-
8/6/2019 Keynote Analysis
1/7
KEYNOTE
SYSTEMS
INC
.ANALYSIS
SWOT
Porters Five Force
Competitive Analysis
By: Aditi PuranikSCIT
-
8/6/2019 Keynote Analysis
2/7
SWOT ANALYSIS
-
8/6/2019 Keynote Analysis
3/7
Strengths
First movers advantage
Blue ocean strategy
Thought leaders
On-demand services
Real time and syntheticmonitoring in singleinterface
(TrafficPerspective)
Opportunities
Security Vulnerabilityscanning
Email performance
monitoring Monitoring and managing
performance of emergingtechnologies like InternetTelephony, WIFI
etc.
Providing end-to-endsolutions (data centers andin-house
monitoring to lastmile rather than discretesolutions)
Weakness
Public listed companysubjected to
shareholders interestand market sentiments
Lesser extensivefinancial reserves
10 target customersaccount for 34% ofrevenue
Threats
Competitors offering productslike:
Gomezs enterprise integration,Business Pulse (Dashboard)linked
to KPIs
Gomezs acquisition byCompuware with greater Capexbacking
Compuwares Vantage 11offering data privacy testingand in-house
monitoring
Alertsite offering Security
Vulnerability and Emailmonitoring
-
8/6/2019 Keynote Analysis
4/7
PORTERS FIVE FORCE
ANALYSIS
-
8/6/2019 Keynote Analysis
5/7
Threat of new entrants: Low
y Established players like Keynote Systems, Gomez and AlertSite,
secondary players
like Diana Consulting and Elk Monitor as well as licensed
software providers like
HP,IBM, BMC etc
y Contracts are based on trust, reliability and client list as
well as service record due to
the inherent problems of SaaS like vendor lock-in, security,
loss of control over data
and governance issues
y However, with the technology base being SaaS, CapeEx
requirements are close to nil,
hence barriers to entry in terms of technology and investment
are low. However,
network effect, R&D and customer loyalty barriers are
high.Keynote: As of December 31, 2008, Keynotes total worldwide
customer base was
approximately 2,800 companies. Keynote currently provides its
services to 46 percent of
the comScore Media Metrixs top 50 Web sites and approximately 45
percent of the
Fortune 100 companies. Average customer retention rate of
95%
Threat of substitutes: Mediumy Free software available online
for load testing
y Google analytics, yahoo analytics providing click stream
analysis, analytics
intelligence and visitor statistics
y However, no company has perfect substitutes because each
offering has its unique
advantages eg. Gomez provides business dashboard and enterprise
integration while
Keynote has a research panel of over 145,000 panelists and
Traffic Perspective,
-
8/6/2019 Keynote Analysis
6/7
Bargaining power of customers: High
y Competitors like Gomez provide similar services with features
like businessPulse FX dashboards and security vulnerability testing
and e-mail performancemonitoring (AlertSite).
y Acquisition of Gomez by Compuware, thereby providing true
end-to-endsolutions
y Low switching costs and no fixed costs due to SaaS model
y Not much differential advantage
y 10 target customers contribute to 34% of revenue (RFM)
(Recency, Frequencyand monetary value)
y
ISPs and web hosting providers like IBM and EDS who sell or
bundle Keynoteproducts as value added services, content
distribution providers, such as Akamai,which use its services as a
pre-sales tool may shift preferences to competitorsoffered a better
deal eg. better commissions, lower cost
Bargaining power of suppliers: Low
y Partnered networks used for research
y N/W operators that allow installation of probes
y ISP that allow active agent workstations to be installed
on-site
y Low bargaining power because it is an additional source of
income for bothpanelists and operators and allows operators to
record service data and enhancecustomer satisfaction with
service
Competitive Rivalry: High
y Please refer to word document
-
8/6/2019 Keynote Analysis
7/7
REFERENCES Keynote, Gomez and Alertsite Websites and Sub
sites
Keynote Systems Annual Report 2009
Forrester Reports:
y http://www.gomez.com/download/an_Forrester_TechHorizon.pdf
y http://www.keynote.com/docs/Forrester_2009.pdf
http://www.alertsite.com/download/datasheets/AlertSite_On-Demand_Web_Load_Test_Brochure.pdf
http://www.keynote.com/docs/whitepapers/why_real_browers_matter.pdf
http://www.netforecast.com/Articles/BCR%20C36%20Real-vs-Synthetic%20Measurement.pdf
http://www.crunchbase.com/company/gomez-inc
Customer Service Response by Keynotes Business
DevelopmentExecutive Mr. Mark Majeski
