strategy required, undetermined target market, and desired goal of positive net income. Firstly, Datavast should collaborate with system integrator which is used by large business and government organization. Because SI’s initiation and influencer, they can provide for the customers full-package solution, the customer were loyal to their SIs through strong. In addition, SIs is one of the most crucial specialties in the defense contracting industry, they are able to advice for the customers to solve their problem with the best solution with the lowest risk. In contrast, IT suppliers are the best choice for SME because the price of system integrators is expensive for them.
The advantages of IT suppliers are they have a large portfolio of product to sell, and tens of thousands of items, but they are do not have much the information of every products in their stock. Datavast can push the strategy to personal selling, they can sell their product directly for the customers instead through the third party, the price they set can be suite with both businesses (SMEs and Large company), pull strategy by cumulative quantity discount can also solve the problem. Hao created new product called Data Security Box, which is many advanced features such as able to back up large quantities of information, encrypt it using the latest technologies, the customer do not need to worry about leaking information with third party. Furthermore, Hao made the box more attractive than the traditional, and the price is cheaper than the back-up systems which usually used by large companies. While the public cloud has partnership with China Telecom, the largest telecommunications company, Data Security Box had no association with this company. The quality of Data Security Box which sell for SMEs from IT suppliers is lower than the not-so-standard product of large company, so the selling cycle to SMEs was much faster than it was for large company, they can complete the payment in two or three weeks.
The profit were close to 50 per cent, including the servicing cost and they did not have the professionally employees in IT. Whereas, Data Security Box is not able earn higher margins because most of the product in SIs came from many popular brand such as IBM, Cisco. It took two to three months to complete the payment and time for make the decision processes. If Data Security Data success in SMEs areas, Datavast need expand more because it will faster and make more profit. However, Datavast should pre-position the public cloud because it has partnership with China Telecom, update this product to hybrid cloud which combination of a private cloud combined with the use of public cloud service. New product created unified, automated, and manage the environment of computer. Hybrid cloud is environment where can use both public and private cloud to create the value. Its can connect different environment to certain environment. Rouse, M. (2007, July). systems integrator. Retrieved from http://searchitchannel.techtarget.com/definition/systems-integrator Rouse, M. (2013, September 23). hybrid cloud. Retrieved from http://searchcloudcomputing.techtarget.com/definition/hybrid-cloud
